C
“Cancellation clause” - a clause that permits the insurer to terminate insurance cover during the policy term - the clause sets out the notice procedure the insurer must follow, and the basis for refunding the unexpired premium. The clause also sets out an insured’s cancellation rights and gives details about how any refund in premium that might be due back to the insured is calculated.
“Claim” - a claim is made when a policyholder seeks payment or settlement under the terms of a policy.
“Claims experience” - the cost and frequency of previous insurance claims - it is important for all claims or circumstances that might have resulted in a claim under a policy of insurance to be declared when applying for insurance.
“Claims-made policy” - a policy covering all claims notified during the policy year regardless of when the injury or loss occurred.
“Commission” - the remuneration paid to a broker/independent intermediary/agent for selling policies.
“Comprehensive Insurance”- a policy covering a number of types of loss or damage
“Condition”- the part of a policy stating that certain rules must be followed, for example, the duty to take reasonable care to protect property or to report claims to the insurance company promptly. A claims condition sets out what the insured has to do in the event of a claim. It covers notice of loss, assistance to the insurer and proofs of loss. A condition may sometimes also be referred to as a warranty.
“Consumer Credit Act 1974” – the legislation controlling all forms of credit supplied to individuals (sole traders and partners). Premium finance facilities fall within the Consumer Credit Act.
“Contents Insurance” - a policy covering the contents of a home or other buildings against a number of different risks – e.g. furniture, furnishings, household goods, personal effects
“Contribution” – contribution is an insurance principle that applies where a risk is insured on more than one insurance policy (for example personal belongings on a travel and household policy) - the two insurers concerned may share the cost of any claim.
“Cooling off period” - the period allowed to a customer to reflect upon whether or not they which to continue with the insurance arranged for the entire period of insurance - for household insurances it is a 14 day period.
“Cover Note” - a document giving temporary evidence of cover while the policy documentation and certificate are being prepared e.g. often provided for motor insurance
“Cover/Coverage” - the insurance provided by the insurer
“Credit Checks” – Both financial and personal checks on individuals to ensure their suitability to rent a property