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Insurance Glossary C - D
C
Carriers - Organizations that process claims and pay benefits in an insurance policy
Cash Value - The amount to which a policyowner is entitled if the policy is surrendered before maturity.
Certificate - A statement (or booklet) that confirms that a policy has been written and that describes the
coverage in general.
Certificate of Insurance - A legal document that indicates that an insurance policy has been issued, and
that states both the amounts and types of insurance provided.
Claim - A request for payment of the benefits provided by an insurance contract.
Coercion - An unfair trade practice in which an insurer uses physical or mental force to persuade an
applicant to buy insurance.
Coinsurance - An agreement between an insurer and insured in which both parties are expected to pay a
certain portion of the potential loss and other expenses.
Coinsurance Clause - A provision that states that the insurer and the insured will share the losses covered
by the policy in a proportion agreed upon in advance.
Comprehensive Policy - A plan that provides a package of health care services, including preventive care,
routine physicals, immunization, outpatient services and hospitalization.
Comprehensive Major Medical - A combination of basic coverage and major medical coverage that
features low deductibles, high maximum benefits, and coinsurance.
Concealment - The withholding of known facts which, if material, can void a contract.
Conditional Contract - A type of an agreement in which both parties must perform certain duties and follow
rules of conduct to make the contract enforceable.
Consideration - The binding force in a contract that requires something of value to be exchanged for the
transfer of risk. The consideration on the part of the insured is the representations made in the application
and the payment of premium; the consideration on the part of the insurer is the promise to pay in the event
of loss.
Consideration Clause - A part of the insurance contract that states that both parties must give something
of value for the transfer of risk, and specifies the conditions of the exchange.
COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986) - The law that provides for the
continuation of group health care benefits for the insured for up to 18 months if he/she terminates
employment or is no longer eligible, and for the insured's dependents for up to 36 months in cases of loss of
eligibility due to death of the insured, divorce, or attainment of the limiting age.
Consumer Reports - Written and /or oral statements regarding a consumer's credit, character, reputation,
or habits collected by a reporting agency from employment records, credit reports, and other public sources.
Contract - An agreement between two or more parties enforceable by law.
Contributory - A group insurance plan that requires the employees to pay part of the premium.
Convertible - A policy that may be exchanged for another type of policy by contractual provision, at the
option of the policyowner, and without evidence of insurability (i.e. term life changed to a form of permanent
life).
Coordination of Benefits - A provision that helps determine the primary provider in situations where an
insured is covered by more than one policy, thus avoiding claims overpayments.
Co-pay - An arrangement in which an insured must pay a specified amount for services "up front" and the
provider pays the remainder of the cost.
Countersignature - The act of signing an insurance policy by a licensed resident agent.
Coverage - The inclusion of causes of loss (perils) which are covered within a scope of a policy.
Credit Life Insurance - A special type of coverage written to pay off the balance of a loan in the event of
the death of the debtor.
Custodial Care – Care that is rendered to help an insured complete his/her activities of daily living.
Death Benefit – The amount payable upon the death of the person whose life is insured.
D
Decreasing Term – A type of life insurance that features a level premium and a death benefit that
decreases each year over the duration of the policy.
Deductible – The portion of the loss that is to be paid by the insured before any claim benefits may be paid
by the insurer.
Dependent – A person who relies on another for support and maintenance.
Disability - A physical or mental impairment, either congenital or resulting from an injury or sickness.
Disability Income Insurance – Health insurance that provides periodic payments to replace an insured’s
income when he/she is injured or ill.
Disclosure – An act of identifying the name of the producer, representative or firm, limited insurance
representative, or temporary insurance producer on any policy solicitation.
Dread (Specified) Disease Policy – A policy with a high maximum limit that covers certain diseases named
in the contract (such as polio and meningitis).
Dual Choice – A federal requirement that employers who have 25 or more employees, who are within the
service area of a qualified HMO, who pay minimum wage, and offer a health plan, must offer HMO coverage
as well as an indemnity plan.
C
Carriers - Organizations that process claims and pay benefits in an insurance policy
Cash Value - The amount to which a policyowner is entitled if the policy is surrendered before maturity.
Certificate - A statement (or booklet) that confirms that a policy has been written and that describes the
coverage in general.
Certificate of Insurance - A legal document that indicates that an insurance policy has been issued, and
that states both the amounts and types of insurance provided.
Claim - A request for payment of the benefits provided by an insurance contract.
Coercion - An unfair trade practice in which an insurer uses physical or mental force to persuade an
applicant to buy insurance.
Coinsurance - An agreement between an insurer and insured in which both parties are expected to pay a
certain portion of the potential loss and other expenses.
Coinsurance Clause - A provision that states that the insurer and the insured will share the losses covered
by the policy in a proportion agreed upon in advance.
Comprehensive Policy - A plan that provides a package of health care services, including preventive care,
routine physicals, immunization, outpatient services and hospitalization.
Comprehensive Major Medical - A combination of basic coverage and major medical coverage that
features low deductibles, high maximum benefits, and coinsurance.
Concealment - The withholding of known facts which, if material, can void a contract.
Conditional Contract - A type of an agreement in which both parties must perform certain duties and follow
rules of conduct to make the contract enforceable.
Consideration - The binding force in a contract that requires something of value to be exchanged for the
transfer of risk. The consideration on the part of the insured is the representations made in the application
and the payment of premium; the consideration on the part of the insurer is the promise to pay in the event
of loss.
Consideration Clause - A part of the insurance contract that states that both parties must give something
of value for the transfer of risk, and specifies the conditions of the exchange.
COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986) - The law that provides for the
continuation of group health care benefits for the insured for up to 18 months if he/she terminates
employment or is no longer eligible, and for the insured's dependents for up to 36 months in cases of loss of
eligibility due to death of the insured, divorce, or attainment of the limiting age.
Consumer Reports - Written and /or oral statements regarding a consumer's credit, character, reputation,
or habits collected by a reporting agency from employment records, credit reports, and other public sources.
Contract - An agreement between two or more parties enforceable by law.
Contributory - A group insurance plan that requires the employees to pay part of the premium.
Convertible - A policy that may be exchanged for another type of policy by contractual provision, at the
option of the policyowner, and without evidence of insurability (i.e. term life changed to a form of permanent
life).
Coordination of Benefits - A provision that helps determine the primary provider in situations where an
insured is covered by more than one policy, thus avoiding claims overpayments.
Co-pay - An arrangement in which an insured must pay a specified amount for services "up front" and the
provider pays the remainder of the cost.
Countersignature - The act of signing an insurance policy by a licensed resident agent.
Coverage - The inclusion of causes of loss (perils) which are covered within a scope of a policy.
Credit Life Insurance - A special type of coverage written to pay off the balance of a loan in the event of
the death of the debtor.
Custodial Care – Care that is rendered to help an insured complete his/her activities of daily living.
Death Benefit – The amount payable upon the death of the person whose life is insured.
D
Decreasing Term – A type of life insurance that features a level premium and a death benefit that
decreases each year over the duration of the policy.
Deductible – The portion of the loss that is to be paid by the insured before any claim benefits may be paid
by the insurer.
Dependent – A person who relies on another for support and maintenance.
Disability - A physical or mental impairment, either congenital or resulting from an injury or sickness.
Disability Income Insurance – Health insurance that provides periodic payments to replace an insured’s
income when he/she is injured or ill.
Disclosure – An act of identifying the name of the producer, representative or firm, limited insurance
representative, or temporary insurance producer on any policy solicitation.
Dread (Specified) Disease Policy – A policy with a high maximum limit that covers certain diseases named
in the contract (such as polio and meningitis).
Dual Choice – A federal requirement that employers who have 25 or more employees, who are within the
service area of a qualified HMO, who pay minimum wage, and offer a health plan, must offer HMO coverage
as well as an indemnity plan.
| Trout Insurance is a full line insurance agency located in Asheville, NC. Trout Insurance offers life, health, disability, Medicare supplement, long term care insurance home and auto insurance for individuals as well as college funding and retirement planning. Christopher Smith, Dave Trout, Jan Trout and Ralph Redpath are independent insurance agents with Trout Insurance. Christopher Smith specializes in group health insurance, employee benefits, insurance needs for business owners, key person disability insurance, disability buy out insurance, individual life insurance, short term health insurance, disability insurance, long term care insurance, group long term care insurance and critical illness insurance. Dave Trout specializes in life and disability insurance, Medicare supplement insurance, retirement planning for individuals and businesses, commercial business insurance and college funding. Jan Trout specializes in individual health insurance. Ralph Redpath specializes in home and auto coverage. Web site design by Christopher Smith. Agency photo by Jason Sanford. |
