Car Insurance Jargon
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Cancellation clause - A provision in an insurance
contract that permits the insurer or the insured to cancel
a policy at any time before its expiration date.
Capacity - The largest amount of insurance or reinsurance
available from a company. It can also refer to the largest
amount of insurance or reinsurance available in the marketplace.
Carport - A roof that covers a driveway or other
parking area, which does not have a door in the manner of
a garage.
Cash surrender value - An amount of money received
if a policyholder surrenders an insurance policy. For most
car insurance policies this is zero, though some insurers
refund some of the premium if a policy is cancelled early.
Caveat emptor - A legal principle derived from Latin
than means "let the buyer beware."
Caveats - A condition attached to an insurance quotation.
Cede - To transfer all or part of a risk written
by an insurer to a reinsurer.
CII - An acronym for the Chartered Insurance Institute,
a body controlling professional, eithical and educational
standards in the insurance industry.
Claim - The term used to describe the process of
getting an insurance company to pay out on the policy you
bought from them.
Claims experience - The relationship of claims to
premiums for a period, usually expressed as a percentage
or ratio.
Claims reserve - The amount of money set aside by
an insurer to meet the cost of claims incurred but not yet
settled.
Code of practice - An agreement that certain professions
sign up to in which they agree to act in a certain way and
which therefore protects the consumer.
Co-insurance - An arrangement by which a number
of insurance companies cover a particular risk.
Collision damage waiver - An extra insurance premium
you may have the option to take which removes your liability
to pay any insurance excess in the event of a collision
or damage to a vehicle such as a hire car.
Commission - The percentage of the premium cost
an introducer receives.
Comprehensive cover - The most expensive form of
car insurance, that offers the most comprehensive cover.
It covers damage to others' cars and to your own as well
as losses incurred by fire and theft.
Conditional insurance - An insurance policy to
which mortgage borrowers must sign up to with the lender
in order to take out a specific mortgage. This is rarely
the case with car insurance, except sometimes with hire
cars.
Conditions - Provisions in an insurance contract
that state the rights and duties of the insured and of the
insurer.
Consequential loss - A financial loss occurring
as the result of some other loss. Also known as an indirect
loss. (Eg - Acar is destroyed in an accident. The loss of
the car is a direct loss. The loss of ongoing profit because
of the inability to continue working without a vehicle is
a consequential loss).
Consumer credit act - Act of legislation to define
the rules relating to lending money and aimed at protecting
the consumer when credit is agreed with a third party.
Contract - A legally enforceable agreement between
two parties.
Contractual liability - The terms of a contract
to which you must abide - failure to do so can incur financial
or even criminal penalties.
Cooling off period - A period allowed in certain
circumstances during which a person who has entered into
a contract usch as an insurance policymay cancel it without
incurring any penalty.
Cover - In the context of insurance, cover describes
the specific risk a given policy protects you against.
Cover note - A temporary certificate confirming
that an insurance policy is in force, used while further
information is being gathered.
Custom & Excise - A government department responsible
for the collection of duties on imports, VAT and other taxes
including Insurance Premium Tax.
