Cancellation to Coverage Amount Definitions

A B C D E F G H I J K L M N O P R S T U V W Y
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Cancellation: This is the termination of an insurance contract according to the terms of the contract. It may be executed by the insured or the insurer.
Cash Accumulation: Certain policies have features allowing cash accumulation that may be used by the insured person who does not die. For example, a policy might accumulate cash values that would be payable to the policy owner when she or he reaches a certain age or after the policy has been in force for a specified number of years.
Cash Surrender Value: The amount of money that the insured receives when he or she surrenders their policy. It is calculated using the terms specified in the contract usually less any surrender charges and loans.
Cash Value: Amount of cash that accumulates within the policy according to the provisions of the policy. It is the total of the premium paid, less the cost of insurance, plus adjustments for interest or investments.
Child Rider: Provides life insurance coverage for any child, stepchild or legally adopted child of the insured, subject to certain age requirements. The premium is usually a flat amount and provides coverage for any number of children.
Claim: Written request made by the insured or the beneficiary for the insurance company to pay benefits according to the provisions of the insurance policy.
Clause: A part of the insurance policy the encompasses various provisions of the policy such as exclusions, responsibilities of the carrier or insured and conditions of coverage.
COBRA (Consolidated Omnibus Budget Reconciliation Act): Legal regulations requiring employers of 20 or more employees to offer continued group insurance to an employee who is leaving their employ or to the dependents of that employee.
Collateral Assignment: Using the insurance policy or its value to secure a loan.
Collusion: When two or more persons join together to commit insurance fraud.
Concealment: Failure to disclose a fact that could affect the issuance or premium of a policy or the settlement of a claim.
Conditional Receipt: A temporary insurance agreement that, subject to certain conditions, allows an applicant to obtain temporary insurance coverage during the issuance of his or her policy.
Contestable Period: A period of time, usually two years, during which the insurance company can declare a life insurance contract null and void due to misrepresentation or concealment by the insured during the application and issuance process. Once the stated constable period has elapsed, the insurance company cannot cancel the policy for any reason other than non payment of premiums.
Contingent Beneficiary: A secondary beneficiary designated by the insured to received the policy benefits in the event that the primary beneficiary predeceases the insured.
Contract: A legally enforceable agreement between two parties to provide or perform certain specified things.
Conversion: A opportunity provided in certain policies whereby an insured can change his type of insurance coverage usually from term insurance to some form of permanent insurance usually without showing evidence of insurablility.
Coverage Amount: The face amount of the policy or the amount specified as that which will be paid to the beneficiaries upon the death of the insured.