Insurance Dictionary

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Cancellation
(1) Cancellation of a contract in view of damage to the rights of any of the contracting parties. In insurance terms, the general conditions of the policy often include this possibility for the insurance company following a claim and with the corresponding notification to the insured and return of the part of the premiums not used. This possibility is also established for the insured who, in this case, is not entitled to a refund of the premiums paid.
(2) Termination of the contractual relationship between the insured and the insurer.
Cession
Transferral of part of the policy portfolio of an insurance company (assignor) or another (asignee), the latter taking over the rights and obligations of the assignor regarding these policies.
Claim
(1) Request or complaint aimed at a right being recognised or at authorisation being given to exercise that right.
(2) Declaration of opposition to something considered unfair.
(3) The occurrence of damaging consequences covered by the policy. The damages arising from the same original cause form a single claim.
Claim settlement
Action by which the financial consequences of a claim are quantified and paid as appropriate, in line with that established in the policy.
Claims frequency
Average number of claims made through a policy or group of policies over one year.
Claims inspector
Person who processes and decides on claims and studies the loss ratio of his/her area of action, in some cases paying all or part of the compensation.
Class
This is the type of insurance that combines a group of common covers.
Clause
Contractual agreement indicated in the terms of the policy and that governs the relationship between the parties or amends, adds to or explains certain information contained in the contract.
Coinsurance
Insurance in which two or more insurance companies are involved, covering the same risk at the same time and at the same premium rate to share and spread the risk, as each company covers only a part of the total risk. This is often used for risks that, due to their size, cannot be assumed by a single insurance company.
Through a coinsurance contract, the share of each insurance company in the risk is established, each one receiving the proportional part of the premium and establishing the compensation to be paid by each one in the event of a claim.
Normally only one of the companies involved is responsible for issuing the contract, which is known as the leading company.
This is different to reinsurance, in which the total risk is assumed by one of the insurance companies involved, which is subsequently responsible for spreading the risk on its own account.
Coinsurer
Insurance company taking part in coinsurance
Collector
Person responsible for collecting receipts. His/her job is often remunerated through the collecting commission.
Combined policy
That which provides a range of cover for risks of a different nature but with the common circumstance of involving the same insured party.
Comisión Liquidadora de Entidades Aseguradoras (CLEA)
Spanish public body that takes on the role of liquidator in the event of the winding up of insurance companies under government supervision. It was created in Spain by Royal Decree-Law dated 11-6-1986 and regulated by Regulation dated 22-8-1986.
Commission
(1) Order or power that a person gives in writing to another to undertake a job or amendment in a business.
(2) Remuneration system in which the insurance company pays the agent a certain amount for the insurance contract obtained through his/her intervention, normally calculated as a percentage of the production obtained.
Compensation
In insurance terms, this is the sum that the insurance company must pay the insured in compensation for the damages caused by an accident to the limit established in the insurance contract. It is, therefore, the return for payment of the premiums by the insured. Compensation involves the submission of a sum of money equivalent to the value of the damages or the replacement of the items damaged, where the insured agrees as such. In both cases, the value of that submitted to the insured may not exceed that of the damaged object before the damage was caused.
Completion of the contract
Legal moment in which the agreement of wishes produces the effects that the Law or the parties have determined. According to the Spanish Commercial Code, "Contracts are completed through mere agreement and, from that moment, enforce not only compliance with that agreed but also all the consequences arising from good faith, usage and the Law?.
Conditions
Specific issues governing the contents of an insurance contract.
Consolidated rights
These refer to contributions and their associated profits that belong to a participant in a Pension Plan.
Consorcio (Consorcio de Compensación de Seguros)
Insurance entity attached to the Directorate General for Insurance (Ministry of Economy and Finance), the purposes of which include:
- Cover of certain extraordinary risks.
- Cover of events derived from terrorism.
- Management of certain issues regarding Compulsory Motor Liability Insurance.
It is mainly financed through contributions from the holders of any policies that may include risks covered by this entity.
Contents
The group of items that, characteristic of the home, are found inside the home designated under the terms of the policy and are the property of the Insured, such as furniture, including electrical appliances, clothing and household furnishings, provisions, personal items and other equipment and pets, except any items not insured or excluded.