CASH VALUE
The savings element of a permanent life insurance policy, which represents the policy owner’s interest in the policy.
CATACLYSM
Any great upheaval that causes sudden and violent changes, as an earthquake, war, great flood, etc. (New World)
CATASTROPHIC RISK
The risk of a large loss by reason of the occurrence of a peril to which a very large number of insured are subject.
CATASTROPHIC LOSS
Damage resulting from a catastrophe.
CATEX
An exchange through which insurers trade "standardized catastrophe units."
COINSURANCE CLAUSE
A clause requiring the insured to maintain insurance on the property at least equal to a stipulated percentage of its value in order to collect partial losses in full.
CONCENTRATION FACTOR
All companies are subject to an asset concentration factor that reflects the additional risk of high concentrations in single exposures
CONSUMER PRICE INDEX
An index of consumer prices based on the typical market basket of goods and services consumed by all urban consumers during a base period.
CONTINGENT BENEFICIARY
The party designated to receive proceeds of a life insurance policy following the insured’s death if the primary beneficiary predeceased the insured.
CONVERTIBLE TERM INSURANCE POLICY
A term life insurance policy that gives the policy owner the right to convert the policy to a permanent plan of insurance.
CORRECTIVE ORDER
An order issued by the commissioner specifying corrective actions that the commissioner has determined are required.
CREDIT RISK
A measure of the default risk on amounts that is due from policyholders, reinsures or creditors.