contingency reserve: A statutory reserve established to absorb unexpected losses. Bond insurers are required to maintain reserves based on premiums written and principal insured. The contingency reserve may be used to pay claims when losses exceed 35% of earned premium for municipal and utility first mortgage obligations or 65% of earned premium for nonmunicipal obligations.
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consideration clause: Stipulation that states the basis on which an insurer issues an insurance contract.
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conforming mortgages: Mortgages of ‘A’ or ‘prime’ quality that meet GSE size requirements for purchase of guarantee.
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conditional claim rate: The number of mortgages of a given class that go to claim during a calendar year divided by the number of mortgages in that class outstanding at the beginning of the year.
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computer insurance: Covers computer equipment and peripherals beyond the normal coverage provided in homeowner’s insurance policies. Usually, homeowner’s policies only cover up to between $1,000 and $3,000 in computer equipment. With more people owning expensive computers and peripherals, and even using them for home-based businesses, riders and separate policies are becoming more popular. Some policies [...]
comprehensive medical expense insurance: Insurance that provides coverage, in one policy, for basic hospital expense and major medical expense.
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comprehensive insurance: The part of an auto insurance policy that pays out in the event of extensive physical damage (known as the totaling of a car) or theft of the car.
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combined ratio: The sum of the loss ratio plus the expense ratio plus the policyholder dividend ratio.
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combination plans: Life insurance policies that combine features of term and whole life policies.
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collision insurance: The part of an auto insurance policy that pays for the repair of a car after a crash.
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