Glossary

COPE is an acronym that stands for the four property risk characteristics an underwriter reviews when evaluating a submission for property insurance: construction, occupancy, protection, and exposure. Construction refers to the primary materials and approach used for the structure (e.g., frame, masonry, masonry veneer, superior construction, mixed—masonry/frame). Occupancy is how the building is being used for commercial property and whether it is owner-occupant or renter-occupied for homeowners and the number of families for which the building is designed. Protection refers to the level of fire protection for the property, such as the quality of the responding fire department, including whether it is paid or volunteer, adequacy of water pressure and water supply in the community, distance of the structure to the nearest fire station, quality of the fire hydrant, and the distance of the structure to the nearest hydrant). Exposure evaluates the risks of loss posed by neighboring property or the surrounding area, taking into consideration what is located near the property, such as an office building, a subdivision, or a fireworks factory).

The core capital is the statutory capital of a sponsored captive, as distinct from the capital and surplus available to support the underwriting of risk in a captive cell.

Corporate counsel is an in-house attorney or an outside law firm that handles corporate matters for a business client.

Corporate governance is a system specifying the division of duties, rights, and responsibilities among various participants in a corporation, such as the board of directors, the various committees within the board of directors, operating managers, and shareholders.

A corporate override agreement is an arrangement between an entity or corporation (usually large) and an auto rental company for employees of the corporation to use the rental company for all or most of its corporate needs in exchange for certain concessions in rental contract provisions.

Corporate reimbursement coverage can be found under a directors and officers (D&O) liability policy covering the corporate organization's obligation to indemnify its directors and officers for claims resulting from their acts in conjunction with the organization.

A corporation is an "artificial person," created under the laws of a given state.

Correlation is the extent to which multiple risk profiles move in relation to each other.

A corridor deductible is a deductible applied to an excess loss layer, calculated as a percent of the loss above the attachment point or as a per occurrence or aggregate dollar amount.

A corridor self-insured retention (SIR), also known as a "bikini deductible," is a self-insured layer, separating the primary layer of risk—whether insured, self-insured, or funded in a captive—from the layer immediately excess of the primary.