Glossary

A coverholder is a company authorized by a managing agent to bind coverage on behalf of a syndicate. In the United States, coverholders may be called managing general agents or managing general underwriters. A service company is a coverholder that is a wholly owned subsidiary of either a Lloyd's managing agent or a managing agent's holding company. All coverholders must comply with local insurance regulations and Lloyd's rules. A coverholder operates under a binding authority, an agreement in which the managing agent delegates authority to the coverholder to bind specified types of coverages. The contract may authorize the coverholder to perform additional tasks, such as collecting premiums, issuing policy documents (including endorsements), or settling claims. The coverholder may not exceed the authority outlined in the agreement regarding classes of business, excluded businesses, excluded coverages, territorial limitations, maximum limits of liability, or sums insured. It must also issue and maintain the types of documentation specified in the contract and meet any stated time requirements. A coverholder may operate under binding agreements with multiple syndicates at a time.

One of the three theories typically used to determine the number of "occurrences" under an occurrence-based liability policy that looks to the underlying root "cause" of the injuries or damages. Under this theory, the singular underlying cause is considered a single occurrence regardless of the number of claimants. For example, if the root cause of injuries to multiple claimants was the company's manufacture of a defective product, coverage would be restricted to a single occurrence. The other two tests typically used to determine the number of occurrences are the triggering event and effect theories.

Chain of title, in the oil and gas context, refers to the ordered, historical sequence of recorded conveyances, reservations, and encumbrances affecting ownership of a specific mineral or leasehold interest in real property, beginning with the original source of title, such as a sovereign grant or patent, and continuing to the present holder. In the oil and gas industry, examining the chain of title—typically through title opinions and abstracting—verifies legal ownership, identifies defects or gaps, and confirms the extent of rights (e.g., working interest, royalty interest, easements) necessary for leasing, drilling, and production operations.

Claim mapping is the process of identifying, organizing, and linking the key elements of an insurance claim to determine how the claim should be evaluated, handled, or paid. Common links include the loss event, policy provisions, coverages, exclusions, damages, parties, and supporting evidence. Claim mapping is often used to clarify which facts correspond to specific policy terms, coverage issues, claim tasks, or litigation points, helping insurers, adjusters, and counsel assess liability, coverage, exposure, and next steps.

Classic car insurance is a specialized type of auto insurance designed for older, collectible, antique, vintage, or historically significant vehicles. These autos are typically driven on a limited basis rather than used for everyday transportation. Unlike standard auto insurance, classic car coverage generally uses an agreed-value or stated-value approach, reflecting the vehicle's collectible worth, condition, restoration, rarity, and market demand. These policies may include mileage limits, storage requirements, eligibility rules for vehicle age and condition, and restrictions on regular commuting or commercial use.

The Comprehensive Loss Underwriting Exchange (CLUE) is a proprietary consumer reporting database maintained by LexisNexis Risk Solutions that collects and stores insurance claims histories for individuals and properties for a given period, typically 7 years. Insurers use CLUE reports to ascertain the history of the property during underwriting to assess risk, verify prior losses, and help determine policy eligibility, coverage terms, and premium rates for homeowners and auto insurance. Consumers are advised to request a copy of their report, normally available from their homeowners insurance agent, to get this information on a prospective home and dispute any inaccuracies.

A condominium is a form of property ownership in which an individual owns a specific unit within a multi-unit building or complex, while also sharing ownership of common areas with other unit owners. Common areas would include hallways, roofs, and amenities. In the insurance context, coverage is typically divided between a master policy held by the condominium association, which covers common elements and sometimes parts of individual units, and an individual unit owner's policy, which protects personal property, improvements, and liability within the unit.

Cooperative, in an insurance context, refers to a type of insurance organization owned and governed by its policyholders (members), who share in the risks and benefits of the enterprise. A cooperative insurer is an insurance organization in which members typically have voting rights, receive dividends or premium refunds based on financial performance, and participate in decision-making processes with the primary objective of providing coverage at cost rather than generating profits for external shareholders.

A claims-made coverage trigger requiring that a claim be both made against the insured and reported to the insurer during the policy period for coverage to apply is called a claims-made and reported provision.