Glossary

Contract of adhesion is a legal concept wherein a contract is offered intact to one party by another with the stipulation that the second party accept or reject the contract in total without the opportunity to bargain over the wording.

Contract ratification indemnity is a type of political risk insurance that pays a proportion of the contractor's start-up costs that may not be recoverable from the purchaser/employer in the event that an overseas contract is not finalized for reasons outside the contractor's control.

Contract repudiation indemnity provides coverage for economic losses arising out of the unilateral cancellation of a contract as a result of direct or indirect actions of a foreign government or its agents under circumstances in which the insured is not in breach of contract.

The contra proferentem rule is a universally applied rule that ambiguities in an insurance policy will be strictly interpreted against the insurer.

Where there is more than one reinsurer sharing a line of insurance on a risk in excess of a specified retention, each such reinsurer shall contribute toward any excess loss in proportion to its original participation in such risk.

Contribution, as used in the insurance industry, is the principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss.

Contribution by equal shares is a method of apportioning loss among multiple insurers.

Contribution by limits is a method of apportioning loss among multiple insurers.

Contributory negligence is the negligence of a plaintiff constituting a partial cause or aggravation of their injury.

A controlled foreign corporation is an offshore captive whose US shareholders own more than 25 percent (50 percent for European companies) of voting control.