Glossary

In the financial services industry, convergence is the coming together of credit institutions and insurance companies to develop products that combine the elements of each industry sector.

Converted losses is a term used with retrospectively rated insurance programs: ratable losses times a loss conversion factor.

Convertible refers to a policy that may be changed to another form without evidence of insurability.

Convertible term life insurance offers the policyholder the option of exchanging the term policy for some form of permanent life insurance without evidence of insurability.

Named for Peter Cooke of the Bank of England, the Cooke ratio is the ratio of commitments (assets weighed by the risk of default) to total assets.

A cooperation clause is a policy provision compelling the insured to assist an insurer in defending claims under a policy.

A cooperative controlled insurance program (CO-CIP) describes a controlled insurance program in which the project owner includes the prime or general contractor in identifying the project risks and designing the program's insurance coverages.

Cooperative insurance pertains to fraternal societies, employee associations, industrial associations, trade unions, or other mutual associations.

Coordinated Advertising, Rate and Form Review Authority (CARFA), which was proposed by insurance regulators in 2000, would create a "one-stop" rate- and form-filing process for property-casualty (P&C) insurers in an effort to speed the rate at which products can be brought to market.

Coordination of coverage is the process of reviewing and possibly modifying the scope or nature of coverage provided by an insured's various liability policies to eliminate gaps or overlaps.