Glossary

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.

Cost and freight (C and F) is one of several standard terms of sale for exports and imports.

Cost, insurance, and freight (CIF) is one of several standard terms of sale for exports and imports.

The cost of debt is the after-tax value of the rate of return paid to the creditor.

Cost of risk (COR) is the total cost of managing risks and losses incurred by an organization. Total COR is the sum of all aspects of an organization's operations that relate to risk, including retained (uninsured) losses and related loss adjustment expenses (LAEs), risk control costs, insurance and other risk transfer costs, and administrative costs.

Cost of suit coverage is coverage for defense of suits that fall within a self-insured retention (SIR) or deductible where the basic policy does not provide the defense.

Counseling liability coverage provides protection for claims arising from counseling activities.

A counsel selection provision is sometimes found in professional liability insurance policies and gives the insured the right to select or approve defense counsel if a claim is made against the insured during the policy term.