Glossary

A conditional payment clause is a provision in a contract, such as a construction contract, that conditions payment on some other event. For example, a general contractor may include a clause that conditions its payment of subcontractors on receiving payment from the project owner. States vary with respect to the enforceability of conditional payment clauses.

Conditional vesting refers to a vesting agreement in a contributory pension plan in which the vested benefit is predicated on nonwithdrawal of the insured's contributions.

The Condominium Association Coverage Form (CP 00 17) is the Insurance Services Office, Inc. (ISO), commercial property coverage form that covers buildings and personal property owned by condominium associations. It is very similar to the building and personal property coverage form, except that the language is tailored to address the needs of condominium associations.

Confidence intervals refer to the statistical concept expressing the degree of confidence that, for instance, total losses will be below or above a given amount in any specified period, typically 1 year. The confidence level, or percentage, is interpreted as the long-run probability that the estimates will hold true over many stimulated estimate periods.

Confiscation, expropriation, nationalization (CEN), and deprivation (CEND) insurance is political risk coverage for businesses with an ownership interest in property abroad to cover loss from government nationalization of the property or other action by the government that effectively deprives the insured of the property or restricts its operations. Coverage may be structured to insure such current assets as bank accounts, intercompany or bank loans, accounts receivable, inventory, retained earnings, supplies, and work in progress. Deprivation coverage, which insures against the risk of a government action preventing use of the asset (such as denying a permit to run a plant), can be added to the basic CEN policy.

Conflict of laws refers to the inconsistency or difference between the laws of different states. This is that part of the law of each state that determines what effect is given to the fact that the case may have a relationship to more than one state.

A connected vehicle (i.e., automobile) is equipped with Internet access that connects to outside vehicles, devices, networks, and services. This technology can be utilized to improve vehicle safety, decrease accident frequency, enhance vehicle efficiency, and reduce commute times.

ConsensusDOCS is a family of standard construction contract documents developed and endorsed by a cross section of industry organizations representing owners, designers, general contractors, subcontractors, and sureties. Unique to this family of documents is the tri-party agreement (ConcensusDOCS 300), which establishes a team of decision makers representing the owner, general contractor, and designer who jointly make decisions in the best interest of the project. The 300 document includes reciprocal indemnity obligations whereby each party agrees to indemnify the others to the extent of the indemnifying party's negligence. Most other standard contracts place a unilateral indemnity obligation on the contractor, with the possible exception of the owner's obligation to indemnify for damages arising out of the hazardous substances found on the jobsite. The inclusion of indemnity obligations on the part of the architect/engineer is particularly unique and sets ConsensusDOCS 300 apart from most other standard construction contracts. The Associated General Contractors of America (AGC) administers and sell these contracts.

A consent judgment is a judgment entered with the consent of the defendant. An insurer that wrongfully refuses to defend its insured runs the risk that the insured will allow a consent judgment to be entered against it. After a consent judgment is entered against the insured, an insurer later found to be in default of its defense obligation may be bound to pay the consent judgment by its terms.

A consent to settlement clause is a provision (also known as the "hammer clause" and "blackmail settlement clause") found in professional liability insurance policies that requires an insurer to seek an insured's approval prior to settling a claim for a specific amount. However, if the insured does not approve the recommended figure, the consent to settlement clause states that the insurer will not be liable for any additional monies required to settle the claim or for the defense costs that accrue from the point after the insurer makes the settlement recommendation.