Glossary

A contestable clause is the portion of a life insurance policy setting forth the conditions under which an insurer may contest or void the policy.

A contingency fee is a fee arrangement between a plaintiff and their attorney in which the plaintiff agrees to pay the attorney a stated percentage (most often, although not always, one-third) of any judgment rendered or settlement negotiated by the attorney as a result the plaintiff's lawsuit.

A contingency plan documents actions to be taken to address the occurrence of an event or disaster that would likely disrupt an organization's operations.

Contingency planning is the process of developing and embedding crisis management protocols in an organization in advance of crisis conditions.

Contingency reserve is the reserve in excess of legal requirements to provide for unexpected contingencies.

The contingent annuitant is the secondary beneficiary to an annuity policy.

The contingent beneficiary is the secondary beneficiary who receives policy benefits if the primary beneficiary predeceases the named insured under a life insurance policy.

Contingent commissions are paid by an insurer or reinsurer to an insurance intermediary and are based on the profitability of the business that the intermediary placed with the insurer or reinsurer. These programs reward intermediaries for placing a large volume of business likely to suffer lower than average losses with the insurer (and maintaining that business). The purpose of contingent commissions is to provide an incentive to place a substantial book of business with the insurer or reinsurer and provide the insurer or reinsurer with "frontline" underwriting, administration, and risk control assistance for that book of business. As they may conflict with representing the best interests of policyholders, the practice of accepting contingent commissions by insurance brokers is somewhat controversial. Contingent commissions are not considered illegal or, given proper disclosure, unethical.

Contingent insurance refers to a policy that is contingent on the absence of other insurance. For example, the 1973 comprehensive general liability policy stated that it provided "primary insurance, except when stated to apply in excess of or contingent upon the absence of other insurance .... When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess, or contingent , the company shall not be liable [for more than a proportionate share]." [Emphasis added.] In 1986, the phrase "upon the absence of other insurance" was taken out. No change in coverage was intended, however. In modern terms, contingent insurance refers to a policy that has an escape-type other insurance provision saying that it does not apply if there is another policy providing coverage.

Contingent liability is coverage for losses to a third party for which the insured is vicariously liable. Contingent liability can be assumed—for example, for losses arising from product or service failure—where the insurer has assumed liability by providing a performance warranty.