Glossary

A controlled insurance program (CIP) is where one party procures insurance on behalf of all (or most) parties performing work on a construction project or on a specific site. The coverages provided under a CIP vary based on the goals of the program. If the primary driver of the program is cost savings, it will almost certainly include workers compensation and general liability. If consistency of coverage is the primary driver, a general liability only wrap-up is common, including both primary and excess layers. Professional liability and pollution liability are also sometimes included in a wrap-up.

A controlled master insurance program is a multinational insurance program wherein the coverage terms and conditions apply on a blanket basis to all of the insured's international operations. Local underlying insurance policies are issued overseas to support the centralized program. Unlike global insurance programs, master insurance programs for US multinationals do not typically include the United States in their coverage territory; a separate domestic program is usually arranged for them.

Controlled unrelated business refers to risks that are not owned by the captive shareholder but, because of an existing business affiliation—for example, a franchise or joint venture relationship—the owner of the captive exercises risk management control over the risk.

Controlling is a function of the risk management process that involves monitoring to verify that actual performance matches the plans and taking corrective actions if needed.

The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) of 2003 is a federal law regulating the use of unsolicited emails for marketing purposes and providing causes of action against violators. Such emails are generally prohibited by CAN-SPAM unless they contain correct header information, a physical address for the mailer, and an opt-out mechanism for recipients. Legal liability in connection with CAN-SPAM violations is ordinarily excluded under standard general liability policies.

Control Technique Guidelines are a series of Environmental Protection Agency (EPA) documents designed to assist states in defining reasonable available control technology (RACT) for major sources of volatile organic compounds (VOCs).

Subrogation rights that have been modified between two parties by the terms of a contract entered into by them are conventional subrogation. Conventional subrogation is necessarily narrower in scope than subrogation under common law (or equitable subrogation) because a contract cannot expand subrogation rights, only restrict them. An example of conventional subrogation is the agreement of contracting parties to waive their rights of recovery against each other to the extent to which insurance is being maintained on the exposures for which the parties might otherwise incur liability.

A convention blank is a report form developed by the National Association of Insurance Commissioners (NAIC) and required by most states for reporting annual financial results of an insurance company. Owners of captive insurance companies usually consider completing these reports an onerous burden.

A convention statement is the annual report format developed by the National Association of Insurance Commissioners (NAIC) and adopted by member states as the standard for all commercial insurers. Convention statements are filed by an insurer in its domicile and copied to the NAIC for Insurance Regulatory Information System (IRIS) ratios and risk-based capital calculations to be published.

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. It is also concurrent movements of the capital and insurance markets creating structured derivative securities from event risk cash flows and using customized insurance contracts as hedges to diversify financial portfolios heretofore managed by derivative securities.