Glossary

A captive facility is an insurance or reinsurance company, licensed under either commercial or captive insurance laws, used to provide captive insurance to insureds that may share in the facility's ownership or have no ownership position.

The Captive Insurance Companies Association (CICA) is an association of risk managers formed to educate, inform, support, and provide valuable networking opportunities to members and interested parties about captives, regardless of domicile or structure. CICA has no jurisdictional or commercial ties. Members come from a wide range of industries with almost half the membership domiciled in Bermuda, with another quarter domiciled in Vermont. CICA has joined forces with other state captive and risk management organizations to create a legislative affairs organization, the Coalition of Alternative Risk Funding Mechanisms (CARFM).

A captive management company is a firm specializing in accounting and other services for captive insurance companies, usually serving as the captive's principal representative in the domicile. The management company usually handles all necessary filings and record keeping and deals with other captive service providers such as auditors, actuaries, investment advisers, and visiting insureds.

Captive value added (CVA) refers to the financial benefit to an organization resulting from participation in a captive program as a shareholder and/or an insured. One formulaic approach to calculating CVA uses net present value (NPV) program cost comparisons to show a captive's contribution to an organization's retention ability—that is, the capacity creation effect—as well as the lower after-tax cost, compared to self-insurance or commercial insurance. The "value added" approach can also be used to recognize subjective as well as objective benefits.

A care coordination benefit is a provision included in some long-term care (LTC) insurance policies that pays consultation fees for a professional, such as a registered nurse or a medical social worker, to periodically assess and make recommendations about the enrollee's care program. The purpose of the care coordination benefit is to adjust services when and if the individual's care needs change.

Care, custody, or control (CCC) is an exclusion common to several forms of liability insurance, which eliminates coverage with respect to damage to property in the insured's care, custody, or control. Coverage for this exposure is available under other, more specific forms of insurance, such as motor truck cargo and garagekeepers insurance. In some cases, CCC has been determined to entail physical possession of the property; in others, any party with a legal obligation to exercise care with respect to property has been deemed to have that property in its CCC.

Cargo insurance is inland or ocean marine insurance covering property in transit.

The Carmack amendment is an amendment to the Interstate Commerce Act that provides that a common carrier that receives property for transport to another state or territory, the District of Columbia, or an adjacent foreign country shall be liable for any loss, damage, or injury it causes to its cargo. It makes a carrier liable, without proof of negligence, for all damage to the goods. First enacted in 1906, the amendment applies to motor carriers (UPS, FedEx, and the like), airlines, and freight forwarders as well as railroads and other sundry common carriers.

The Carriage of Goods by Sea Act (COGSA) is a statute that contains a list of 17 causes of loss for which the carrier or vessel is not liable if the carrier exercised reasonable steps to make the ship seaworthy and to handle/stow goods responsibly. COGSA also limits liability to $500 per package or customary freight unit (CFU) unless another amount is specifically mentioned in the bill of lading. That amount, however, can never be greater than the actual loss incurred.

In an insurance context, a carrier is an insurance or reinsurance company that insures or "carries" the insurance or reinsurance.