Glossary

Cancel and rewrite refers to an insurer's cancellation and reissuance of the same policy.

Candidate analysis is a restricted form of optimization risk modeling in which only a finite number of prespecified decision options are considered, and the best set among those options is determined through the analysis.

A canine liability exclusion is a homeowners policy exclusion that precludes personal liability and medical payment losses for canines described in the endorsement schedule that are owned by or in the care, custody, or control of an insured.

Cannabinoid is any one of a large number of chemical compounds that act on cannabinoid receptors in the brain.

Cannabis is any part of the plant Cannabis sativa L. or derivative thereof with a delta-9 tetrahydrocannabinol concentration greater than 0.3 percent on a dry weight basis.

A cap is an agreement obligating the seller to make payments to the buyer, with each payment based on the amount by which a reference price (or level) or the performance (or value) of one or more underlying interests exceeds a predetermined number, sometimes called strike rate or strike price.

Capacity refers to the largest amount of insurance or reinsurance available from a company or the market in general.

In captive insurance, capital has one of three different meanings: the amount initially needed to set up a captive or the initial amount paid in; the total of this paid-in capital plus other forms of capital, like letters of credit; or the sum of these two plus accumulated surplus.

Capital adequacy refers to the funding required of a risk financing vehicle, such as a captive insurance company, to meet the liabilities insured.

Capital allocation is the actual deployment of capital to different business segments.