Glossary

The cash surrender value is the amount of cash available to the insured in an individual life insurance policy when the insured cancels and surrenders the policy.

Casualty Claim Law Associate (CCLA) is a claims law specialist designation offered by the American Educational Institute (AEI).

Casualty Claim Law Specialist (CCLS) is a claims law specialist designation offered by the American Educational Institute (AEI).

Casualty insurance is primarily concerned with the losses caused by injuries to persons and legal liability imposed on the insured for such injury or for damage to property of others.

A catastrophe is a severe loss characterized by extreme force and/or sizable financial loss.

A catastrophe bond is a derivative debt investment vehicle issued by insurers and reinsurers designed to raise investor capital to cover catastrophic loss events.

Catastrophe equity put refers to a contract that allows an insurer to exercise an opportunity, but not the obligation, to exercise an option at a specific index value in the event that losses (the index value) exceed a predetermined level, thus requiring additional equity capital.

A catastrophe plan is a prepared strategy detailing how a particular organization will respond to a disaster.

A catastrophe policy is the name previously used for major medical insurance.

Catastrophe reinsurance is a form of reinsurance that indemnifies the ceding company for the accumulation of losses in excess of a stipulated sum arising from a single catastrophic event or series of events.