Glossary

Common law defenses are defenses to suits for liability claims based in common law.

Common law liability is responsibility imposed on a party by law based on custom, as opposed to liability imposed by statute.

Common policy conditions are the part of the insurance policy typically relating to cancellation, changes in coverage, audits, inspections, premiums, and assignment of the policy.

A communicable disease is spread from one person to another either by direct transmission of bacteria or viruses between the carrier and infected person or through a vector, such as food contaminated by the carrier and consumed by the infected person.

A communicable diseases exclusion is an exclusion found within a substantial minority of physicians professional liability insurance policies that precludes coverage for claims caused by the transmission of communicable diseases.

Community property is a law (which applies in only a minority of states) stipulating that at the time of divorce, spouses are each entitled to one-half of the total earnings and property acquired during marriage.

Community rating refers to rating based on the experience of a community in which the insureds reside, with reference to age, sex, occupation, or health.

A community rating system (CRS) is a voluntary program for the National Flood Insurance Program's (NFIP's) participating communities.

Commutation usually refers to the cancellation or dissolution of a reinsurance contract in which there are profits or losses to be allocated.

A commutation agreement is an agreement between a ceding insurer and the reinsurer that provides for the valuation, payment, and complete discharge of all obligations between the parties under a particular reinsurance contract.