Glossary

A certificate of reinsurance is a record of reinsurance coverage pending replacement by a formal reinsurance contract, which is usually a facultative certificate.

A certified act of terrorism is a terrorist act that is eligible for coverage under the Terrorism Risk Insurance Act (TRIA). Such acts are certified by the Secretary of the Treasury, applying criteria spelled out in TRIA.

Certified Risk Manager (CRM) is a designation awarded by The National Alliance upon the successful competion of five risk management courses.

Cession is the portion of insurance transferred to a reinsurer by the ceding company.

A cession number is a number assigned by an underwriting office to identify reinsurance premium transactions.

A cession statement is a periodic statement of subject premiums and the losses and expenses incurred under the reinsured policies, provided by the ceding company to a reinsurer.

Cestui que vie refers to the person on whose life contingency an insurance contract is based.

A chameleon carrier is a trucking company that, if cited or closed down by the Federal Motor Carrier Safety Administration (FMCSA), generally for a marginal safety record or a tenuous financial situation, quickly changes its name and address and restarts operations.

The change of beneficiary provision is a life insurance policy provision that permits the owner of the policy to change beneficiaries at will unless a beneficiary has been designated as irrevocable, which is rarely the case.

Channeling is a program in which a hospital and its affiliated physicians (i.e., physicians employed by the hospital and independent contractor physicians who have admitting privileges) are insured under a master medical malpractice policy issued by one insurer.