Definition and meaning of conventional health plan :

conventional health plan: Plan that provides all benefits and issues certificates containing the insurance company's guarantees.

(Source: Bank of America )

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Definition and meaning of conversion privilege :

conversion privilege: Right given to an insured person under a group insurance contract to change coverage, without evidence of medical insurability, to an individual policy upon termination of the group coverage. The conditions under which conversion can be made are defined in the master policy.

(Source: Bank of America )

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Definition and meaning of contingency reserve :

contingency reserve: A statutory reserve established to absorb unexpected losses. Bond insurers are required to maintain reserves based on premiums written and principal insured. The contingency reserve may be used to pay claims when losses exceed 35% of earned premium for municipal and utility first mortgage obligations or 65% of earned premium for nonmunicipal obligations.

(Source: Bank of America )

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Definition and meaning of contingency reserve :

contingency reserve: A reserve for losses in excess of those that are expected. An insurer generally contributes up to 50% of premiums earned in any year to this reserve, and amounts contributed are to remain there for 10 years, subject to transfer to the surplus account either at the end of that period or before to the extent that the loss ratio exceeds 35% in any given year. Federal income taxes on amounts in the contingency reserve are deferred as long as the funds remain allocated there and are paid when they are transferred to surplus (see tax and loss bonds).

(Source: Bank of America )

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Definition and meaning of conforming mortgages :

conforming mortgages: Mortgages of 'A' or 'prime' quality that meet GSE size requirements for purchase of guarantee.

(Source: Bank of America )

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Definition and meaning of consideration clause :

consideration clause: Stipulation that states the basis on which an insurer issues an insurance contract

(Source: Bank of America )

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Definition and meaning of Consolidate Omnibus Budget Reconciliation Act :

Consolidate Omnibus Budget Reconciliation Act (COBRA): Requires employers with more than 20 employees to make group health care coverage available for 18 months, at the employee's expense, to employees who leave the employer for any reason other than gross misconduct.

(Source: Bank of America )

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Definition and meaning of convertible term insurance :

convertible term insurance: Term insurance that offers the policyholder the option of exchanging it for a permanent plan of insurance without evidence of insurability.

(Source: Bank of America )

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Definition and meaning of coordination of benefits :

coordination of benefits (COB): Method of integrating benefits payable under more than one health insurance plan so that the insured persons benefits from all sources do not exceed 100 percent of allowable medical expenses or eliminate incentives to contain costs.

(Source: Bank of America )

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Definition and meaning of covered expenses :

covered expenses: Health care charges that an insurer will consider paying under the terms of a health insurance policy.

(Source: Bank of America )

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Definition and meaning of credit insurance :

credit insurance: Optional coverage that pays off the balance of an outstanding loan in the event you become disabled, unemployed or die. Exact coverage depends on the particular policy. Variations include credit health or disability (pays if you get sick or become disabled) and credit unemployment insurance (pays if you involuntarily lose your job). Usually offered with credit cards, auto loans and mortgages.

(Source: Bank of America )

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Definition and meaning of credit life insurance :

credit life insurance: Term life insurance issued through a lender or lending agency to cover payment of a loan, installment purchase or other obligation, in case of death.

(Source: Bank of America )

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Definition and meaning of cumulative claim rate :

cumulative claim rate: The number of mortgages of a given class originated during the same year going to claim over a given period divided by the original number of mortgages in that class.

(Source: Bank of America )

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Definition and meaning of coverage :

coverage: The percentage of the original appraised value of a home that is covered by mortgage insurance. The GSEs require that all residential mortgages they guarantee have effective LTVs of 80% or less. Mortgage insurance is the primary method of reducing the effective LTVs.

(Source: Bank of America )

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Definition and meaning of cost-of-living rider :

cost-of-living rider: An option that permits the policyholder to purchase increasing term insurance coverage. The death proceeds increase by a stated amount each year to coincide with an estimated increase in the cost of living.

(Source: Bank of America )

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Definition and meaning of co-payment :

co-payment: Partial payment of medical expenses, emergency room services, or prescription drugs required by an individual who is enrolled in a group health insurance plan. For example, a co-payment for a visit to a doctor's office might be $10.

(Source: Bank of America )

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Definition and meaning of cost containment :

cost containment: Reduction of inefficiencies in the consumption, allocation, or production of health care services. Inefficiencies can occur when health services are used inappropriately; when health services could be delivered in less costly settings; and when the costs could be reduced by using a different combination of resources.

(Source: Bank of America )

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Definition and meaning of cost index :

cost index: A way to compare the costs of similar plans of life insurance. A policy with a smaller index number is generally a better buy than a comparable policy with a larger index number.

(Source: Bank of America )

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Definition and meaning of conditional claim rate :

conditional claim rate: The number of mortgages of a given class that go to claim during a calendar year divided by the number of mortgages in that class outstanding at the beginning of the year.

(Source: Bank of America )

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Definition and meaning of approval :

approval: Signifies the legal acceptance of forms by a state when policy information is filed; Signifies the insurer's acceptance of risks as set forth in an application for insurance (as originally made or modified by the insurer); or Signifies the acceptance of a request from an applicant or policyholder for new insurance, reinstatement of a terminated policy, a policy loan, or other request.

(Source: Bank of America )

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Definition and meaning of Uberrima fides :

Latin for utmost good faith.

(Source Lloyd's )

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Definition and meaning of Utmost good faith :

Contracts of insurance and reinsurance are contracts of utmost good faith. In the event that either party fails to observe utmost good faith towards the other in regard to the negotiation of cover then the other party may avoid the contract. The duty of utmost good faith requires each party to inform the other all material facts during the negotiation of the placement, renewal or alteration of cover.

 An insured has a separate duty of good faith when making a claim under an insurance policy.

(Source Lloyd's )

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