A secondary beneficiary, named to receive the benefits of the policy if the primary beneficiary is deceased at the time of payout.
Insurance Encyclopedia
Contingent business income (interruption)
See: Business income, dependent properties.
Contingent Business Interruption
See: “Business interruption, contingent business interruption.”
Contingent business interruption insurance
Term describing business interruption insurance extensions to cover external dependencies, e.g. suppliers.
Contingent Capital
See: “Risk Transfer, ART Instruments, Contingent Surplus Notes (Contingent Capital).”
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UK: A post-loss funding method based on an agreement between a (re)insurer and a bank (or other investor), whereby the latter will provide a loan or equity capital after the trigger event, e.g. windstorm, has occurred. The bank/investor charges a commitment fee for their pre-agreed standby capital. Contingent capital is less costly than conventional (re)insurance in fee terms if the trigger event never occurs. See CATASTROPHE EQUITY PUTS; CONTINGENT SURPLUS NOTE.
Contingent commission
an amount payable to a broker or ceding company, in addition to the normal percentage commission, calculated as a percentage of the insurer’s or reinsurer’s net profit on the business after allowing for overheads; also known as profit commission.
Contingent commission (Reinsurance)
A commission based on the net profit taken from a reinsurance treaty, paid to the ceding company in addition to the usual commission.
Contingent credit
See: Contingent Capital.
Contingent fee
See: contingency fee.
Contingent Fees
Remuneration based or conditioned upon future occurrences or conclusions, or results of services to be performed.