Remuneration based or conditioned upon future occurrences or conclusions, or results of services to be performed.
Insurance Encyclopedia
Contingent Fund
A reserve to cover possible liabilities resulting from an unusual happening.
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A fund set aside for possible losses incurred as a result of a rare event.
Contingent funding
See: Contingent Capital.
Contingent insurance
The term contingent insurance refers to a policy that is contingent on the absence of other insurance. For example, the 1973 commercial general liability (CGL) policy stated that it provided “primary insurance, except when stated to apply in excess of or contingent upon the absence of other insurance.… When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess, or contingent, the company shall not be liable [for more than a proportionate share].” (Emphasis added.) In 1986, the phrase “upon the absence of other insurance” was taken out. No change in coverage was intended, however. In modern terms, contingent insurance refers to a policy that has an escape-type other insurance provision saying that it does not apply if there is another policy providing coverage.
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The term contingent insurance refers to a policy that is contingent on the absence of other insurance. For example, the 1973 commercial general liability (CGL) policy stated that it provided “primary insurance, except when stated to apply in excess of or contingent upon the absence of other insurance.… When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess, or contingent, the company shall not be liable [for more than a proportionate share].” (Emphasis added.) In 1986, the phrase “upon the absence of other insurance” was taken out. No change in coverage was intended, however. In modern terms, contingent insurance refers to a policy that has an escape-type other insurance provision saying that it does not apply if there is another policy providing coverage.
Contingent Interest
An insurable interest that attaches during the period the property is exposed to risk.
Contingent liability
US: Coverage for losses to a third party for which the insured is vicariously liable. Contingent liability can be assumed—for example, for losses arising from product or service failure, where the insurer has assumed liability by providing a performance warranty.
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MEDICAL,USA: Legal responsibility of individuals, corporations, or partnerships, for injuries or accidents caused by persons (other than employees) for whose actions or omissions the individuals, corporations, or partnerships are responsible.
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US: Liability arising out of work done by independent contractors for a firm. A firm may be liable for the work done by an independent contractor if the activity is illegal, the situation does not permit delegation of authority, or the work is inherently dangerous.
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Liability imposed on a business entity (individual, partnership, or corporation) for acts of a third party for which the business entity is responsible.
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Liability imposed upon one party because of accidents caused by persons (other than employees) for whose acts the first party is responsible through the operations of applicable laws.
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UK: Liability that arises in a secondary way as in the case of vicarious liability. See CONTINGENT LIABILITY COVER.
Contingent liability (Liability)
A liability for which a person, partnership, or company may be responsible, even though the liability was caused by non-employees.
Contingent liability cover
Fallback cover that does not replace a primary cover but is triggered if the intended primary cover is non-existent or ineffective. An employer normally relies upon an indemnity under the employees’ car insurances, when employees use their cars on his business. If an employee’s policy is invalid, the employer’s indemnity fails but the motor contingent liability section of his public liability policy fills the gap. Others who need contingent liability cover include principals relying on cover arranged by contractors and hire car operators relying on insurance arranged by hirers.
Contingent Libility
A contingent liability is a financial obligation that is not certain but contingent on certain factors. An example of a contingent liability is a lawsuit that has been filed against a company or an individual. Until the suit is resolved, there is no certain amount the defendant is responsible for. The existence of contingent liabilities should be disclosed to insurance companies during the underwriting process.
Contingent payee
Individual who receives life insurance proceeds that are still payable under a settlement option at the time of the primary payee’s death. Also called successor payee.