Continuity

Refers to a continuation of certain representations and warranties given by the insureds in the insurance application submitted to a prior insurer. When insureds first purchase a type of claims-made insurance from an insurer, the insurance company frequently requires the insureds to disclose all known facts or circumstances that may reasonably give rise to a future claim. Under some circumstances, the insurance company may agree not to require that disclosure from the insureds, but instead rely upon the disclosure by the insureds to the insurance company that previously issued a similar type insurance policy to the insureds. Continuity merely refers to a continuation of these representations and warranties from one insurer to the other, and does not mean there is a continuation of the same scope of coverage as was afforded under the prior insurance policy.

Continuous Contract

A reinsurance contract that does not terminate automatically but continues indefinitely unless one of the parties delivers notice of intent to terminate. Continuous contract should have an anniversary date to satisfy risk transfer requirements and notice of intent to terminate is usually required to be delivered a specified number of days (typically 90 days) prior to the anniversary date.

Continuous coverage

Insurance benefits that transfer from one health plan to another with no break in coverage or from one type of membership to another (e.g., from dependent to subscriber with a new subscriber identification number). Also called continuity of coverage.