Cross liability coverage

In the event of a claim by one insured for which another insured covered by the same policy may be held liable, this endorsement covers the insured against whom the claim is made in the same manner as if separate policies had been issued. However, it does not operate to increase the insurance company’s overall limit of liability.

Cross purchase

Arrangement of buy-sell arrangements made by business owners while living, which in the event of an owner’s death, binds the shareholders or partners to purchase the deceased’s interests in the business.
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A form of business insurance in which each party to a mutual agreement (usually to buy out a disabled or deceased co-owner) insures each of the other parties.

Cross purchase agreement

Buy-sell contract that is often funded with life insurance policies owned by each business principal on the lives of all other business principals.
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A binding buy-sell agreement usually used with a partnership in which each partner agrees to purchase the business interest of a deceased or disabled partner.

Cross-assignment

A method used in partnership insurance whereby each partner takes out a policy on his own life for the amount required, pays the premium himself and assigns the policy to his partners in order to put the money into their hands on his death or retirement. Any gain under the policy is subject to capital gains tax.

Crossover claim

Bill for services rendered to a patient receiving benefits simultaneously from Medicare and Medicaid or from Medicare and a Medigap supplemental plan. Medicare pays first and then determines the amounts of unmet Medicare deductible and coinsurance to be paid by the secondary insurance carrier. The claim is automatically transferred (electronically) to the secondary insurance carrier for additional payment; also known as claims transfer.