A clause giving both parties to marine open covers the right to give 30 days’ notice of cancellation. Where war and strike risks are covered, insurers may give seven days’ notice, (in some cases less), of cancellation without disturbing the tenure of the open cover itself. When the clause is invoked, shipments that have gone or will go forward before the notice expires remain covered until arrival. Ca clauses also appear in floating policies.
Insurance Encyclopedia
Cancelling Returns only
A provision found chiefly in Marine Hull reinsurance that no return of premium will be allowed except where the policy is cancelled.
Cancelling Returns only, Reinsurance
Refer: “Reinsurance, Cancelling Returns Only”
Cancer Insurance
The Policy is issued only to the members of the Indian Cancer Society. The cover is for medical/surgical expenses incurred for the treatment of cancer in respect of insured person or spouse. If any of these first contracts cancer, the Policy is extended to such person and ceases to be applicable to the other person.
Cancer registrar
Individual who captures a complete summary of the history, diagnosis, treatment, and disease status for every cancer patient. Registrars’ work leads to better information that is used in the management of cancer and, ultimately, cures. Also see National Cancer Registrars Association (NCRA) and Certified Tumor Registrar (CTR).
Cannabis
The standard definition in use in the United States is any Cannabis sativa plant with greater than 0.3 of tetrahydrocannabinol, or THC. This is different than Hemp.
Cap
1. Private insurance or managed care plan contract maximum amount (capital sum or principal amount) placed on the expenditure of money for a specific purpose (e.g., maximum benefit coverage). 2. Abbreviation for capitation.
Cap rate
See: capitation rate (cap rate).
Capacity
REINSURANCE: (i) Largest amount of Insurance or Reinsurance available from an Insurer or group of Insurers. In a broader sense, the largest amount of Insurance or Reinsurance available in the market. (ii) Maximum amount of Insurance that a Company will write on a single risk.(iii) The percentage of surplus or the rupee amount of exposure that an insurer or reinsurer is willing to place at risk. Capacity may apply to a single risk, a program, a line of business, or an entire book of business.
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MEDICAL,USA: 1. Maximum amount of insurance an insurer or reinsurer is capable of underwriting for either one individual (single risk) or for all of its business. 2. Ability of a health care facility to provide necessary medical services.
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UK: Amount of insurance or reinsurance that can be underwritten by an entity or a market. The maximum amount of business that may be accepted by a Lloyd’s member is equivalent to his overall premium income limit. See CAPACITY BOOSTING; CAPACITY TRANSFER MARKET.
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Capacity refers to the amount of capital an insurance company or the insurance industry as a whole has to write coverage. Property and casualty insurance companies are required by state regulators to maintain certain levels of capital and policyholder surplus to underwrite risks. The combination of capital and surplus is known as capacity.When capacity declines, the cost of insurance tends to rise as insurers attempt to make up for losses. Capacity can decline due to extraordinary losses like Hurricane Katrina or reductions in investment income. Capacity can be increased through higher premiums, increased investment return, or increases in reinsurance.Thus, capacity determines the amount of insurance available. Large losses in one area (e.g., medical malpractice) can affect the capacity, and therefore availability, of that type of insurance without affecting other lines of coverage. Capacity is often seen as a test of an insurance company’s financial strength.
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The amount of premium income that insurer is permitted to write or the maximum exposure that could be accepted. It could refer to an insurance company, a reinsurance company, a Lloyd’s Name, A Lloyd’s syndicate, or a whole market. Also Refer: “Reinsurance, Capacity”
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REINSURANCE: The largest amount of insurance or reinsurance available from a company or the market in general. Also refers to the maximum amount of business (premium volume) that a company or the total market could write based on financial strength or regulatory limitations.
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US: The largest amount of insurance or reinsurance available from a company or the market in general. Capacity is determined by financial strength and is also used to refer to the additional amount of business (premium volume) that a company or the total market could write based on excess (unused) capital—that is, surplus capacity.
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The largest quantity of insurance or reinsurance available for purchase, either from one company or from the entire market.
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This term may refer to: (a) a member’s allocated capacity (b) syndicate allocated capacity (c) the total underwriting capacity of all syndicates combined; or (d) the underwriting capacity of an insurance company or reinsurance company.
Capacity auction
A procedure which allows a member to sell his participation rights in one or more syndicates for the following year of account to one or more other members, a managing agent or a members’ agent operating a MAPA by means of electronic bidding at specific times. Individual members and some corporate members buy and sell capacity through their members’ agents.