An advice sent by a broker to an insurer who has taken a line on a slip specifying the actual proportion of risk allocated to the insurer and the actual premium receivable. If a slip is oversubscribed, the broker scales down and apportions the risk pro rata. See SHORT CLOSING.
Insurance Encyclopedia
Closing Particular
Final advice on full particulars of risk for which placement with reinsurer is completed.
Closing slip
See: Closing Instructions.
Cloud on the Title
An outstanding claim or encumbrance which, if valid, would affect or impair the owner’s title; a mortgage or judgment.
CLU
A designation – Chartered Life Underwriter – conferred upon successful completers of a series of studies of life insurance and related disciplines designed by the American College.
Club
Protection and Indemnity association operated on behalf of ship-owners to provide cover for risks not normally covered by hull underwriters.
Club Calls
The contributions that ship owner members of a Protection and Indemnity Club are called on periodically to make to meet the claims paid and expenses incurred by the club.
Clubs
See: MEMBERS’ CLUBS.
Cluster policies
a group of identical life policies aimed primarily at investment and designed to facilitate flexibility in making partial surrenders; sometimes referred to as an investment bond.
Cluster policy
A life policy consisting of a number of equally valued smaller policies. Each policy in the cluster is treated separately for tax and administrative purposes. The holder can transfer each individual policy separately into a personal pension scheme to secure pension benefits and take them at different times to phase in retirement. The holder is able to retain the maximum tax-free investment and secure a lump sum return on death. Clustering can also be applied to investment bonds or endowments enabling the holder to take benefits as required over a period.