1 2 3 4 5 7 8 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
C. Ca Cb Cc Cd Ce Cf Cg Ch Ci Cl Cm Co Cp Cr Cs Cu Cy

Coefficient of Variation

The standard deviation divided by mean or the expected value. A measure of the dispersion, scattering or variation of the outcomes in a probability distribution. The larger the coefficient of variation, the less predictable is the future outcome.Expected Loss : The average loss in the long run. The expected loss is the mean of the probability distribution of losses, not the mode.Probability Distribution of Total rupee Losses Per Year : A listing of all the total rupee losses that might occur in a year and the probabilities of each possible total rupee amount. The two component probability distribution that determine this probability distribution are the probability distributions of (01) the number of occurrences and (02) the rupee loss per occurrence.,Spatial Probability of Loss : he proportion of similar units exposed to loss over a given time period that will experience a loss, given a very large number of units exposed.Theoretical Probability Distribution : Probability distribution for which a formulae has been developed based on some assumptions about the behavior of the variable. Useful distributions in risk management are the Poisson distribution, the normal distribution, the log normal distribution, the log normal distribution, and others.Temporal Probability of Loss : The proportion of similar times during which a unit is exposed to a loss that the loss will occur, given a very large number of times exposed.Probable Maximum loss (P.M.L. ): See Also: “Loss, probable maximum.”
***
The ratio of the standard deviation to the mean of a probability distribution.

Coercion

An unfair trade practice which occurs when someone in the insurance business applies a physical or mental force to persuade another to transact insurance.
***
Another act defined by most states as an unfair trade practice. Coercion occurs when someone in the insurance business uses physical or mental force to persuade another to transact insurance.

Cognitive

Relevant to the mental processes of comprehension, judgment, memory, perception, and reasoning as compared with emotional and volitional processes.

Cognitive impairment

Deterioration or loss of intellectual capacity that requires continual supervision to protect the insured or others, as measured by clinical evidence and standardized tests that reliably measure impairment in the area of (1) short- or long-term memory; (2) orientation as to person, place, and time; or (3) deductive or abstract reasoning. Such loss in intellectual capacity can result from Alzheimer’s disease or similar forms of senility or irreversible dementia.

Cohort

Population group that shares a common property, characteristic, or event such as a year of birth or year of marriage. The most common one is the birth cohort, a group of individuals born within a defined time period, usually a calendar year or a 5-year interval.
***
UK: a body of claims, for example, claims grouped by accident year, report year or underwriting year.

Coinsurance

US: 1) A provision under which an insured who carries less than the stipulated percentage of insurance to value, will receive a loss payment that is limited to the same ratio which the amount of insurance bears to the amount required; 2) a policy provision frequently found in medical insurance, by which the insured person and the insurer share the covered losses under a policy in a specified ratio, i.e., 80 percent by the insurer and 20 percent by the insured.
***
MEDICAL,USA: 1. A cost-sharing requirement under a health insurance policy providing that the insured will assume a percentage of the costs for covered services. Also referred to as coinsurance payment, copayment, cost sharing, or percentage participation. 2. In the Medicare program, the amount that Medicare will not pay. The Medicare beneficiary or the beneficiary’s supplemental insurance plan is responsible for the yearly cash deductible and the portion of the reasonable charges (20%). 3. In the Medicaid Qualified Medicare Beneficiary (MQMB) program, the amount of payment that is above the rate that Medicare pays for medical services. The state assumes responsibility for payment of this amount.
***
Coinsurance has two rather distinct meanings depending on whether it is being used in property insurance or health insurance.Property InsurancePolicyholders are usually required to carry an amount of insurance that is at least a certain percentage of the total value of the property (often 80%). The purpose of this requirement is that most property losses are small and, therefore, most policyholders would carry only a small amount of insurance to cover expected claims. To counter this, insurance companies require 80% of value or more and penalize policyholders who carry less than 80% when a claim is made.

For example, if an insured has a $100,000 building, is required to carry at least $80,000 of coverage (80%) but insures for only $60,000, there will be a penalty when there is a claim. If the claim is for $50,000 the insurance company will use the “”did over should”” fraction to determine the amount to be paid. The insured carried $60,000 but should have carried at least $80,000. Thus, $60,000/$80,000 equals 75%. The company calculates the settlement as follows: .75 x $50,000 = $37,500. The insured suffers a $12,500 penalty for not insuring to 80% of value. The $12,500 is the insured’s coinsurance.

Health Insurance

For health insurance, the coinsurance is the percentage of covered health costs the insured will pay in a year after the deductible. For example, if the coinsurance provision of the health policy is 20% the insured will pay this percentage of covered claims and the insurance company will pay 80%. Usually there is a ceiling or a maximum the insured will be “”out-of-pocket.”” At that point the insurance company pays 100% for the balance of the year.

For example, after a $500 deductible, the insured pays 20% until the claims total $5,500. At this point the insured is out the $500 deductible and another $1,000 (20% of $5,000). If the policy states that the maximum out-of-pocket is $1,500, then the insurance company begins to pay 100% of covered claims for the remainder of the year.

Coinsurance clause

Coinsurance refers to the bargain between commercial property owners and the insurance industry. This clause in property policies encourages the property owner to gauge coverage needs by possible, not probable, maximum loss. With $1 million at risk but a probable maximum loss of $100,000, for example, the property owner would probably buy $100,000 insurance and bank on avoiding the larger disaster. The bargain offered by the insurance industry is a reduced rate per $100 of coverage if the owner agrees to buy coverage at a specified relation (80 percent commonly) to value (to possible maximum loss in other words). If the insured accepts the bargain but events prove the amount of insurance is inadequate to the stated coinsurance percentage, the insured becomes coinsurer in the same ratio as the amount of insurance bears to the amount that should have been carried. In major medical insurance, a provision by which both the insured person and insurance company in a specific ratio share the hospital and medical expenses resulting from an illness or injury.
***
A clause that obligates the Insurer to pay only the proportion of any loss that the amount of Insurance purchased bears to the product of the Coinsurance percentage and the value of the insured property at the time of the loss. An indirect way to achieve the rate equity.