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

Consideration

A trade of something of value, which becomes the basis of a contract. In the case of insurance, the consideration is the premium paid by the insured and the future payout of claims by the insurance company.
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Consideration consists of some right, interest, profit or benefit accruing to the one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by other. In the case of Insurance contracts the consideration moving from the insured to the Insurer is the premium and the consideration moving from the Insurer to the insured is the promise to indemnify. In Insurance the consideration may be statements made on the application and payment of premium.
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MEDICAL,USA: In contracts, anything of value given by one individual to another to induce the other person to enter into the contract.
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US: One of the elements for a binding contract. Consideration is acceptance by the insurance company of the payment of the premium and the statement made by the prospective policyholder in the application.

Consideration clause

Insurance policy section that states the reason an insurance company issues an insurance contract (i.e., the statements on the application and the payment of the insurance premium).
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Stipulation that states the basis on which an insurer issues an insurance contract.

Consignee

The party (usually the buyer) named in a bill of lading or waybill, who is entitled to receive cargo that is shipped by the consignor and delivered by the carrier. Under CFR terms the consignee arranges the transit insurance, but under CIF he pays the premium in the price of the goods.
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(a) Person or firm to whom goods are shipped under a bill of lading. (b) The individual or company to whom a seller or shipper sends merchandise and who, upon presentation of necessary documents is recognized as merchandise owner for the purpose of declaring an paying customs duties.

Consignment

Physical transfer of goods from a seller (consignor) with whom the title remains, to another legal entity (consignee) who acts as a selling agent selling the goods and remitting the new proceeds to the consignor.

Consignor

A term used to describe any person who consign goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal.

Consistency edits

Computer software screening system that identifies clinical, coding, billing, and data errors on insurance claims. Under the Medicare program, insurance claims must pass edits for all Medicare-required fields on both the Uniform Bill (UB-04) and CMS-1500 claim forms for payment.

Consolidated Insurance Program

This is a type of insurance program (also known as “wrap-around) where a general contractor for a large construction project purchases blanket liability and workers compensation policies for all of the contractors and subcontractors working on behalf of the general contractor. In some insurance markets, small contractors may have trouble obtaining adequate liability and workers compensation coverage. Should a loss occur the general contractor or developer is held liable for the uninsured portion of the subcontractor’s negligence or injury to the subcontractor’s employees. Therefore, the general contractor purchases wrap-around coverage that covers all contractors on the job. The general contractor holds the subcontractor’s proportionate share of the insurance premium out of the subcontractor’s payments.