Blank check in which the name of the bank and account number is filled in with ink or typed by the maker.
Tag: RAW
Counter Guarantee
Security given to a guarantor to indemnify him against any liability he may incur as a result of having given his guarantee.
Counter guarantee/indemnity
Guarantee or indemnity obtained by a surety from a bonded party. If the insurer as surety pays out under say a performance bond, redress will be sought from the bonded party or any other party providing a guarantee on his behalf. The counter guarantee is obtained even though the surety has a common law right of redress against the bonded party.
Counter life
See: Contingent Insurance.
Counter Signature
An additional signature required in some markets to comply with local government regulations; applies when a producer in one state or country controls business located or operating in another state or country.
Counterfeit airbags
Instead of repairing airbags correctly, a shop will replace an airbag with garbage or a cheap knockoff without telling the insured. The carrier pays for the repair, and the shop pockets the funds.
Counteroffer
Proposal that is slightly changed in response to an original offering that was not satisfactory.
Counterparty risk
The risk that a counterparty to a transaction will not pay when the triggering event occurs. The risk in the case of catastrophe bonds is low. The proceeds of the bond are invested in safe securities such as US Treasury Bonds and held in trust by the bankruptcy-remote SPV or a special trust. If the triggering event occurs the insurer is permitted to withdraw funds from the trust. In return the investors receive the one-year Treasury bill rate plus a premium rate.
Countersignature
A licensed insurance agent or representative’s signature on a policy.
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A property/casualty insurance contract is not valid until it is signed by an agent or representative of the insurance company issuing the contract. The agent or representative signing the policy must be licensed in the state where the contract is effective.For example, if an agent is licensed only in Tennessee and has an insured who operates in Tennessee and Kentucky, the agent must find an agent or company representative licensed in Kentucky to countersign the policy covering the Kentucky operations. (See Agent of Record).
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An authorized signature of agent or company representative on an insurance policy. Usually pertains to policies sold by an agent of the insurer located in another state.
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MEDICAL,USA: Signature of a licensed insurance agent or representative on an insurance policy that is necessary to validate or authenticate the contract or document that has been signed by another person.
Countersignature law (Legal Terminology)
The state law mandating a signature by the representative of the insurer on any insurance contract in that state.