Trigger events or reference points underlying a weather derivative where the payout depends on the critical conditions occurring on any day in the contract period. A critical day may be each day the temperature exceeds 25°C. The amount paid is based on the number of critical days occurring during the period multiplied by the tick.
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Critical illness policy
Pays out a tax-free lump sum if, during the policy term, the insured is diagnosed with any of a range of serious conditions such as cancer, heart disease, strokes and multiple sclerosis. Even when diagnosed, the insured may live for some time so necessitating the need for financial protection while undergoing treatment and recuperation. The policy can stand alone or be added to a whole life, endowment or term insurance.
Critical Illness/Dreaded Diseases Policies for Health Insurance
Policy provides a lump sum amount to the insured on the diagnosis of a specific critical illness or on undergoing of certain procedures. It does not cover the actual cost of treatment but pays only the lump sum amount agreed irrespective of whether that amount had been incurred or not. Policy is available as a stand-alone product or as riders to life and non-life policies or as a component of a packaged health insurance product. They provide for high sum insured limits ranging up to several million rupees of lump sum payouts. Some of these policies have a disease specific variant, for example, the Cancer Insurance Policy provides protection only in the case of Cancer and not for other critical illnesses. These policies are priced attractively for a high amount of coverage and are on indemnity basis and not as a lump sum payout. Some of the critical illness indemnity products reimburse certain costs due to critical illnesses rather than providing a lump sum payout and are therefore priced lower than other such products.
Critical pathways
See: clinical pathway and practice guidelines.
Criticial yield
Yield is the interest earned on a bond, or dividend paid on shares or a fund. In the pensions industry the term critical yield refers to the investment returns needed to provide pension income for executive pension plans, final salary scheme pensions, small selfadministered schemes, income drawdown and transfer value analysis system.
Criticism
An auditor’s submission of a modification to an insurer.
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A correction suggested by a rating or auditing bureau to an insurer.
Cromie Rule
A method or guide used to apportion losses under policies which are non-concurrent, that is, not identical as to coverage provided.
Cromie rule (Property Insurance)
A technique for apportioning loss under policies with nonidentical coverage.
Crop Hail
This type of insurance provides coverage for the loss of crops due to hail. It often also covers the crops still in the ground from loss due to fire, lightening, as well as covering the crops against fire when being transported to their first place of storage after being harvested. This coverage is normally written by the private insurance market.
Crop Insurance
Insurance as a tool of protection for growing crops against various natural and social perils. Crop insurance may be according to perils insured viz., (i) single peril insurance e.g., Hail insurance, (ii) named peril insurance e.g., up to four perils are covered, (iii) multi-peril insurance e.g., at least five or more perils are covered and (iv) all perils insurance e.g., covers all natural and non-preventable perils. According to object insured it can be (i) single crop insurance covering a single crop e.g., apple insurance against hail and frost or (ii) Multiple crop insurance e.g., a single scheme covers a host of crops like Comprehensive Crop Insurance Scheme (CCIS) and National Agricultural Insurance Scheme (NAIS).
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Insurance covering growing crops against hail, wind, and fire. Protection against a broader range of perils can often be arranged as well. Crop insurance can be provided by private insurance companies or the Federal government through the Federal Crop Insurance Corporation (FCIC) which is administered by the Risk Management Agency (RMA).
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UK: Insurance effected by farmers against failure or reduction in output of a crop due to a specified peril (e.g. hailstorm) or a wider range of perils (e.g. adverse weather conditions).
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There are two kinds of crop insurance. One is known as “crop hail” and the other is known as “crop multiple peril.”