Contract month

One month within an insurance contract period. This phrase is used by insurance companies and managed care plans to describe utilization or market share stated in terms of the number of subscriber contracts per month.

Contract of indemnity

Type of agreement in which the amount of benefit paid is based on the actual amount of financial loss that is determined at the time of the loss. Many hospital expense insurance contracts are contracts of indemnity.
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Property and liability Insurance contracts are, subject to certain exceptions, contracts of indemnity. The person insured under these contracts should not benefit financially from the happening of the event insured against.

Contract provider

Entity that has a contractual agreement with a health insurance plan to give services to the plan’s members. Such entities include ambulatory surgical centers, dentists, extended care facilities, home health care agencies, hospitals, pharmacists, physicians, and skilled nursing facilities. Also called cooperating provider.

Contract rate

See: premium rate.
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A charge levied by carriers selling capacity forward over a given route to a shipper or forwarder; the client is therefore assured of capacity which must be paid for regardless of load carried.

Contract year

Twelve consecutive months starting with the beginning date of coverage; this period may not always coincide with a calendar year.
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This period runs from the effective date to the expiration of the contract.