Equity of shareholders of a stock insurance
company. The company's capital and surplus are measured by the difference between its assets minus its liabilities. This value protects the interests of the company's policyowners in the event it
develops financial problems; the policyowners' benefits are thus protected by the insurance company's capital. Shareholders' interest is second to that of policyowners.
Capital gains tax (CGT)
If the value of assets that you own
increase in value, then you may need to pay Capital Gains Tax (CGT). For example, selling shares for more than you paid for them could involve paying some CGT. You get an annual allowance for capital
gains and only pay CGT on any gain over this amount.
Capitalization or Leverage
Measures the exposure of a company's
surplus to various operating and financial practices. A highly leveraged, or poorly capitalized, company can show a high return on surplus, but might be exposed to a high risk of
Representative of a single insurer or fleet
of insurers who is obliged to submit business only to that company, or at the very minimum, give that company first refusal rights on a sale. In exchange, that insurer usually provides its captive
agents with an allowance for office expenses as well as an extensive list of employee benefits such as pensions, life insurance, health insurance, and credit unions.
The company which cedes the business
covered by a reinsurance contract.
Certificate of insurance
This document is legal evidence of your
insurance. This is an important document which you may need to produce in the event of a claim and will be provided to you by your insurer with your policy documentation.
Chancery is a division of the High Court
that deals in the administration of wills, probate and the execution of trusts.
A vehicle that is older than 20 years (25
years in the case of classic commercials) and to standard factory specification. A very limited selection of vehicles between 10 and 15 years old are also deemed to be 'cherished', but are subject to
Cherished number plate
Registration numbers issued by DVLA in the
UK, which may be rare or unusual, often spelling names or places. Some may be very valuable as they are able to be transferred from car to car, but in some instances following a total loss this may
The Chartered Insurance Institute (CII) is
the premier professional organisation in the insurance and financial services industry.
Any report of an incident in which the
policy holder requests a payout or indemnity from the insurer under the conditions of the policy.
This is the payment that’s made to a broker
for services that he or she provides, based on a percentage of the value of the premiums paid. It’s paid to the broker by the product provider.
An area of law built upon principles taken
from previous cases rather than created by statutes enacted by Parliament.
Covers the items in your home which are not
fitted to the main structure of the building such as clothes, appliances, furniture, jewellery and other items of value. If you were to turn your house upside down, anything that fell out would be
classed as 'contents'.
Insurers which have similar obligations to
the insured contribute in the indemnification. For example, if you have 2 policies that cover the same incident e.g. home and travel cover – each will pay its own proportion (not necessarily a 50/50
This is the process of transferring legal
ownership of property from one person to another.
A cover note is a temporary form of
certificate, usually valid for 30 days only.
The Consumer Price Index (CPI) is a measure
of inflation used by the British Government for its UK inflation target. It measures changes in a ‘basket’ of goods and services purchased by households.
Critical illness cover
This is an insurance policy that you take
out so that you can rely on having a lump sum paid if you're diagnosed with a specified critical illness.
Current market value
The current market value is the price which
your property would sell for on the open market.