CANCELLATION – Termination of an insurance coverage during the policy period by the voluntary act of the Insurance Company or Insured, effected in accordance with provisions in the contract or by mutual agreement.

C&D – Transport abbreviation meaning “Collection and delivery”

C&F – Cost and freight. Sale term relating to goods in transit. This is the same as C.I.F. except that the seller does not arrange insurance for the buyer.

C&I – Cost and Insurance. Sale term relating to goods in transit. The seller does not pay the shipping charges, leaving the buyer to make his own arrangements. The seller does arrange the insurance and includes the insurance premium in the purchase price.

CARGO CLAUSES – Clauses used in policies insuring goods in transit – most commonly used set are issued by the Institute of London Underwriters.

CARRIER – Shipowner, Vehicle-Owner or other person who carries goods and is responsible for their safety.

CASH IN TRANSIT – The insurance of cash and/or bank notes in transit.

CASH VALUE (ACTUAL) - The cost of replacing or restoring property to it condition prior to a loss minus the depreciation.

CATASTROPHE – A sudden, great disaster.

CAUSA CAUSANS – The cause of a cause. A legal doctrine used in determining “proximate cause”.

CAUSA PROXIMA – Proximate Cause. The full term is “Causa Proxima non Remota Spectatur”

CAUSA REMOTA – The cause, in a series of causes resulting in a loss, which is furthest removed from the proximate cause. It is often the first cause of the series.

CAVEAT EMPTOR – “Let the buyer beware”. A legal tem relating to the purchase of goods and placing the onus on the buyer to satisfy himself that the goods which he is purchasing are suitable and of sufficient standard or quality for the purpose intended.

CERTIFICATE OF INSURANCE – A document issued to the Insured certifying that insurance has been effected and that a policy has been issued.

CHARTERER – A hirer of a vessel from the owner either for a period of time or for a voyage.

CHARTER HIRE – The hiring out of a ship on charter, either voyage or time.

CHARTERPARTY - Conditions under which a charterer hires a vessel.

CIVIL LIABILITY – Liability to other motorists, pedestrians and property owners that you assume when operating your automobile on a public roadway.

CIVIL COMMOTION – An internal national disorder.

CLAIM – Notice to an Insurer that under the terms of a policy, a loss may be covered.

CLAIMANT – The person suffering the loss who presents the claim.

CLAIMS ADJUSTER – An independent person hired by an Insurance Company to be responsible on behalf of the Company for claims settlement.

CLAIMS DOCUMENTS – The documents required for presentation to the Insurer when the Insured wishes to make a claim under his policy.

CLAIMS RESERVE – The amount set by the Insurer is his book of accounts for the settlement of outstanding claims.

CLASSIFICATION CLAUSE – In marine insurance, a clause detailing the minimum standards of vessels that carry cargo failing which an additional premium is payable.

CLAUSE – A term used to identify a particular part of a policy or endorsement.

CO-INSURANCE – (1) In property insurance, a clause under which the Insured shares in losses to the extent that he is underinsured at the time of loss; (2) Where two or more Insurers each have part of the risk under a single insurance policy.

COLLISION - The impact between a vehicle/vessel and another vehicle/vessel or object.

COMMISSION – Remuneration for service rendered.

COMMON CARRIER – A carrier who agrees to carry any goods. A carrier who refuses to carry certain types of goods, mainly for safety reasons, is not a common carrier.

COMPREHENSIVE INSURANCE – Comprehensive insurance reimburses you for damage to your car and also covers your legal liability to third parties for property damage and bodily injury.

COMPULSORY INSURANCE – Any form of insurance which is required by law.

CONDITION – A requirement imposed in the contract of insurance by the Insurer and which must be literally complied with unless it is waived by the Insurer.

CONSEQUENTIAL DAMAGE – A loss which is an indirect result of an accident or fire, e.g. food spoiled through breakdown of a refrigerator.

CONSIDERATION – The insurance premium paid to bind the Insurer to the performance of the contract.

CONSORTIUM – A group of Insurance Companies who agree to share with each other risks written by any individual member of the Consortium.

CONSTRUCTIVE TOTAL LOSS – In marine insurance, the Insured has the right to abandon the Insured property to the Insurer and claim a constructive total loss where, because of the operation of an Insured peril, (a) the Insured is deprived of the Insured property and is unlikely to recover it, or (b) an actual total loss appears to be inevitable, or (c) in the case of a vessel – the estimated costs of recovery and repair would exceed the repaired value, or (d) in the case of cargo – the estimated costs or recovery, reconditioning and forwarding to destination would exceed the repaired value (see ‘Notice of Abandonment’).

CONTAINER – A large metal box in which many packages can be stowed in advance of loading on a ship so that the container can be loaded, stowed and discharged as a complete unit.

CONTRACTUAL LIABILITY - Liability which would not rest upon a person except that he has accepted responsibility by contract expressed or implied.

CONTRIBUTION – Where two or more polices exist covering the same interest, there is double insurance. Each Insurer will contribute rateably towards the loss in proportion to the amount for which he is liable under his policy.

COVER – To insure.

COVERAGE – Insurance.

CROSS LIABILITY – In a policy have multiple named Insureds, coverage for the legal liability of each party to the other.

CUTTING CLAUSE – A cargo clause in respect of pipes or similar cargoes of length which provides that damaged cargo should be cut off leaving the good pieces for the account of the Insured.

CUT THROUGH CLAUSE – The original Insured has no legal rights under the contract between the Insurer and his Reinsurer. The Cut Through Clause is a condition which guarantees payment to the original Insured even though he is not a party to the reinsurance contract between the Insurer and the Reinsurer.