Glossary

Claims reserve refers to an amount of money set aside to meet future payments associated with claims incurred but not yet settled at the time of a given date.

A claim expense is the expense of adjusting a claim.

Claim intake is, in workers compensation, the process of receiving and recording the claim, often through toll-free telephone numbers staffed 24/7 to receive loss reports.

Clash cover refers to a form of reinsurance that covers the cedent's exposure to multiple retentions that may occur when two or more of its insureds suffer a loss from the same occurrence.

A class is a group of insureds who have similar exposures and experience and are grouped together for rating purposes.

Classification is a system of establishing classes for rating purposes.

A classification limitation is a nonstandard exclusion sometimes made part of general liability policies for commercial insureds with a wide range of business activities.

Classified insurance refers to insurance for substandard risks in life and health insurance.

Class 1 insureds is a term that is sometimes used in the context of uninsured motorists (UM) and underinsured motorists (UIM) coverage to refer to the named insured and the named insured's family members (as opposed to all other insureds, referred to as Class 2 insureds).

Class 2 insureds is a term sometimes used in the context of uninsured motorists (UM) and underinsured motorists (UIM) coverage to refer to insureds (e.g., a guest occupant of a covered auto) other than the named insured and the named insured's family members (referred to as Class 1 insureds).