Glossary

Coinsurance hammer clauses provide for a sharing of defense and indemnity costs (between the insured and the insurer) incurred after the insured refuses to consent to a settlement proposed by the insurer.

A coinsurance provision is defined as a property insurance provision that penalizes the insured's loss recovery if the limit of insurance purchased by the insured is not equal to or greater than a specified percentage (commonly 80 percent) of the value of the insured property.

A coinsurer is one that shares the loss sustained under an insurance policy.

Collapse additional coverage is coverage under the Insurance Services Office, Inc. (ISO), broad and special causes of loss forms (CP 10 20 and CP 10 30) for collapse of a building and collapse of personal property within a building due to specified causes (e.g., weight of snow, ice, or rain).

Collapse: homeowners policy is additional coverage provided by the homeowners policy.

An agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor.

Collateral refers to assets that are provided as security to ensure satisfaction of a future liability.

A collateral agreement transfers all or some of the rights of the owner of personal property (including a life insurance policy) to another party (the assignee) as security for the repayment of an indebtedness.

Collateral documents are additional documents that are often incorporated into a policy by physical attachment or by reference.

Collateral estoppel is a doctrine under which an earlier decision rendered by a court in a lawsuit between parties is conclusive as to the issues or controverted points so that the issues cannot be relitigated in subsequent proceedings involving the same parties.