Cancellation clause
A clause in an insurance contract which permits an insurer and/or an insured to cancel the contract before it is due to expire. The clause may provide for a return of premium in respect the unused portion of the policy.
Capacity
This term may refer to:
(a) a member’s allocated capacity
(b) syndicate allocated capacity
(c) the total underwriting capacity of all syndicates combined; or
(d) the underwriting capacity of an insurance company or reinsurance company.
Capacity auction
A procedure which allows a member to sell his participation rights in one or more syndicates for the following year of account to one or more other members, a managing agent or a members’ agent operating a MAPA by means of electronic bidding at specific times. Individual members and some corporate members buy and sell capacity through their members’ agents.
Capital provider
As regards a Lloyd’s syndicate it member(s). As regards a company, its shareholders.
Carrier (of risk)
An insurer or reinsurer.
Cash call
A demand for additional funds to meet underwriting liabilities that is made by a managing agent on the members of its managed syndicate. Subject to the satisfaction of certain procedural requirements a member that receives a cash call is obliged to meet it insofar as his underwriting liability is not limited and he has the funds to do so.
Casualty
Refers to a loss, particularly the loss of a ship.
Casualty book
A book which stands in the centre of the underwriting room and which records details of vessels which are or are likely to become total losses. The entries are made a Lloyd’s waiter using a quill pen.
Casualty business
Another term for liability insurance.
Cede
To transfer a risk exposure under a reinsurance contract.
Cedant
A syndicate or company that transfers a risk exposure under a reinsurance contract.
