Carrier:
In insurance, another term for insurer, used because the insurance company assumes or carries the risk for its policy owners.

Cash surrender value:
See cash value.

Cash value:
In a life insurance policy, the amount available to the owner when a policy is surrendered to the company.  During the early policy years, the cash value is the reserve less a surrender charge.  in the later policy years, the cash surrender value usually equals or closely approximates the reserve value.

Charitable trust:
A trust designed for the benefit of a class or the public generally.  Is is essentially different from a private trust in that the beneficiaries are not designated individually.

Child rider:
A rider is an attachment to a policy that adds something to the policy (as opposed to being established in the body of the policy).  A child rider allows parents to purchase life insurance for their children (all in one rider), without having to purchase a separate policy for each child.

Collateral assignment:
In insurance, the assignment of a policy to a creditor as security for a debt.  Under a collateral assignment, the creditor is entitled to be reimbursed out of policy proceeds for the amount owing to him or her; the beneficiary is entitled to any excess of policy proceeds over the amount due the creditor in the event of the insured’s death.

Conditional receipt:
A receipt given to a life insurance applicant if all or part of the premium is paid at the time of application.  This receipt does not provide absolute interim insurance (during underwriting) until the company acts on the application, but stipulates that the company will assume the risk of the death of the insured after the date of the application if it later approves the application or, more frequently, if the insured meets with the company’s rules of insurability for the plan applied for as of the date of the application.

Contestable clause:
That section of an insurance contract which states conditions under which the policy may be contested or voided.  Also see incontestable clause.

Contestable period:
The period of time during which an insurer may contest a claim on a policy because of misleading or incomplete information furnished with the application.

Contingent beneficiary:
In life insurance, an alternate beneficiary designated to receive payment, usually in the event that the original beneficiary has died before the insured.  Also, sometimes referred to as secondary beneficiary.

Convertible privilege:
In life insurance, some term policies provide that they may be converted to permanent forms of insurance without medical examination or underwriting if conversion is made within a limited period as specified in the policy.

Cross purchase agreement:
An arrangement of buy-sell agreements made by business owners while all are living, which, in the event of an owner’s death, binds the surviving shareholders or partners to purchase, and the estate of the deceased to sell, the deceased’s interest in the business.  A cross purchase agreement is often funded with life insurance policies owned by each principal on the lives of all other principals.

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