Glossary of Insurance Terms

Captive Agent

An agent of a single insurer who is required to submit business only to that company.


An insurance company.


An event that causes major losses to numerous insureds simultaneously. Examples of these losses are hurricanes, earthquakes, and wildfires.

Certificate of Insurance

Written evidence that an insurance policy has been issued, indicating both the amounts and the types of insurance included.

CIGA – California Insurance Guarantee Association

This is the state reinsurance program that protects insured’s from insolvent admitted carriers for up to $500,000.

Claims-Made Policy

A liability policy that provides coverage for an injury or loss if the claim is first reported or made during the policy period. This is in contrast to the broader occurrence policy forms, which cover injuries or losses that occur during the policy period, regardless of when the claim was first made.

Coinsurance Requirements

A policy provision that requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss.

Commercial General Liability Insurance (CGL)

This broad coverage provides protection for all liability exposures not specifically excluded.

Coverage Amount

The amount of protection in dollars provided by an insurance company towards the replacement of the insured’s property.