Kelly Insurance--Glossary--Legal Terms-C

Legal Terms

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Certiorari.
A writ issued by a higher court to a lower court asking the lower court to forward the record of a particular case in question.
Chattel.
All personal property items.
Class Action Suit.
A legal device allowing a group of individuals with a claim against a company or an individual to join together as plaintiffs in a single suit.
Collateral Source.
A rule which allows a plaintiff to recover damages even if the plaintiff has already recovered damages from a source other than the defendant.
Common Law.
The unwritten law developed primarily from judicial case decisions based on custom and precedent. It developed in England and constitutes the basis for the legal systems of most of the states in the United States.
Community Property.
Common or statutory law which holds that husband and wife are each entitled to 1/2 of the total earnings and the property of both parties to the marriage. It is applicable in Arizona, California, Idaho, Hawaii, Louisiana, Nevada, New Mexico, Oklahoma, Texas and Washington state.
Comparative Negligence.
In some states the negligence of both parties to an accident is established in proportion to the degree of their contribution to the accident. Several states have comparative negligence laws, and each one varies somewhat from the others. This is in contrast to contributory negligence, which is a general common law rule. See Contributory Negligence for comparison.
Compensatory Damages.
Damages recoverable or awarded for injury or loss sustained. In addition to actual loss or injury, this term may include amounts for expenses, loss of time, bodily suffering and mental suffering, but does not include punitive damages.
Competency.
This is one of the elements that must be present in order to have a legal contract. It relates to the fitness or ability of either of the parties to the contract. An example of incompetency would be an alcoholic or a mental incompetent.
Concealment.
The failure to disclose a material fact. See Material Fact.
Conservator.
Someone appointed to manage an insurer deemed by law or court action to be in danger of failure.
Consideration.
The exchange of values on which a contract is based. In insurance, the consideration offered by the insured is usually the premium and the statements contained in the application. The consideration offered by the insurer is the promise to pay in accordance with the terms of the contract.
Consortium.
The companionship of a spouse. If a spouse is injured through the fault of another, part of the damages could include the value of the spouse's services or companionship which was lost due to the accident.
Conspiracy.
A combination of two or more persons that by concerted action seek to accomplish an unlawful purpose or to accomplish a lawful purpose by unlawful means.
Constructive Performance.
A situation in which an act has not actually been completed but conduct has gone so far as to show intent to complete the act.
Consumer Protection Act.
A law passed by many states which protects a policyholder from the misconduct, misrepresentation, or "sharp" trade practices of insurers, brokers, and agents.
Contract of Adhesion.
A contract that one party must accept or reject in toto, without bargaining over the wording. An insurance contract is an example, since the contract is developed by the insurer, and the insured must accept it as it is.
Contract of Insurance.
The contract whereby an insurer agrees to indemnify an insured for losses, provide other benefits, or render services to or on behalf of the insured. The contract of insurance is often called an insurance policy, but the policy is merely the evidence of the agreement.
Contributory Negligence.
If an injured party fails to exercise proper care and in some way contributes to his injury, the doctrine of contributory negligence will probably negate or defeat his claim, even though the other party is also negligent. Contrast with Comparative Negligence.
Countersignature Law.
Refers to the laws which most states have requiring that any insurance contract in a state be countersigned by a representative of the insurer located in that state.
Creditor.
The person to whom a debt is owed.
Crime.
A public wrong, a violation of criminal law. The state is the entity that bring charges against one who commits a crime, and the matter is adjudicated in a criminal court. Contrast with Tort.