CLHIA-ACCAP

39 life are types of life insurance that have cash value. (See "Cash surrender value".) Certificate of insurance. A document that sets out the key features of the insurance under a group insurance plan. It lists things like the type and amount of coverage, categories of dependents, deductibles and coinsurance, limits and exclusions, and instructions for making a claim. Or, a contract given to those who have insurance through a "fraternal society". Claim. A formal request to an insurance company for payment of a benefit. Claimant. The person who makes a claim. Coinsurance. An arrangement in a health or dental insurance plan where you and the insurance company share the cost of the items covered. You usually pay a set percentage (e.g., 20% paid by you and 80% paid by the plan). Contestability. Contestability is the legal right of the insurance company to question (or 'contest') your insurance coverage. If the company finds that you gave incomplete or incorrect information when applying for the insurance, they will look at what impact the missing information would have had on their decision to insure you. If their decision would have been different, they may cancel your coverage and deny any claims. Most policies have a two-year contestability period. After that, the company cannot contest your coverage except in the case of fraud (a deliberate misstatement of fact). An example of fraud is a smoker who states in their application that they're a non-smoker, to get a reduced premium. Contingent beneficiary. If you choose to name more than one person to receive a benefit, you can name some to be primary and others to be secondary (also called contingent). Primary beneficiaries are first in line to receive benefits. Secondary beneficiaries receive a benefit if the primary beneficiary for that specific share has already died when the benefit becomes payable. Contract. An insurance contract is the legal agreement with your insurance company that sets out the terms of your coverage. The contract usually includes your application, the policy, and any changes made later to the policy. Conversion right. A right that a policyholder has to exchange their policy for another one, without giving proof of good health. A common example is term insurance that can be exchanged for a permanent insurance policy. Another example is a group insurance plan where an employee plan member who leaves the plan can convert their group insurance to an individual insurance policy. Coordination of benefits. Families with two working adults may be covered by more than one health or dental plan. If your primary plan doesn't pay the full amount of an expense, you can submit a claim to the other plan for the balance. In this way, you can receive up to 100% of your expense. Covered expenses. See "Eligible expenses". Creditors group insurance. A type of insurance that helps to pay down or pay off your loan or credit card or cover your payments in certain situations, such as if you die or become disabled. It can be offered through financial institutions, auto dealers, mortgage brokers, retailers, or credit card companies when you take on debt. Creditor protection. If you have unpaid debts, the people you owe the money to (your creditors) may legally have access to your assets, such as property, investments or valuables, to pay off the debt. This may happen through your bankruptcy or other legal proceedings. The funds in your insurance policies may be protected from creditors in certain circumstances. For example, if you make certain beneficiary designations, declare bankruptcy, or if the policy is registered (such as a "Registered Retirement Savings Plan"). However, the protection may not apply if you put your money into an insurance policy to avoid paying your creditors. Critical illness insurance. A type of insurance that pays you a lump sum if you are diagnosed with a life altering illness such as cancer, heart attack, stroke, Multiple Sclerosis or Parkinson's Disease. The exact illnesses covered are listed in your policy. You can buy this type of insurance on its own or may be able to add it to a life insurance policy or group plan. D Deductible. Deductibles are common in health insurance plans. The deductible is the amount of a covered expense that you pay before your insurance company makes any payments. The deductibles apply to you and to any dependents covered under the plan. Examples might be $50 per person per year or $5 for each drug prescription. Deferred annuity. A contract that pays you income at regular intervals, starting at a future date (e.g., a certain number of years or at a specific age). Defined benefit pension plan. A workplace pension plan that pays you a set benefit amount when you retire. Benefits are based on a formula that takes into

• Cover