Glossary of Insurance Terms

C

Cancellation

Termination of an insurance policy or bond by an insurance company or a policyholder before its expiration date.

Capitation

A compensation plan used in some health maintenance organizations (HMOs) in which a physician is paid a flat amount per year per subscriber who elected to use that physician. For that amount, the physician must treat the subscriber as often as necessary during that year. Physicians are not reimbursed for services that exceed the allotted amount.

Captive agent

An agent who sells insurance for only one company, as opposed to an independent agent who represents several companies.

Care coordination

Services provided by a licensed or certified health care professional designated by the insurance company to perform an assessment and develop a plan to meet your long-term care needs.

Caregiver training

Training provided in order to assist an informal and unpaid caregiver to care for you at home.

Carrier

An insurance company that actually underwrites and issues the insurance policy. The term is used because the insurance company assumes or carries the risk for policyowners.