Package Policy:
Any combination of two or more lines of coverage's into a single
policy.
Paid-Up Insurance:
Insurance on which all required premiums have been paid.
Paramedical Examination:
Physical examination of an applicant by a trained person other
than a physician, usually done for a life insurance policy or a
individual health insurance policy.
Partial Disability:
The result of an illness or injury which prevents an insured from
performing one or more of the functions of their occupation.
Participating Policy:
A life insurance policy under which the company agrees to
distribute to policyholders the part of its surplus which its Board
of Directors determines is not needed at the end of the business
year.
Pension Benefits:
A series of payments to be provided in accordance with the plan
of benefits.
Pension Plan:
A plan established and maintained by an employer, group of
employers, or union to provide for the payment of determinable
benefits to participants after retirement.
Percentage Participation:
A provision in a health insurance contract that the insurer and
insured will share covered losses in agreed proportions.
Per Claim Deductible:
The most a law firm would pay for each claim reported during the policy year.
Peril:
The cause of a loss insured against in a policy.
Permanent Life Insurance:
A phrase used to cover any form of life insurance except term;
generally insurance that accrues cash value, such as whole life.
Permit Bond:
A bond that guarantees a person who has been issued a permit
will comply with any laws and ordinances in which the permit
was issued.
Persistency:
A term used to refer to the length of time insurance remains
continuously in force with a company.
Personal Articles Floater:
A type of insurance designed to meet the needs for insurance on
property of a moveable nature. This coverage usually protects
against all physical loss, subject to special exclusions and
conditions. Examples of this type of property include jewelry,
furs, silverware, fine arts, and valuable collectors pieces..
Personal Injury Protection (PIP):
First party no fault coverage in which an insurer pays, within
specified limits, the medical, hospital, loss of work income, and
funeral expenses of the insured.
Personal Lines:
Those types of insurance, such as individual automobile or home
insurance rather than for businesses or organizations.
Physical Damage:
Damage to or loss of an automobile resulting from a named peril.
Plan Administrator:
The person(s) controlling money or property contributed to the
plan, usually designated in the plan agreement.
Point-of-Service Plans:
These plans permit insureds to choose providers outside the plan
yet are designed to encourage the use of network providers. A
hybrid of a HMO and PPO.
Policy:
The legal document issued by the company to the policyholder,
which outlines the conditions and terms of the insurance; also
called the policy contract or the contract.
Policy Dividend:
A refund of part of the premium on a participating insurance
policy reflecting any difference between the premium charged
and actual experience.
Policy Loan:
A loan made by a life insurance company from its general funds
to a policyholder on the security of the cash value of a policy.
Policy Reserves:
The measure of the funds that a life insurance company holds
specifically for fulfillment of its policy obligations.
Policy Term:
The period of time for which an insurance policy provides
coverage.
Policyholder:
The person who owns a life insurance policy. This is usually the
insured person, but it may also be a relative of the insured, a
partnership or a corporation.
Policyholders' Surplus:
Sum over and above liabilities available for an insurer to meet
future obligations to its policyholders.
Pool:
An organization of insurers or reinsurers through which particular
types of risk are underwritten.
Pre-Admission Certification:
The process in which a health care professional evaluates an
attending physician's request for a patient's admission to a
hospital to evaluate whether or not inpatient care is necessary.
Preexisting Condition:
A physical and / or mental condition of an insured which first
manifested itself prior to the effective date of a policy.
Preferred Provider Organization (PPO):
An arrangement whereby a third-party payer contracts with a
group of medical care providers who furnish medical services at
lower than usual fees in return for prompt payment and a certain
volume of patients.
Premium:
The sum paid by a policyholder to keep their insurance policy in
force.
Premium Finance:
Allows the insured to pay part of the premium
when coverage takes effect and pay the rest during the policy
period through arranged payments.
Primary Insurance:
Insurance that pays compensation for a loss ahead (first) of any
other insurance coverage's the policyholder may have.
Principal Sum:
An amount payable in one sum in the event of accidental death
and in, some cases, accidental dismemberment.
Probate:
A court-supervised process of validating or establishing
distribution of assets of a deceased including the payment of
outstanding obligations.
Probate Estate
That portion of the assets and liabilities whose distribution is
supervised by the courts in the probate process.
Probationary Period:
A period from the policy date to a specified time during which
no sickness coverage is effective. This is designed to eliminate
any sickness actually contracted before the policy went into
effect.
Product Liability:
Legal liability incurred by a manufacturer, merchant, or
distributor because of injury or damage resulting from the use of
their product.
Product Liability Insurance:
Protection against financial loss arising out of the legal liability
incurred by a manufacturer, merchant, or distributor because of
injury or damage resulting from the use of a covered product.
Proof of Loss:
Documentation presented to the insurance company by the
insured in support of a claim so that the insurer can determine its
liability under the policy.
Property Insurance:
Insurance providing financial protection against the loss of, or
damage to, real and personal property caused by a covered
peril.
Provision:
A clause, sentence, or paragraph which of an insurance contract
describes or explains a feature, benefit, condition, or requirement
of any insurance protection afforded by the contract.
Proximate Cause:
The effective cause of loss or damage; an unbroken chain of
events between the occurrence and damage.
Punitive Damages:
A court awarded amount that exceeds the economic losses and
general damages of a defendant and is intended solely to punish
the plaintiff because of reckless or malicious acts.
Pure Risk:
Uncertainty whether a loss will occur. Only pure risks are insurable.
