Glossary of Insurance TermsA | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
Package Policy: A policy providing several different coverages combined into one policy. Refers to a policy providing both general liability insurance and property insurance
Payroll Limitation: A limit on the amount of payroll for certain classifications used for the development of premium
Peril: Cause of loss such as fire, windstorm, collision, etc.
Personal Auto Policy (PAP): A policy insuring private-passenger autos owned by individuals
Personal Injury: A General Liability coverage for insurable offenses that cause harm, other than bodily injury, such as false arrest, detention or imprisonment, malicious prosecution, wrongful eviction, slander, libel and invasion of privacy
Personal Injury Protection (PIP): An automobile insurance coverage mandated by law in some states. The statutes typically require insurers to provide or offer to provide first-party benefits for medical expenses, loss of income, funeral expenses and similar expenses without regard to fault
Personal Property: All tangible property not classified as real property such as contents
Policy: The printed document given to the insured, outlining the terms and conditions of the Insurance coverage.
Policy Fee: A one-time charge per policy that does not change with the size of the premium
Policy Holder: 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.
Policy Period: The term or duration of a policy including the effective and expiration dates
Pollutant: An irritant or contaminant, whether in solid, liquid, or gaseous form, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste
Preferred Risk: A positive characterisic of someone seeking to be insured. Usually means a better likely hood for long life, and usually means a lower premium.
Premises: The location where coverage applies
Premises-Operations: A category of hazard ordinarily insured by a general liability policy which is composed of those exposures to loss that fall outside the defined 'products-completed operations hazard,' including liability for injury or damage arising out of the insured's premises or out of the insured's business operations while such operations are in progress
Premium: The agreed upon, payment made to keep an insurance policy in force, usually a monthly payment.
Premium Flexibility: The policy holder's right to vary the amount of premium paid each month.
Primary Beneficiary: In life insurance, the beneficiary designated by the insured as the first to receive policy benefits.
Primary Policy: The insurance policy that pays first when you have a loss that's covered by more than one policy.
Pro Rata Cancellation: The cancellation of an insurance policy with the return premium being the full proportion of premium for the unexpired term of the policy, without penalty for early cancellation
Product: Items manufactured, sold, handled, distributed or disposed of by the named insured or others involved with the named insured in the course of their business. Includes containers, parts and equipment, product warranties and provision of or failure to provide instructions and warnings
Product Liability: The liability for bodily injury or property damage a merchant or manufacturer may incur as a consequence of some defect in the product sold or manufactured
Products-Completed Operations: General Liability coverage for liability arising out of the insured's products or business operations conducted away from the insured's premises once those operations have been completed
Professional Liability: Coverage designed to protect professionals such as physicians and real estate brokers, against liability incurred as a result of errors and omissions in performing professional services
Property Damage: In the general liability policy, a physical injury to property, resulting in the loss of use
Property Insurance: First-party insurance for real and personal property against physical loss or damage
Provisions: Details of an insurance policy which explain the benefits, conditions and other features of the insurance contract.