Insurance Terms
Package Insurance: A policy combining two or more lines of insurance which might otherwise have been written as separate policies.
Participating Policy: A policy on which dividends are paid.
Particular Average: In Ocean Marine insurance, a partial loss which is not part of a general sacrifice of property (general average).
Payment Bond: A type of Contract bond which guarantees that bills for labor and materials will be paid to the contractor as they are due. Also called Labor and Materials bond. See Contract bonds.
Peak Season Endorsement: A Commercial Property endorsement which provides for higher limits to apply during specific periods of the year when inventory is at a peak.
Penalty: The amount of a bond.
Percentage Deductible: A deductible which requires a deduction from the loss of a percentage of the value of the property.
Performance Bonds: Contract bonds which guarantee that jobs will be completed by the contractor according to contract specifications.
Peril: The cause of loss. Examples include fire, windstorm or explosion.
Perils Of The Sea: Unique perils to which property in transit by water is exposed. Includes unusual action of wind or waves, stranding, lightning, collision and sinking.
Personal Articles Floater: Personal Inland Marine insurance which provides all risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp
collections and coin collections.
Personal Auto Policy: Easy-to-read auto policy which provides broad coverage for both owned and non-owned autos, used, maintained or operated by the insured and family.
Personal Effects Floater: Provides all risk coverage for individuals and families who desire to insure their personal belongings (baggage) while traveling or vacationing.
Personal Injury Protection: A coverage provided in Auto policies in the state of Florida that provides coverage for the insured’s own injuries on a first-party basis, without regard to fault. This is a required coverage and must be carried by all owners of motor vehicles in Florida.
Personal Liability Policy: Provides broad coverage for an individual’s or family’s liability exposure for bodily injury or property damage. Similar to coverage included in Homeowners contract.
Personal Property Floater: Personal Inland Marine floater which provides all risk coverage on unscheduled personal property.
Physical Damage: In auto insurance, damage or loss to the insured’s own autos or autos in the insured’s care, custody or control.
Physical Hazard: The material, structural or operational features of the property to be insured. It involves the condition or type of property, not the persons owning or managing it.
Physicians and Surgeons Coverage Form: Part of the Commercial Inland Marine Coverage part of the Commercial Package policy. It covers insureds in the medical and dental professions for loss to medical, surgical and dental equipment, furniture, fixtures and improvements or betterments.
Physicians Coverage: A type of Health insurance that reimburses the insured for nonsurgical care provided by a physician.
Policy: An insurance contract.
Policy Period: The period during which the policy contract is in force and affords protection, from inception date to expiration date.
Pollution Liability Coverage: A form of liability insurance that can be added to the CGL section of the Commercial Package policy to provide limited coverage for pollution.
Position Schedule Coverage: A form of Employee Dishonesty insurance which covers only people who fill positions named in the policy.
Premises: The particular location of property as designated in the policy.
Premises Burglary Coverage Form: One of the Commercial Crime Coverage forms which are a part of the Commercial Package policy. Provides coverage for property other than money and securities if caused by burglary or attempted burglary or robbery of a watchperson.
Premises Theft And Robbery Outside The Premises Coverage: One of the Commercial Crime Coverage forms which are a part of the Commercial Package policy. Covers property other than money and securities against any act of stealing from within the premises and robbery outside the premises.
Premium: The consideration (price) paid by the insured to the insurer for insurance protection over a specified period.
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.
Preservation Of Property: This is a property insurance coverage, sometimes known as a removal, which provides coverage for property that has been removed from the premises to protect it following a covered loss.
Primary Insurance: When two or more coverages or policies apply to the same loss, the one which pays first, up to its limit of liability or the amount of the loss, whichever is less. See excess insurance.
Principal: In bonds, the party who promises to do (or not to do) a specific thing.
Private Passenger Autos: Ordinary cars, station wagons and jeeps, utility autos (pickups, panel trucks and delivery vans of 1,500 lbs. or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto.
Pro Rata Cancellation: Calculation of the premium charge for a cancelled policy based upon the exact time the protection had been in force.
Probate Bond: Fiduciary bond dealing with those who administer estates of a deceased person.
Producer: A term commonly applied to agent, solicitor, or other person who sells insurance, producing business for the insurer.
Products and Completed Operations: A form of insurance which covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately.
Professional Liability: Liability arising out of the rendering or failure to render services of a professional nature.
Proof Of Loss: (1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer. (2) The statement, signed and sworn by the insured, setting forth the claim information required by the policy.
Property Damage: A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.
Property Insurance: Insurance that indemnifies the person with an interest in physical property for its loss or the loss of its income-producing ability.
Proposal: A written presentation to a prospect indicating various coverages, options, and may also include premiums.
Prospect: The person or entity for whom the agent is trying to provide insurance coverage.
Protected Risk: A risk located in an area served by a fire department.
Protection: 1) A term denoting the insurance provided under a policy. 2) A term indicating the existence of fire fighting facilities in the area which the risk is located.
Protection And Indemnity: In Ocean Marine insurance, a form of liability insurance.
Proximate Cause: A fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence.
Public Official Bonds: A category of Surety bonds furnished by principals who are elected or appointed to fill positions of trust, guaranteeing their faithful and honest performance in office.
Punitive Damages: Damages that punish the wrongdoer for antisocial actions, rather than compensating for loss.
Pure Risk: Uncertainty whether a loss will occur. Only pure risks are insurable.
Preferred Provider Organization (PPO): A group of doctors and hospitals who join together to dispense medical services to specified user groups at discounted costs. This type of organization differs from a Health Maintenance Organization (HMO) in that the medical care providers are not economically tied to one another but rather to fee schedules.
Policy Forms: Although some carriers use standardized policy forms, many do not. Assumptions should not be made that coverage is according to standard forms. If uncertain, please ask us to provide a specimen policy form for review.
