Insurance and risk management terminology · MLC-0106

Insurance and risk management terms: P (326)

• Package policyA single insurance contract that combines two or more distinct types of coverage, such as property and...
• Paid businessNew insurance policies for which the initial premium has been collected and processed by the insurer. It...
• Paid loss retrospective rating planA method of adjusting an insurance premium after the policy period based on the actual losses paid by the...
• Paid lossesThe total amount of money that an insurer has disbursed to policyholders or third parties to settle claims...
• Paid up at age life insuranceA form of limited payment whole life insurance where premiums are payable only for a specified number of...
• Paid up life insuranceA life insurance policy for which all required premiums have been paid, and no further payments are necessary...
• Paid-in capitalThe total amount of money or assets that shareholders have contributed to a company in exchange for stock...
• Paid-up additionsAdditional units of single-premium whole life insurance purchased with policy dividends from a participating...
• Pain and sufferingNon-economic damages awarded in personal injury lawsuits to compensate for the physical discomfort, emotional...
• Pair or set clauseA provision in property insurance policies that addresses the valuation of a loss when one item of a pair or...
• Panel counselA group of law firms or individual attorneys pre-approved and retained by an insurance company to represent...
• ParalegalA legal professional qualified through education, training, or work experience to perform substantive legal...
• Parallel proceedingsSimultaneous investigations or legal actions conducted by different governmental bodies or private parties...
• Parameter riskThe risk that the parameters used in a model, such as those for pricing or reserving, are inaccurate or...
• Parametric insuranceA type of insurance that pays out a pre-agreed amount if a specific, measurable event occurs, rather than...
• Parcel post coverageInsurance designed to protect against loss or damage to goods shipped through postal services. This coverage...
• Parent companyA company that owns a controlling interest in another company, known as a subsidiary. This ownership...
• Pari passu ruleA principle stating that all creditors within the same class are treated equally and receive proportional...
• Parol evidenceOral or extrinsic evidence that is not contained within the written terms of a contract. In insurance law...
• Partial disability insuranceCoverage that provides benefits when an illness or injury prevents an insured person from performing some...
• Partial lossA loss that does not completely destroy or render worthless the insured property, but rather causes damage...
• Partial retentionThe practice where an insured party assumes responsibility for a portion of a potential loss, while...
• ParticipantAn individual who is covered under an employee benefit plan, such as a pension plan, health insurance plan...
• ParticipatingDescribing a life insurance or annuity policy that allows the policyholder to share in the insurer's surplus...
• Participating communityA community for which FEMA has authorized the sale of flood insurance under the NFIP.
• Participating policyA type of life insurance policy that allows the policyholder to receive dividends from the insurer's surplus...
• Participating providerA healthcare professional, hospital, or facility that has a contractual agreement with an insurance plan or...
• Participating provider networkA group of healthcare providers, including doctors, hospitals, and other medical facilities, that have...
• Participating reinsuranceA form of proportional reinsurance where the reinsurer shares in the premiums, losses, and expenses of the...
• Participation in the NFIPParticipation in the National Flood Insurance Program (NFIP) is voluntary. To join, the community must:
• Particular average PAA partial loss or damage to insured property in marine insurance that is borne solely by the owner of the...
• PartnerAn individual or entity that shares in the ownership, profits, and liabilities of a business enterprise. In...
• Partner controlled insurance program (PCIP)A wrap-up insurance program for a large construction project that is jointly controlled by the project owner...
• Partner trackA structured career path within professional service firms, such as law firms or consulting agencies, that...
• PartyAn individual, group of individuals, or legal entity such as a corporation that has a role or interest in an...
• Party wallsA wall shared by two adjoining properties, standing on the boundary line between them, where each owner has...
• Party-in-interest transactionsFinancial dealings between an employee benefit plan and individuals or entities closely connected to it...
• Passive foreign investment company (PFIC)A foreign corporation that meets specific income or asset tests, primarily designed to prevent U.S. taxpayers...
• Passive lossA financial loss incurred from business activities in which the taxpayer does not materially participate...
• Passive restraint systemA safety device in a vehicle that operates automatically to protect occupants during a collision without...
• Pass-through entityA business structure, such as a partnership, S corporation, or limited liability company (LLC), that passes...
• Pastoral professional liability insuranceA specialized form of professional liability insurance designed to protect clergy members, counselors, and...
• Patch managementThe systematic process of identifying, acquiring, testing, and applying software updates or 'patches' to...
• Patent infringementThe unauthorized use, sale, offer for sale, or import of a patented invention without the patent holder's...
• Patient compensation fundsState-established funds designed to provide an additional layer of medical malpractice coverage for...
• Patient dumpingThe illegal practice of refusing to treat or transferring indigent or uninsured patients from one hospital to...
• Patient wearableA technological device worn by a patient that collects and transmits health-related data, such as heart rate...
• Patient's Bill of Rights legislationA set of laws, existing at both federal and state levels, that define and protect the relationship between...
• Paul v. VirginiaA landmark 1869 U.S. Supreme Court decision that held insurance was not commerce and therefore not subject to...
• Pay practices claimsLegal actions brought by employees against employers alleging violations related to wages, hours, and other...
• Pay transparencyThe practice of openly communicating information about employee compensation within an organization...
• Payer death riderAn optional provision added to a life insurance policy or annuity contract that waives future premium...
• Payment bondA type of surety bond that guarantees subcontractors, laborers, and material suppliers will be paid for their...
• Payment Card Industry Data Security Standard (PCIDSS)A set of security standards designed to protect cardholder data during credit and debit card transactions...
• Payment card industry fines and assessments insuring agreementAn insuring agreement in a cyber policy that pays amounts the insured owes under its merchant agreement to a...
• Payor benefitA rider or provision added to a juvenile life insurance policy, such as one for a child, that waives premium...
• Payout profileA graphical representation or description of the potential financial outcomes of an investment or insurance...
• PayrollThe total remuneration paid to employees, including wages, salaries, commissions, bonuses, and other forms of...
• Payroll auditA review conducted by an insurer to verify the accuracy of payroll figures reported by a business for...
• Payroll deductionAn amount withheld from an employee's gross wages by an employer for the payment of insurance premiums or...
• Payroll limitationA cap or maximum amount of an individual employee's payroll that is used to calculate workers' compensation...
• Peer reviewA process in healthcare where medical professionals evaluate the quality and appropriateness of services...
• Peer-to-peer sharingA model where individuals directly exchange goods, services, or assets with each other, facilitated by a...
• Penal sumThe maximum amount of money that a surety company is obligated to pay under a bond. This sum represents the...
• PensionA retirement plan that provides a regular income to employees after they cease working. In a defined benefit...
• Pension Benefit Guaranty Corporation (PBGC)A federal agency that protects the retirement incomes of over 31 million American workers, retirees, and...
• Pension Protection Act of 2006A federal law enacted to strengthen the funding of defined benefit pension plans and provide greater...
• Per capitaA method of dividing insurance proceeds or an estate in which each person in a designated class receives an...
• Per cause maximum limitA limit in a medical expense or health plan on the total benefits payable for expenses arising from one...
• Per diem business interruption coverageA type of business interruption insurance that provides a fixed daily payment for each day a business is...
• Per occurrence limitThe maximum amount an insurer will pay for all claims arising from a single incident or event, regardless of...
• Per occurrence limitation of liability provisionA clause within an insurance policy that restricts the insurer's total financial responsibility for all...
• Per person limitThe maximum amount an insurer will pay for injuries sustained by any one individual in a single incident...
• Per risk excess reinsuranceA form of excess of loss reinsurance where the reinsurer covers losses exceeding a specified retention limit...
• Per stirpesA method of distributing an inheritance or insurance proceeds where the descendants of a deceased beneficiary...
• Percentage participationThe portion of a loss that an insured individual or entity must bear, expressed as a percentage of the total...
• Perfect hedgeA financial strategy designed to completely eliminate the risk of loss from an asset or liability by taking...
• Perfluoroalkyl substancesA group of synthetic chemicals used in many industrial and consumer products for their resistance to heat...
• Performance bondA type of surety bond issued by an insurer or bank to a contractor, guaranteeing that the contractor will...
• Performance ratioA test of an insurer's or reinsurer's financial strength, such as the solvency ratios used by rating...
• PerilA cause of loss or damage to property or persons, such as fire, theft, windstorm, or liability. Insurance...
• Peril of the seaA cause of loss in marine insurance referring to extraordinary occurrences at sea, such as storms, waves...
• Per-loss deductibleThe amount of a covered loss that the policyholder must pay for each individual claim or occurrence before...
• Permanent life insuranceA type of life insurance that provides coverage for the entire lifetime of the insured, as long as premiums...
• Permanent partial disabilityA lasting impairment resulting from a work-related injury or illness that reduces an employee's earning...
• Permanent total disabilityA state where an injured worker is unable to return to any gainful employment due to a work-related injury or...
• Permit for floodplain developmentA permit is required before construction or development begins within any Special Flood Hazard Area (SFHA)...
• Personal and advertising injuryCoverage provided under a commercial general liability (CGL) policy for specific offenses related to a...
• Personal articles floaterA separate policy or endorsement that provides specific, all-risk coverage for valuable items that exceed the...
• Personal auto policy (PAP)A standard insurance contract designed to cover individuals and families for risks associated with owning...
• Personal effects floaterAn inland marine floater that covers the personal effects of travelers, such as clothing, luggage, and...
• Personal Information Protection and Electronic Documents Act (PIPEDA) of 2000A Canadian federal law that governs how private sector organizations collect, use, and disclose personal...
• Personal injury PIHarm, other than bodily injury, that arises from specific offenses such as libel, slander, false arrest...
• Personal liability coverageProtection provided by a homeowner's or renter's insurance policy against claims arising from bodily injury...
• Personal linesA category of insurance products designed to protect individuals and families from financial losses related...
• Personal profit exclusionA common exclusion in directors and officers (D&O) liability insurance policies that denies coverage for...
• Personal propertyAll tangible property other than real estate, including furniture, clothing, electronics, and other movable...
• Personal risk management (PRM)The systematic process by which individuals identify, assess, and control potential financial losses arising...
• Personal umbrella policy PUPAn insurance policy that provides additional liability coverage beyond the limits of underlying auto...
• Personally identifiable information (PII)Any data that can be used to identify a specific individual, either directly or indirectly. This includes...
• Personnel riskThe potential for financial loss to an organization resulting from the actions or inactions of its employees...
• PhishingA cybercrime tactic involving deceptive communications, typically emails or text messages, designed to trick...
• Physical hazardA tangible characteristic or condition of property, persons, or operations that increases the probability or...
• Physical impairmentA bodily condition that affects a person's ability to perform major life activities, such as walking, seeing...
• Physical-mental injuriesInjuries that involve both bodily harm and psychological or emotional distress, where the mental component is...
• Pilot warrantyA clause in an aviation insurance policy that specifies the minimum qualifications and experience required...
• Placement service agreement (PSA, MSA)An agreement between an insurance broker and an insurer under which the insurer pays the broker compensation...
• Placement slipsDocuments prepared by an insurance broker that summarize the key terms and conditions of a proposed insurance...
• Plain language lawsLegislation requiring insurance policies and other consumer contracts to be written in clear, concise, and...
• PlaintiffThe party who initiates a lawsuit by filing a complaint with a court, seeking a legal remedy for an alleged...
• Planned retentionThe portion of a risk that an organization or individual deliberately chooses to bear financially, rather...
• PlanningThe systematic process of setting objectives, developing strategies, and outlining actions to achieve desired...
• PlatooningThe practice of linking two or more trucks in a convoy using vehicle-to-vehicle communication and automated...
• PleadingsFormal written statements filed with a court by parties in a lawsuit, setting forth their claims, defenses...
• Pluvial floodingFlooding caused by heavy rainfall that overwhelms the drainage capacity of an area, leading to surface water...
• Point of service (POS) planA type of managed care health insurance plan that combines characteristics of health maintenance...
• Point-of-entry treatment deviceA water treatment system installed at the main water line where it enters a home or building, designed to...
• Point-of-use treatment deviceA system that treats water at a single fixture, such as a kitchen sink faucet or a showerhead, rather than...
• Police professional liability insuranceCoverage designed to protect law enforcement agencies and their officers from claims arising out of their...
• PolicyA written contract between an insurer and an insured that details the terms and conditions of insurance...
• Policy conditionsSpecific provisions within an insurance contract that outline the rights and duties of both the insured and...
• Policy definitionsA section within an insurance contract that specifies the precise meaning of key terms used throughout the...
• Policy expense allowanceAn amount included in the premium calculation for certain types of insurance, particularly life insurance, to...
• Policy feeA one-time or recurring flat charge added to an insurance premium to cover the administrative costs of...
• Policy loanA loan offered by a life insurance company to a policyholder, using the cash value of their permanent life...
• Policy ownerThe individual or entity who holds the rights and responsibilities associated with an insurance contract. The...
• Policy periodThe specific duration during which an insurance policy provides coverage, defined by an effective date and an...
• Policy registersA detailed, chronological record of all insurance policies issued by an insurer or managed by an agency. It...
• Policy territoryThe specific geographic area within which a loss must occur for coverage to apply under an insurance policy...
• Policy writing agentAn insurance agent authorized by an insurer to issue and countersign insurance policies on its behalf. This...
• Policy yearThe twelve-month period during which an insurance policy is in effect, starting from its inception date or...
• Policy year experienceA method of aggregating and analyzing insurance statistics by matching all premiums and losses associated...
• PolicyholderThe person, company, or other entity that owns an insurance policy and is entitled to its protections and...
• Policyholder dividendsA return of a portion of the premium paid by policyholders from a mutual insurance company, based on the...
• Policyholder surplusAn insurer's net worth, calculated as the difference between its admitted assets and its total liabilities...
• Political risk insurance (PRI)Insurance that protects businesses against financial losses resulting from government actions or political...
• Political violenceHostile acts motivated by political objectives, including war, civil unrest, strikes, riots, terrorism, and...
• PollutantAny solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids...
• Pollutant standard index (PSI)A numerical scale used to report daily air quality by measuring the concentration of major atmospheric...
• Pollutants, see Pollutant
• PollutionThe presence or introduction of contaminants into the environment, as specifically defined within an...
• Pollution exclusionA standard provision in many insurance policies, particularly general liability and property forms, that...
• Ponding hazard1. A flood hazard that occurs in flat areas when there are depressions in the ground that collect "ponds" of...
• Ponzi schemeA fraudulent investment operation that pays returns to earlier investors with money taken from later...
• PoolAn arrangement where multiple insurers or entities combine their resources to share risks that are too large...
• PopulationThe number of individuals residing in a geographic area. The population figure is based on the most recent...
• Port riskA type of marine insurance coverage for a vessel while it is laid up or undergoing repairs in port. This...
• Portable benefitsBenefits that are not tied to a single employer and can be carried by an individual from one job to another...
• PortfolioThe entire collection of policies or investments held by an insurer, agent, or brokerage. For an insurer, the...
• Portfolio reinsuranceA type of reinsurance agreement where an entire block of existing insurance policies, rather than individual...
• Portfolio returnThe total gain or loss generated by an investment portfolio over a specific period, expressed as a percentage...
• Portfolio runoffThe process of allowing an existing book of insurance business to expire naturally without writing new...
• Portfolio transferThe formal process of moving a block of insurance policies, along with their associated assets and...
• Post-emergency recoveryThe phase following an immediate emergency response, focused on restoring affected communities and systems to...
• Post-FIRM building1. A building for which construction or substantial improvement occurred after December 31, 1974 or on or...
• Post-judgment interestThe interest that accrues on a monetary award granted by a court from the date of the judgment until the...
• Postmortem dividendA dividend paid on a life insurance policy after the death of the insured, covering the period from the last...
• Power of attorneyA legal document that grants one person, the agent or attorney-in-fact, the authority to act on behalf of...
• Practice insurance policyA professional liability policy, most often written for architects and engineers, that covers the firm's...
• Preadmission review (PAR)A process conducted by health insurers or managed care organizations to evaluate the medical necessity of a...
• PreambleAn introductory statement in an insurance policy that precedes the insuring agreement and other sections. It...
• Preauthorized check planAn arrangement that allows an insurer to automatically withdraw premium payments directly from a...
• PrecedentA legal principle or rule established in a previous court case that is considered authoritative for deciding...
• Pre-claim advice creditA reduction in the self-insured retention or deductible that some liability insurers grant when the insured...
• Predecessor firm coverageInsurance protection for claims arising from professional services rendered by a prior business entity that...
• Predictive analytics (PA) or modelingThe use of statistical algorithms and machine learning techniques to analyze historical and current data to...
• Predominant causeThe primary or most significant factor that directly leads to a loss or damage, even if other contributing...
• Preexisting conditionA health condition for which a person received medical advice or treatment before enrolling in a new health...
• Preferred provider organization (PPO)A type of managed care health insurance plan where members pay less if they use providers within the plan's...
• Preferred risk policy1. A lower-cost Standard Flood Insurance Policy (SFIP) written under the Dwelling Form or General Property...
• Preferred risk PRPAn underwriting classification for an insurance applicant who presents a lower-than-average chance of loss...
• Pre-FIRM building1. A building for which construction or substantial improvement occurred on or before December 31, 1974 or...
• Pregnancy Discrimination Act (PDA) of 1978A federal law that amended Title VII of the Civil Rights Act of 1964, prohibiting discrimination based on...
• Prejudgment interestThe interest that accrues on a monetary award from the date the cause of action arose or the loss occurred...
• Preliminary termAn initial period of a life insurance policy, usually one year, during which the coverage is treated as term...
• PremisesThe land and buildings where an insured operates or lives, as identified in the policy or by ownership or...
• Premises burglary coverageCrime insurance that pays for loss of or damage to property other than money and securities when a burglar...
• Premises theft and outside robbery coverage form HA crime coverage form that insures property other than money and securities against theft from inside the...
• Premises-operationsA category of general liability exposure that covers bodily injury and property damage arising from the...
• PremiumThe amount of money an individual or business pays to an insurance company for coverage against specified...
• Premium, advanceA payment made by a policyholder to an insurer before the coverage period begins or before the full premium...
• Premium auditA review conducted by an insurer at the end of a policy period to verify the accuracy of the exposure basis...
• Premium capacityThe maximum amount of insurance premium an insurer or the entire insurance market is willing and able to...
• Premium discountA reduction applied to the standard premium of a policy, most commonly in workers' compensation, where a...
• Premium loadAn additional charge added to the net premium of an insurance policy to cover the insurer's operating...
• Premium loanA loan against the cash value of a life insurance policy that pays an unpaid premium, so the policy stays in...
• Premium noticeA formal statement sent by an insurer to a policyholder, detailing the amount of the next premium payment due...
• Premium payment planA structured arrangement that allows policyholders to pay their insurance premiums in installments rather...
• Premium prepaymentThe payment of insurance premiums in advance of their due dates, often for multiple future periods. This...
• Premium taxA tax that a state levies on insurers, calculated as a percentage of the premiums collected on policies...
• Premiums earnedThe portion of an insurance premium that an insurer has recognized as income for coverage already provided...
• Prepaid amount (total)The total amount that must be submitted with an application or renewal in order to be acceptable for...
• Prepaid legal plansInsurance or service plans that provide subscribers with access to legal services for a fixed monthly or...
• Prepaid premium (total)1. The amount on the application (excluding the Preferred Risk Policy [PRP] Application) that includes the...
• Preponderance of evidenceThe standard of proof in most civil cases, requiring that the evidence presented by one side is more likely...
• Present value PVThe current worth of a future sum of money or stream of cash flows, discounted at a specific rate of return...
• Presentment of payment (premium)The date of the check or credit card payment by the applicant or applicant’s representative if the premium...
• Pre-set allocation provisionA clause in a directors and officers (D&O) liability insurance policy that establishes a predetermined method...
• PresumptionA legal inference that a particular fact is true, based on the proven existence of other facts. In insurance...
• Presumptive indemnification provisionA clause in a directors and officers (D&O) liability insurance policy that assumes the company has...
• Primary and noncontributoryA contractual provision in an insurance policy, typically an additional insured endorsement, stating that the...
• Primary beneficiaryThe individual or entity designated by the policyholder to receive the proceeds of an insurance policy, such...
• Primary coverThe first layer of insurance that responds to a covered loss, up to its policy limits, before any excess or...
• Primary driverThe individual who uses a specific vehicle most frequently, as designated on an automobile insurance policy...
• Primary liabilityThe direct legal responsibility for an action or omission that causes harm or injury to another party. This...
• Primary payerThe insurance plan or entity that has the first responsibility to pay for healthcare services when an...
• Primary residenceA single family building, condominium unit, apartment unit, or unit within a cooperative building that will...
• Primary residential propertyEither a primary residence or the contents within a primary residence, or both.
• PrincipalThe party for whom an agent acts and who is bound by the agent's authorized acts, such as the insurer for an...
• Principal residenceA single-family dwelling in which, at the time of loss, the named insured or the named insured’s spouse has...
• Principal sumThe maximum lump-sum benefit payable under an accidental death and dismemberment (AD&D) policy for a...
• Principally above ground buildingA building that has at least 51% of its Actual Cash Value (ACV), including machinery and equipment, above...
• Principle of indemnificationThe core tenet in insurance that an insured should be restored to the same financial position they were in...
• Prior acts coverageAn insurance policy feature that extends coverage to claims arising from incidents or wrongful acts that...
• Prior and pending litigation exclusionA provision in an insurance policy that excludes coverage for claims arising from lawsuits that were filed or...
• Prior work exclusionA commercial general liability exclusion, added mainly for contractors, that removes coverage for bodily...
• Priority of payments provisionA clause within a Directors and Officers (D&O) liability insurance policy that dictates the order in which...
• Privacy notification and crisis management expense coverageInsurance protection for the costs associated with responding to a data breach or privacy incident. This...
• Private carrierA business that transports its own goods in vehicles it owns or operates, as opposed to hauling freight for...
• Private company directors and officers liability insuranceLiability insurance designed to protect the directors, officers, and sometimes employees of privately held...
• Private crop-hail insuranceA type of agricultural insurance purchased from private insurers to protect crops specifically against damage...
• Private equity firmAn investment management company that makes investments directly into private companies or conducts buyouts...
• Private letter rulingA written determination from the Internal Revenue Service (IRS) that interprets and applies tax regulations...
• Private placementThe direct offering and sale of securities to a limited number of sophisticated investors, such as insurance...
• Private Securities Litigation Reform Act of 1995A federal law enacted to curb abusive securities fraud lawsuits, particularly class actions against public...
• Privately held corporationA company whose ownership is concentrated among a small number of shareholders and whose stock is not traded...
• Privileged communicationConfidential discussions between certain individuals in a protected relationship, such as attorney-client or...
• Privity of contractThe direct contractual relationship between two or more parties, which is a prerequisite for bringing a...
• Pro forma financial statementsFinancial reports that project a company's future financial performance based on certain assumptions or...
• Pro rata cancellationThe termination of an insurance policy where the unearned premium is returned to the policyholder in...
• Pro rata distribution clause PRDA property insurance provision that divides a single limit covering several locations or items among them in...
• Pro rata PRA method of calculating a premium, refund, or loss payment in proportion to a specific period or share. In...
• Pro rata reinsuranceA form of reinsurance where the reinsurer shares a proportional part of the premiums and losses of the ceding...
• Pro seRepresenting oneself in legal proceedings without the aid of a lawyer. An individual acting pro se assumes...
• ProbabilityThe mathematical measure of the likelihood that a specific event will occur. In insurance, it quantifies the...
• Probability analysisThe systematic application of statistical methods to assess the likelihood of future events and their...
• Probability of ruinThe likelihood that an insurer's surplus or capital will fall below a specified minimum level, often zero...
• Probable maximum loss (PML)An estimate of the largest loss that an insurer is likely to sustain from a single event or a series of...
• Probation1. A FEMA-imposed change in a community's status resulting from violations and deficiencies in the...
• Probation surcharge (premium)A flat charge that the policyholder must pay on each new or renewal policy issued covering property in a...
• Probationary periodA specific duration at the beginning of a new insurance policy, particularly in health or disability...
• ProcessA sequence of related activities or tasks performed by an organization to achieve a specific business...
• Process riskThe risk of loss arising from flawed, poorly designed or incorrectly executed business processes, such as...
• ProducerAn individual or entity licensed to sell insurance products on behalf of one or more insurance companies...
• Producer-owned reinsurance company (PORC)A reinsurance company established and owned by an insurance producer or agency to reinsure a portion of the...
• ProductAny goods or products, other than real property, that are manufactured, sold, handled, distributed, or...
• Product liabilityThe legal responsibility of manufacturers, distributors, and sellers for injuries or damages caused by...
• Product liability insuranceCoverage that protects manufacturers, distributors, and retailers from financial losses due to claims of...
• Product recallThe process of retrieving a defective or unsafe product from the market, either voluntarily by the...
• Production contractsAgreements in which a farmer or rancher raises crops or livestock to the buyer's specifications for a...
• Production of documentsThe legal process in which parties to a lawsuit are required to provide relevant documents, electronic data...
• Products guarantee legal liabilityLegal liability a manufacturer or seller bears when its product fails to perform its intended function, such...
• Products tampering insuranceCoverage for financial losses incurred by a business due to malicious alteration or contamination of its...
• Products-completed operations PCOA component of commercial general liability insurance that covers bodily injury and property damage arising...
• Professional liability PLInsurance that protects professionals, such as doctors, lawyers, architects, and consultants, against claims...
• Professional reinsurerAn insurance company whose primary business is assuming risk from other insurance companies, rather than...
• Professional services exclusionA clause in a Directors and Officers (D&O) liability insurance policy that removes coverage for claims...
• Profit center captivesA type of captive insurance company that is established with the primary goal of generating underwriting...
• Profit commissionA contingent payment made by a reinsurer to a ceding insurer, or by an insurer to an agent or broker, based...
• Profit sharing planA type of defined contribution retirement plan that allows an employer to make discretionary annual...
• ProgramA specialized insurance offering designed for a specific niche market or affinity group, characterized by a...
• Program businessA specialized line of insurance for a niche group of policyholders with similar risk characteristics...
• Program deficiencyCommunities participating in the National Flood Insurance Program (NFIP) must have adequate permitting and...
• Program managerAn entity, often a managing general agent (MGA) or program administrator, responsible for developing...
• Progressive design-buildA two-phase project delivery method where an owner selects a design-build team based on qualifications and...
• Progressive injury or damageBodily injury or property damage that occurs gradually over time rather than from a single, sudden event...
• Prohibited riskA type of exposure or activity that an insurer will not underwrite or provide coverage for, due to its high...
• Prohibited transaction exemption (PTE)A specific administrative exemption granted by the Department of Labor from certain transactions that would...
• Prohibited transactionsDealings between an employee benefit plan and a party in interest, or a related disqualified person under the...
• Prohibition of voluntary payments provisionA clause in an insurance policy that prevents an insured from making payments or assuming obligations to a...
• Project liability insuranceA liability policy written for one named construction project rather than for the insured's operations as a...
• Project management protective liability (PMPL) insuranceA type of professional liability insurance that protects the owner or developer of a construction project...
• PromiseeThe party to whom a promise is made in a contract or agreement. In the context of insurance, the promisee is...
• PromisorA party who makes a promise to another party, the promisee, within a contractual agreement. This individual...
• Promissory estoppelA legal doctrine that prevents a party from going back on a promise, even if a formal contract does not...
• Promissory noteA written, unconditional promise by one party (the maker) to pay a specified sum of money to another party...
• Proof of lossA formal statement made by an insured to an insurer regarding a loss event, providing details and...
• Proper openings - enclosures (applicable to Zones A, A1-A30, AE, AO, AH, AR and AR dual)All enclosures below the lowest elevated floor must be designed to automatically equalize hydrostatic flood...
• Property Claim Law Associate (PCLA)A claims law designation from the American Educational Institute, earned by completing its Legal Principles...
• Property Claim Law Specialist (PCLS)A claims law designation from the American Educational Institute, earned by completing its Property Claim Law...
• Property damage (PD)Physical injury to tangible property, which in liability insurance means damage to another party's property...
• Property firewallA physical barrier constructed to prevent the spread of fire between different sections of a building or...
• Property insuranceCoverage that protects physical assets against risks such as fire, theft, vandalism, and natural disasters...
• Property removed to safety expenseUp to $1,000 of reasonable expenses incurred by the insured to temporarily remove insured property from the...
• Property transfer liability insuranceCoverage designed to protect parties involved in the sale or transfer of real estate from environmental...
• Proportional liabilityA legal principle where multiple parties responsible for a loss are held liable only for their respective...
• Proportional reinsuranceA type of reinsurance where the reinsurer assumes a predetermined percentage of the ceding insurer's premiums...
• ProrationDistributing an amount in proportion to a related factor. In insurance it most often means pro rata premium...
• ProspectAn individual or entity identified as a potential customer for insurance products or services. This person or...
• ProspectingThe process of identifying and qualifying potential clients for insurance or financial products. This...
• Prospective ratingA method of calculating insurance premiums based on an assessment of future expected losses and expenses...
• Prospective reserveA calculation of the present value of future benefits minus the present value of future net premiums for an...
• Protection and indemnity (P&I) insuranceA form of marine insurance that covers shipowners for third-party liabilities arising from the operation of...
• Protection classesA grading system used by insurers to assess the fire protection capabilities of a specific geographic area...
• Protective liability insuranceCoverage for a general contractor against liability arising from the acts or omissions of independent...
• Protective orderA legal directive issued by a court to prevent harm or harassment to an individual or to safeguard sensitive...
• Protective professional indemnity insuranceA specialized form of professional indemnity insurance designed to protect a main contractor or project owner...
• Protective safeguards endorsementAn endorsement that conditions coverage on the insured keeping scheduled protective safeguards, such as...
• ProviderAn individual or entity that supplies healthcare services, such as a doctor, hospital, or clinic. In health...
• Provisional notice of cancellation (PNOC)A notice that either party to a continuous reinsurance contract can give to signal that it may end the...
• Provisional ratingA method for placing flood coverage prior to the receipt of a FEMA Elevation Certificate.
• Proximate causeThe direct and immediate cause of a loss, without which the loss would not have occurred. It is the active...
• Psychological rehabilitationA structured program designed to restore mental and emotional functioning in individuals who have experienced...
• Public adjuster PAA claims professional hired by a policyholder to represent their interests in negotiating a settlement with...
• Public Company Accounting Oversight Board (PCAOB)A private sector, non-profit corporation established by the Sarbanes-Oxley Act of 2002. It oversees the...
• Public domainThe status of intellectual property, such as inventions or creative works, for which no exclusive rights like...
• Public easementA legal right granted to the general public to use a specific portion of private land for a designated...
• Public employee dishonesty coverageInsurance protection for governmental entities against financial losses resulting from dishonest acts...
• Public Law 15A federal statute enacted in 1945, also known as the McCarran-Ferguson Act, that exempts the business of...
• Public liability insuranceA type of insurance that protects businesses and individuals against claims of injury or property damage...
• Public officials bondA type of surety bond that guarantees the faithful performance of duties by elected or appointed public...
• Public officials liability insuranceA type of errors and omissions (E&O) coverage that protects elected or appointed officials of governmental...
• Public or livery conveyance useThe use of a private passenger automobile for transporting people or goods for a fee, such as a taxi service...
• Public policy exceptionA legal principle that allows courts to invalidate or refuse to enforce certain contractual provisions...
• Public Risk Management Association (PRIMA)A professional organization dedicated to advancing the practice of risk management in the public sector. It...
• Publicly held corporationA company whose shares are traded on a stock exchange and are available for purchase by the general public...
• Public-private partnership P3A collaborative arrangement between a government entity and a private sector company for the financing...
• Publishers liabilityA type of insurance coverage designed to protect publishers against claims arising from the content they...
• Punitive damagesMonetary damages awarded by a court in addition to compensatory damages, intended to punish a defendant for...
• Purchasing groupA group of similar businesses or organizations that collectively purchase liability insurance from an...
• Pure captiveAn insurance company established and owned by a single non-insurance entity to underwrite the risks of that...
• Pure claims-made policyA claims-made liability policy that covers claims first made against the insured during the policy period...
• Pure endowmentA life insurance contract that pays a specified sum of money to the policyholder only if they survive to a...
• Pure loss costThe portion of an insurance premium that is directly attributable to covering expected claims and claim...
• Pure mortality costThe portion of a life insurance premium specifically allocated to cover the expected cost of death claims for...
• Pure riskA type of risk that presents only the possibility of loss or no loss, with no potential for gain. It is...
• Putative class actionA lawsuit filed by one or more individuals on behalf of a larger group of people who have suffered similar...

326 of 3,682 terms in Insurance and risk management terminology (MLC-0106). Request the full dataset.