Life Insurance and Life Settlement Terms - P
Package Policy
A single insurance policy that combines more than a few coverages previously sold separately. Examples include homeowners insurance and commercial multiple peril insurance.
Paid-Up Additional Insurance Option
A choice available to the owners of participating life insurance policies, that lets the policy owner to use policy dividends to buy additional insurance on the insured’s life; the paid-up additional insurance is given on the same plan as the basic policy and in whatever face amount the dividend may provide at the insured’s attained age.
Paid-Up Policy
An insurance policy that needs no further premium payments but carries on to provide coverage.
Partial Disability
A disability that averts an insured from engaging in some of the duties of his or her usual occupation or from engaging in the occupation on a full-time basis.
Partial Disability Benefit
A flat amount specified in a disability income insurance policy that is payable when the insured suffers an incomplete disability. Typically the partial disability benefit is half the full disability benefit.
Participating Policy
A kind of insurance policy that allows policy owners to get policy dividends.
Paramedical Report
A report based on a physical examination and a medical history finished by a medical technician, a physician's assistant, or a nurse, rather than a physician. A paramedical report describes the health of a proposed insured and may serve as portion of an insurance application.
Pay-At-The-Pump
A system proposed in the 1990s in which auto insurance premiums would be paid to state governments during a per-gallon surcharge on gasoline.
Payout Options
The methods available to an annuity contract proprietor for the distribution of the annuity have accumulated value.
Payee
The person or party who is to get the proceeds of a term life insurance policy according with the terms of a settlement agreement.
Pension Benefit Guaranty Corporation
An independent federal government agency that administers the Pension Plan Termination Insurance program to make sure that vested benefits of employees whose pension plans are being terminated are paid when they come outstanding. Only defined benefit plans are covered. Benefits are paid up to some limits.
Pension
A lifetime monthly income salaried to a person who has retired.
Per Capita Beneficiary Designation
A kind of life insurance policy beneficiary designation in which the life insurance benefits are divided equally amongst the designated beneficiaries who survive the insured.
Per Stirpes Beneficiary Designation
A kind of life insurance policy beneficiary designation in which the life insurance benefits are divided amid a class of beneficiaries.
Peril
An exact risk or cause of loss covered by an insurance policy, like a fire, windstorm, flood, or theft.
Period Certain
The specified period over which an insurer makes periodic benefit payments under an annuity certain.
Personal Articles Floater
A policy or an addition to a policy used to cover private valuables, like jewelry or furs.
Personal Injury Protection Coverage/ PIP
Part of an auto insurance policy that covers the treatment of injuries to the driver and customers of the policyholder’s car.
Personal Lines
Property/casualty insurance products that are designed for and purchased by individuals, including homeowners and automobile policies.
Permanent and Total Disability
A condition that averts an insured from returning to any gainful employment.
Permanent Life Insurance
Life insurance that gives coverage all through the insured's lifetime and also provides a savings element that builds cash value.
Point-Of-Service Plan
Health insurance policy that lets the employee to opt between in-network and out-of-network care every time medical treatment is needed.
Policy
A written contract for insurance among an insurance company and policyholder stating details of coverage.
Policy Dividend Options
Ways in which the proprietor of a participating insurance policy may receive policy dividends.
Policyholders' Surplus
The sum of money remaining after an insurer’s liabilities are subtracted from its assets.
Political Risk Insurance
Coverage for businesses operating abroad against loss because of political upheaval like war, revolution, or confiscation of property.
Pollution Insurance
Policies that cover property loss and liability arising from pollution-associated damages, for sites that have been inspected and found uncontaminated. It is typically written on a claims-made basis so policies pay only claims presented during the term of the policy or within a specified time frame after the policy dies.
Pre-Existing Condition
According to most group health insurance policies, a situation for which an individual received medical care during the three months immediately prior to the effectual date of her coverage.
Preferred Provider Organisation
Network of medical providers which allege on a fee-for-service basis, but are paid on a negotiated, discounted fee schedule.
Preferred Risk Class
In insurance underwriting, the group of proposed insured who represent a considerably lower than average likelihood of loss within the context of the insurer’s underwriting practices.
Premises
The meticulous location of the property or a portion of it as designated in an insurance policy.
Premium
The price of an insurance policy, typically charged annually or semiannually.
Premium Reduction Option
A choice, available to the owners of partaking insurance policies, that allows the insurer to apply policy dividends toward the payment of renewal premiums.
Premium Tax
A state tax on premiums paid by its residents and businesses and accumulated by insurers.
Premiums In Force
The amountof the face amounts, plus dividend additions, of life insurance policies outstanding at a given time.
Premiums Written
The entirety premiums on all policies written by an insurer during a stated period of time, regardless of what portions have been earned.
Primary Beneficiary
The party designated to get the proceeds of a life insurance policy following the death of the insured.
Primary Company
In a reinsurance transaction, the insurance concern that is reinsured.
Primary Market
Market for new-fangled issue securities where the proceeds go directly to the issuer.
Prime Rate
Interest rate that banks charge to their most creditworthy consumers. Banks set this rate in accordance to their cost of funds and market forces.
Prior Approval States
States where insurance concerns have to file proposed rate changes with state regulators, and gain approval before they can go into effect.
Private Mortgage Insurance
This is similar to Mortgage Guarantee Insurance.
Private Placement
Securities that are not registered with the Securities and Exchange Commission and are sold unswervingly to investors.
Product Liability
A part of tort law that determines who may sue and who may be sued for damages when a defective product injures somebody.
Product Liability Insurance
Protects manufacturers’ and distributors’ exposure to lawsuits by people who have continued bodily injury or property damage through the use of the commodity.
Professional Liability Insurance
Covers professionals for negligence and errors or omissions that harm their clients.
Proof Of Loss
Documents showing the insurance concern that a loss occurred.
Property/Casualty Insurance
Covers damage to or loss of policyholders’ property and legal liability for damages caused to other populace or their property.
Property/Casualty Insurance Cycle
Industry business cycle with recurring periods of hard and soft market conditions.
Proposition 103
A November 1988 California ballot initiative that known for a statewide auto insurance rate rollback and for charges to be based more on driving records and less on geographical location.
Purchasing Group
An entity that provides insurance to groups of alike businesses with similar exposures to risk.
Pure Endowment
A life insurance contract that pays a periodic income benefit for the life of the proprietor of the annuity. The payment can be monthly, quarterly, semiannually or yearly.
Pure Life Annuity
A type of annuity that ends payments when the annuitant dies. Payments may be fixed or variable.
