P & I Clubs :: Protection and Indemnity Associations. These are associations of ship-owners organized to provide mutual aid for members for liabilities not covered by marine hull policies.

 

Package Policy :: A combination of two or more individual policies or coverages in a single policy e.g. Householders Package Policy, Shopkeepers Policy, Office Package Policy etc.

 

Peril :: In insurance, any event that causes a loss and which may be included or excluded on an insurance policy, for example, an insured peril in a fire policy is fire; an excluded peril is war.

 

Peril of Nature :: In insurance, a class of peril that includes earthquake, flood, hailstones, storm, thunderbolt and subsidence; such perils are usually covered by property insurance.

 

Peril of the sea :: All perils which are unique of transportation and which could not be prevented by reasonable efforts, including sinking of the vessel, standing, heavy weather, lightning, collision with other vessels or submerged objects and damage by sea water when caused by an insured peril.

 

Personal Lines :: Those types of insurance such as auto or home insurance, for individuals or families rather than for business or organizations.

 

Physical Damage :: Damage to or loss of the auto resulting from collision, fire, theft or other perils.

 

Policy :: The legal document issued by an insurance company to a policyholder, which outlines the conditions and terms of the insurance, also called the policy contract or the contract.

 

Policyholder :: A person who pays a premium to an insurance company in exchange for the insurance protection provided by a policy of insurance.

 

Political Risk Insurance :: Coverage for businesses operating abroad against loss due to political upheaval such as war, revolution, or confiscation of property.

 

Pollution Liability :: Exposure to lawsuits for injury or cleanup costs that result from pollution damage.

 

Pool :: An organization of insurers or reinsurers through which particular types of risk are underwritten and premiums. Losses and expenses are shared in agreed upon amounts.

 

Portability :: The right to transfer pension right and credits when a worker changes jobs.

 

Premium  :: The amount of money an insurance company charges for insurance coverage. 

 

Probate :: The court supervised process of validating or establishing a distribution for assets of a deceased including the payment of outstanding obligations.

 

Product Liability :: Legal liability incurred by a manufacturer, merchant or distribution because of injury or damage resulting from the use of its product.

 

Product Liability Insurance :: Coverage designed to provide 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 covered product.

 

Proof of Loss :: Documentary evidence required by an insurer to prove a valid claim exists. It usually consists of a claim for completed by the insured and for health insurance claims by the insured’s attending physician. For medical expense insurance itemized bills must also be included.

 

Proposal :: Form filled in by a person wanting to take out insurance. Inaccuracies or omissions (accidental or deliberate) in a proposal may invalidate any insurance policy issued.

 

Proposer :: Individual or company offering or seeking insurance.

 

Proximate Cause :: In insurance, the immediate effective cause of an insured loss.

 

Prudent Insurer :: Hypothetical insurer who is in possession of all relevant information (material facts) before issuing an insurance policy.

 

Pure Risk :: In insurance, a risk that can result in either a break-even situation, or a loss.