P Flashcards
(28 cards)
Package Policy
two or more distinct policies combined into a single contract.
Peril
the cause of property damage or personal injury, origin of desire for insurance.
Personal Earthquake
earthquake property coverage for personal, family or household purposes.
Personal Flood
separate flood insurance policy sold for personal, family or household purposes.
Personal GAP Insurance
credit insurance that insures the excess of the outstanding indebtedness over the primary property insurance benefits in the event of a total loss to a collateral asset.
Personal Property
single interest or dual interest credit insurance (where collateral is not a motor vehicle, mobile home, or real estate) that covers perils to goods purchased or used as collateral and that concerns a creditor’s interest in the purchased goods or pledged collateral either in whole or in part; or covers perils to goods purchased in connection with an open-end credit transaction.
Pet Insurance Plans
veterinary care plan insurance policy providing care for a pet animal (e.g., dog or cat) of the insured owner in the event of its illness or accident.
Policy
a written contract ratifying the legality of an insurance agreement.
Policy Period
time period during which insurance coverage is in effect.
Policy Reserve
the amount of money allocated specifically for the fulfillment of policy obligations by a life insurance company; reserves are in place to safeguard that the company is able to pay all future claims.
Policyholders Surplus
assets in excess of the liabilities of a company or net income above any monies indebted to legal obligation.
Preferred Risk
insured, or applicant for insurance, who presents likelihood of risk lower than that of the standard applicant.
Premium
Money charged for the insurance coverage reflecting expectation of loss.
Premiums Earned
the portion of premium for which the policy protection or coverage has already been given during the now-expired portion of the policy term.
Premiums Net
is the amount calculated on the basis of the interest and mortality table used to calculate the reporting entity’s statutory policy reserves.
Premiums Written
total premiums generated from all policies (contracts) written by an insurer within a given period of time.
Primary Insurance
coverage that takes precedence when more than one policy covers the same loss.
Prior Approval Law
a state regulatory requirement for pre-approval of all insurance rates and forms.
Producer
an individual who sells, services, or negotiates insurance policies either on behalf of a company or independently.
Professional Errors and Omissions Liability
coverage available to pay for liability arising out of the performance of professional or business related duties, with coverage being tailored to the needs of the specific profession. Examples include abstracters, accountants, insurance adjusters, architects, engineers, insurance agents and brokers, lawyers, real estate agents, stockbrokers.
Property
coverage protecting the insured against loss or damage to real or personal property from a variety of perils, including but not limited to fire, lightening, business interruption, loss of rents, glass breakage, tornado, windstorm, hail, water damage, explosion, riot, civil commotion, rain, or damage from aircraft or vehicles.
Pro-Rata (Proportional) Reinsurance
portion of the losses and premium reinsurer shares with the ceding entity.
Protection and Indemnity (P&I) Insurance
a broad form of marine legal liability insurance coverage.
Provisions
contingencies outlined in an insurance policy.
