GLOSSARY OF TERMS

P TERMS

Package Policy: A policy providing several different coverages

combined into one policy. Refers to a policy providing both general

liability insurance and property insurance

Payroll Limitation: A limit on the amount of payroll for certain

classifications used for the development of premium

Peril: Cause of loss such as fire, windstorm, collision, etc.

Personal Auto Policy (PAP): A policy insuring private-passenger autos

owned by individuals

Personal Injury: A General Liability coverage for insurable offenses that

cause harm, other than bodily injury, such as false arrest, detention or

imprisonment, malicious prosecution, wrongful eviction, slander, libel

and invasion of privacy

Personal Injury Protection (PIP): An automobile insurance coverage

mandated by law in some states. The statutes typically require

insurers to provide or offer to provide first-party benefits for medical

expenses, loss of income, funeral expenses and similar expenses

without regard to fault

Personal Property: All tangible property not classified as real property

such as contents

Policy: The printed document given to the insured, outlining the terms

and conditions of the Insurance coverage.

Policy Fee: A one-time charge per policy that does not change with the

size of the premium

Policy Holder: The person who owns a life insurance policy. This is

usually the insured person, but it may also be a relative of the insured,

a partnership or a corporation.

Policy Period: The term or duration of a policy including the effective

and expiration dates

Pollutant: An irritant or contaminant, whether in solid, liquid, or

gaseous form, including smoke, vapor, soot, fumes, acids, alkalis,

chemicals and waste

Preferred Risk: A positive characterisic of someone seeking to be

insured. Usually means a better likely hood for long life, and usually

means a lower premium.

Premises: The location where coverage applies

Premises-Operations: A category of hazard ordinarily insured by a

general liability policy which is composed of those exposures to loss

that fall outside the defined 'products-completed operations hazard,'

including liability for injury or damage arising out of the insured's

premises or out of the insured's business operations while such

operations are in progress

Premium: The agreed upon, payment made to keep an insurance policy

in force, usually a monthly payment.

Premium Flexibility: The policy holder's right to vary the amount of

premium paid each

month.

Primary Beneficiary: In life insurance, the beneficiary designated by

the insured as the first to receive policy benefits.

Primary Policy: The insurance policy that pays first when you have a

loss that's covered by more than one policy.

Pro Rata Cancellation: The cancellation of an insurance policy with the

return premium being the full proportion of premium for the unexpired

term of the policy, without penalty for early cancellation

Product: Items manufactured, sold, handled, distributed or disposed of

by the named insured or others involved with the named insured in the

course of their business. Includes containers, parts and equipment,

product warranties and provision of or failure to provide instructions

and warnings

Product Liability: The liability for bodily injury or property damage a

merchant or manufacturer may incur as a consequence of some defect

in the product sold or manufactured

Products-Completed Operations: General Liability coverage for liability

arising out of the insured's products or business operations conducted

away from the insured's premises once those operations have been

completed

Professional Liability: Coverage designed to protect professionals such

as physicians and real estate brokers, against liability incurred as a

result of errors and omissions in performing professional services

Property Damage: In the general liability policy, a physical injury to

property, resulting in the loss of use

Property Insurance: First-party insurance for real and personal property

against physical loss or damage

Provisions: Details of an insurance policy which explain the benefits,

conditions and other features of the insurance contract.