Insurance Glossary

Showing 24 of 46 matching terms

Terms beginning with P

Paid-up additions

Life insurance

Small amounts of fully paid permanent life insurance purchased with dividends or additional payments under an eligible policy.

Also called: PUAs

Paid-up policy

Life insurance

A life policy requiring no further scheduled premiums while retaining coverage under its terms.

Also called: fully paid-up insurance

Palliative care

Health insurance

Specialized care focused on relieving symptoms and improving quality of life for people with serious illness.

Also called: supportive care

Parametric insurance

General insurance

Insurance that pays an agreed amount when an objective trigger, such as wind speed or earthquake magnitude, is met.

Participating policy

Life insurance

A policy eligible to receive dividends from a participating insurer; dividends are not guaranteed.

Also called: par policy

Peril

Home insurance

A cause of loss, such as fire, wind, or theft, that a policy may cover or exclude.

Permissive use

Auto insurance

Policy treatment of someone who drives an insured vehicle with the owner’s permission but is not a regular listed driver.

Per risk reinsurance

General insurance

Reinsurance structured to protect an insurer against loss from an individual policy, risk, or occurrence.

Personal auto policy

Auto insurance

A policy designed to insure a person’s personal vehicle use, subject to its covered autos, drivers, exclusions, and limits.

Also called: PAP

Personal injury protection

Auto insurance

Auto coverage that may pay specified medical expenses and other losses for covered people regardless of fault.

Also called: PIP, no-fault coverage

Personal liability coverage

Home insurance

Home or renters policy coverage that may pay for covered injury or property damage the insured is legally responsible for causing.

Also called: personal liability

Personal property coverage

Home insurance

The part of a home, condo, or renters policy that may cover belongings after a covered loss.

Also called: Coverage C

Personal umbrella policy

General insurance

A policy that may provide additional liability coverage above certain underlying policies, subject to its terms.

Also called: umbrella policy

Policy

General insurance

The contract that describes an insurance agreement, including coverage, conditions, exclusions, and limits.

Also called: insurance policy

Policyholder

General insurance

The person or organization that owns an insurance policy and is responsible for its terms, including premiums.

Policyholders surplus

General insurance

The excess of an insurer’s admitted assets over liabilities, serving as a financial cushion for policyholder obligations.

Policy limit

General insurance

The maximum amount a policy may pay for a covered loss, coverage part, or period.

Policy loan

Life insurance

A loan taken against available life insurance cash value that may accrue interest and reduce benefits if unpaid.

Also called: cash value loan

Policy period

General insurance

The span between a policy’s effective and expiration dates during which coverage may apply.

Also called: policy term

Policy replacement

Life insurance

The purchase of a new life policy or annuity that causes an existing policy or contract to lapse, surrender, or be reduced.

Pollution liability insurance

Business insurance

Coverage for specified pollution cleanup costs and liability claims that standard policies may exclude.

Also called: environmental liability insurance

Pre-existing condition

Health insurance

A health condition a person had before coverage began; how it is treated depends on the type of plan and applicable rules.

Preferred provider organization

Health insurance

A health plan type that offers a provider network and may cover out-of-network care at a higher member cost.

Also called: PPO

Premises liability

Business insurance

Legal responsibility for bodily injury or property damage arising from the ownership, maintenance, or use of premises.