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Reference guide

Insurance Glossary

Plain-language definitions of common insurance terms across policies, coverage, and claims. Check your policy or plan documents for the terms that apply to you.

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Showing 22 of 46 matching terms

Terms beginning with P

Premium

General insurance
The amount paid to keep an insurance policy or plan in force.
How insurance premiums are calculated

Premium finance company

Auto insurance
A third party that finances insurance premiums and may have cancellation rights under the finance agreement and state law.

Primary and noncontributory

Business insurance
Endorsement wording that may require a policy to respond first without seeking contribution from another party’s insurance.
Also called: primary noncontributory wording

Primary care physician

Health insurance
A doctor who provides or coordinates routine health care and may manage referrals under some plans.
Also called: PCP

Primary insurance

General insurance
Coverage intended to respond before applicable excess or secondary insurance for the same loss.
Also called: primary coverage

Primary use

Auto insurance
The main way an insured vehicle is used, such as commuting, pleasure, or business, which may affect insurance rating and eligibility.
Also called: vehicle use

Prior authorization

Health insurance
A health plan requirement to approve certain care, services, or prescriptions before they are provided or covered.
Also called: preauthorization, precertification

Product liability insurance

Business insurance
Coverage for certain claims alleging that a product caused bodily injury or property damage.

Products-completed operations aggregate

Business insurance
The maximum a liability policy will pay for covered products and completed operations claims during the policy period.
Also called: products aggregate

Products liability insurance

Business insurance
Liability coverage for covered injury or damage caused by products the insured makes, sells, distributes, or repairs.

Professional liability insurance

Business insurance
Coverage for certain claims alleging errors, negligence, or failure to provide professional services.
Also called: professional indemnity insurance

Professional liability retroactive date

Business insurance
The date after which professional acts must occur to qualify for coverage under a claims-made professional liability policy.

Professional services exclusion

Business insurance
An exclusion that may remove coverage for claims arising from specialized professional services.

Proof of loss

Claims
A statement or documentation an insurer may request to support a claim and describe the loss.

Property damage liability

Auto insurance
Auto liability coverage that may pay for damage to another person’s property when the insured driver is legally responsible.
Also called: PD liability

Property of others coverage

Business insurance
Coverage for eligible property belonging to others while it is in the insured’s care, custody, or control.

Pro rata cancellation

General insurance
Policy cancellation in which the unused premium is generally calculated in proportion to the remaining coverage period.
Also called: pro rata refund

Protection gap

General insurance
The difference between total economic losses from an event and the portion covered by insurance.

Protective safeguards endorsement

Home insurance
An endorsement requiring specified protective devices or procedures, such as alarms or sprinklers, to remain in service for coverage to apply.
Also called: protective safeguards provision

Provider directory

Health insurance
A health plan’s list of doctors, facilities, and other providers in its network.
Also called: network directory

Public adjuster

Claims
A licensed professional who may represent a policyholder in documenting and negotiating a property insurance claim.

Public adjuster fee

Claims
The compensation a public adjuster charges a policyholder for assisting with a first-party property claim.