- In fire insurance and insurance written covering certain buildings
and dwellings, this is the term used to mean both furnished and lived
The existence of another contract covering the same interest and perils.
P.D. - This is property damage, generally referring to damage to property arising out of an activity of the insured, but referring specifically to damage to a third party or other individuals not insured under the policy.
- This term refers to the causes of possible loss; for instance, fire,
PHYSICAL DAMAGE - This term usually denotes damage to the property described in the policy. This also could include property damage caused by an act of the insured, but by definition and by usage, the insurance adjuster refers to physical damage only when describing damage to the insured's property. When describing damage to another's property, he or she refers to it as property damage.
P.I. CLAIMS - This is synonymous with B.I. It is simply another term for injury defined as personal injury, referring to injuries of third parties arising out of the insured's activities.
- One who complains at law by bringing a lawsuit against another.
POLICY FEE - A first year premium charge to offset in whole or part the first year acquisition cost rather than amortize it over several years.
POLICYHOLDER - One who possesses an insurance contract. In most states, this term is used synonymously with "Insured".
POLICY OWNER - The person with the right to exercise the rights and privileges in the policy contract. This person may or may not be the insured.
POLICY YEAR - A year during the life of an insurance contract beginning at a designated date, usually the policy anniversary.
POLICY YEAR EXPERIENCE - Each 12-month period that is a policy is in effect, there is a measure taken of premiums and losses. The losses that occur during this period are counted regardless of when it was paid.
The authority that is given to one person or corporation to act for and
obligate another, to a certain extent. A reciprocal contract of
insurance cannot be completed without this power. In the
reciprocal insurance the subscriber gives the individual the authority
to exchange insurance for him with other subscribers.
PREMISES BURGLARY - This is a burglary that takes place on an insured premises. Premises burglary coverage may be written separately or as part of a package of crime coverages.
PREMIUM - (1) Part of the consideration for the insurance. (2) The periodic payment that is made to keep a policy in force. (3) In annuities, it is the purchase payment.
PREMIUM NOTICE - A notice that is sent from the insurance company to the policyholder stating that a premium is due on a given date.
PRIMA FACIE - "At first face or sign" A plaintiff makes a prima facie case when his evidence is strong enough to make the defendant answer the complaint.
PRIMARY INSURANCE - First in order or prime insurance. Applicable to a loss first and when exhausted, other (excess) insurance, if any, then applies.
PRODUCT LIABILITY - This is liability imposed for damages caused by accident and arising out of the handling or use of goods or products manufactured, sold, handled or distributed by the insured if the accident occurs after possession has been relinquished to another person, such as the purchase of a bottle of soft drink which results in illness to its consumer from foreign substance contained in the soft drink.
PRODUCTS LIABILITY INSURANCE - This insurance provides protection against the claims that come out of the use, handling, or consumption of a product.
PROFESSIONAL LIABILITY INSURANCE - This insurance covers professionals, doctors, lawyers, architects, etc. for loss or expense that results from claims on on account of bodily injuries because of any malpractice, error, or mistake committed by the insured in his profession. Any class of business that the insurance company will not insure in any condition.
PROOF OF LOSS - A formal statement made by the insured to the insurance company regarding a loss. The original purpose was to provide the insurance company with sufficient information so that the company could determine its liability under the policy. This has largely now been outdated and, in effect, a proof of loss amounts to a form for the settlement of first party losses or claims by an insured directly against an insurance company, under the policy.
PROPERTY DAMAGE (LIABILITY) INSURANCE - This is insurance against liability for damage to the property of another that is not in the custody or control of the insured, as distinguished from liability for bodily injury. In most cases, property damage insurance is written in connection with the bodily injury protection, the premiums and limits of insurance being distinct.
PROPERTY INSURANCE - This insurance repays a person with an interest in physical property for its loss or the loss of its income-producing ability.
PROTECTION - (1) A term which is used interchangeably with "coverage" to indicate the insurance provided under the terms of the policy. (2) It is also used to indicate the existence of fire-fighting facilities in a "protected" area.
PROXIMATE CAUSE - The effective cause of loss or damage; an unbroken chain of cause and effect between the event of the peril and damage to the property; for example, fire is the proximate cause of damage done by water used in extinguishing it.
PUBLIC ADJUSTER - This is an insurance adjuster who represents the interest of the insured in his claim against the company, as opposed to the standard adjuster who represents the insurance company and defends against a claim by the insured. In many instances, the claim is adjusted and settled in conference between the staff or independent adjuster and the public adjuster.
PUNITIVE DAMAGES - These are damages allowed for wrongs committed where there has been fraud, bad faith, deliberate violence or oppression, and are punishments to the defendant as well as a warning to other, similar to the punishments given to a criminal defendant.
PURE RISK - A loss or no-loss situation, as opposed to when a loss or gain is possible.