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PACKAGE POLICY.
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PAY-AT-THE-PUMP.
2
PENSION BENEFIT GUARANTY CORPORATION.
2
PENSIONS.
2
PERIL.
2
PERSONAL ARTICLES FLOATER.
2
PERSONAL INJURY PROTECTION COVERAGE / PIP.
2
PERSONAL LINES.
2
POINT-OF-SERVICE PLAN.
3
POLICY.
3
POLICYHOLDERS' SURPLUS.
3
POLITICAL RISK INSURANCE.
3
POLLUTION INSURANCE.
3
PREFERRED PROVIDER ORGANIZATION.
3
PREMISES.
3
PREMIUM.
3
PREMIUM TAX.
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PREMIUMS IN FORCE.
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PREMIUMS WRITTEN.
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PRIMARY COMPANY.
4
PRIMARY MARKET.
4
PRIME RATE.
4
PRIOR APPROVAL STATES.
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PRIVATE MORTGAGE INSURANCE.
4
PRIVATE PLACEMENT.
4
PRODUCT LIABILITY.
5
PRODUCT LIABILITY INSURANCE.
5
PROFESSIONAL LIABILITY INSURANCE.
5
PROOF OF LOSS.
5
PROPERTY/CASUALTY INSURANCE.
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PROPERTY/CASUALTY INSURANCE CYCLE.
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PROPOSITION 103.
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PURCHASING GROUP.
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PURE LIFE ANNUITY.
6
A single
insurance policy that combines several coverages previously sold
separately. Examples include homeowners insurance and commercial
multiple peril insurance.
A system proposed
in the 1990s in which auto insurance premiums would be paid to state
governments through a per-gallon surcharge on gasoline.
An independent
federal government agency that administers the Pension Plan
Termination Insurance program to ensure that vested benefits of
employees whose pension plans are being terminated are paid when
they come due. Only defined benefit plans are covered. Benefits are
paid up to certain limits.
Programs to
provide employees with retirement income after they meet minimum age
and service requirements. Life insurers hold some of these funds.
Since the 1970s responsibility for funding retirement has
increasingly shifted from employers (defined benefit plans that
promise workers a specific retirement income) to employees (defined
contribution plans financed by employees that may or may not be
matched by employer contributions). (See Defined benefit plan;
Defined contribution plan)
A specific risk
or cause of loss covered by an insurance policy, such as a fire,
windstorm, flood, or theft. A named-peril policy covers the
policyholder only for the risks named in the policy in contrast to
an all-risk policy, which covers all causes of loss except those
specifically excluded.
A policy or an
addition to a policy used to cover personal valuables, like jewelry
or furs.
Portion of an
auto insurance policy that covers the treatment of injuries to the
driver and passengers of the policyholder’s car.
Property/casualty
insurance products that are designed for and bought by individuals,
including homeowners and automobile policies. (See Commercial lines)
Health insurance
policy that allows the employee to choose between in-network and
out-of-network care each time medical treatment is needed.
A written
contract for insurance between an insurance company and policyholder
stating details of coverage.
The amount of
money remaining after an insurer’s liabilities are subtracted from
its assets. It acts as a financial cushion above and beyond
reserves, protecting policyholders against an unexpected or
catastrophic situation.
Coverage for
businesses operating abroad against loss due to political upheaval
such as war, revolution, or confiscation of property.
Policies that
cover property loss and liability arising from pollution-related
damages, for sites that have been inspected and found
uncontaminated. It is usually written on a claims-made basis so
policies pay only claims presented during the term of the policy or
within a specified time frame after the policy expires. (See
Claims-made policy)
Network of
medical providers which charge on a fee-for-service basis, but are
paid on a negotiated, discounted fee schedule.
The particular
location of the property or a portion of it as designated in an
insurance policy.
The price of an
insurance policy, typically charged annually or semiannually. (See
Direct premiums; Earned premium; Unearned premium)
A state tax on
premiums paid by its residents and businesses and collected by
insurers.
The sum of the
face amounts, plus dividend additions, of life insurance policies
outstanding at a given time.
The total
premiums on all policies written by an insurer during a specified
period of time, regardless of what portions have been earned. Net
premiums written are premiums written after reinsurance
transactions.
In a reinsurance
transaction, the insurance company that is reinsured.
Market for new
issue securities where the proceeds go directly to the issuer.
Interest rate
that banks charge to their most creditworthy customers. Banks set
this rate according to their cost of funds and market forces.
States where
insurance companies must file proposed rate changes with state
regulators, and gain approval before they can go into effect.
See Mortgage
guarantee insurance
Securities that
are not registered with the Securities and Exchange Commission and
are sold directly to investors.
A section of tort
law that determines who may sue and who may be sued for damages when
a defective product injures someone. No uniform federal laws guide
manufacturer’s liability, but under strict liability, the injured
party can hold the manufacturer responsible for damages without the
need to prove negligence or fault.
Protects
manufacturers’ and distributors’ exposure to lawsuits by people who
have sustained bodily injury or property damage through the use of
the product.
Covers
professionals for negligence and errors or omissions that injure
their clients.
Documents showing
the insurance company that a loss occurred.
Covers damage to
or loss of policyholders’ property and legal liability for damages
caused to other people or their property. Property/casualty
insurance, which includes auto, homeowners and commercial insurance,
is one segment of the insurance industry. The other sector is
life/health. Outside the United States, property/casualty insurance
is referred to as nonlife or general insurance.
Industry business
cycle with recurrent periods of hard and soft market conditions. In
the 1950s and 1960s, cycles were regular with three year periods
each of hard and soft market conditions in almost all lines of
property/casualty insurance. Since then they have been less regular
and less frequent.
A November 1988
California ballot initiative that called for a statewide auto
insurance rate rollback and for rates to be based more on driving
records and less on geographical location. The initiative changed
many aspects of the state’s insurance system and was the subject of
lawsuits for more than a decade.
An entity that
offers insurance to groups of similar businesses with similar
exposures to risk.
A form of annuity
that ends payments when the annuitant dies. Payments may be fixed or
variable.
Glossary of Insurance Terms
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