Insurance Terms: P

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Insurance Terms-L
  • Package Policy are single insurance policies combining several coverage’s which may ordinarily or often be sold separately. Some companies package homeowner, auto and personal liability coverage any issue one package policy.
  • Partial Loss is an insured loss involving less than the full value insured. A claim where less than the maximum amount of insurance coverage is needed.
  • Performance Bond In general performance bonds are surety bonds that guarantee the performance of a contract. Performance bonds are common with construction work, but possible for nearly any contract.
  • Peril is the specific risk or cause of loss covered by an insurance policy. Fire, windstorm, flood, or theft are each perils. A named-peril policy will cover only for the risks named on the policy. An all-risk policy covers all perils of loss except the ones that are specifically excluded.
  • Personal Injury Protection Coverage (PIP) is the part of an auto insurance policy that will cover medical treatment for any injuries to the driver or passengers in the policyholder’s vehicle.
  • Personal Lines Insurance is property and casualty types of insurance products. These lines of insurance are usually designed for individuals and include homeowners, personal auto, and liability policies.
  • Personal Property usually defined property other than real property such as the structure of a house. Personally property are those things put inside of the house.
  • Pet Insurance is life and health insurance policies for animals including pets, and some livestock.
  • Policy: is the written contract for insurance made between an insurance company and a policyholder. The policy is the written agreement spelling out all of the details of the insurance coverage.
  • Policyholder: is the person purchasing an insurance policy and the name of the person the policy is issued to.
  • Preferred Auto is a line of Auto insurance coverage offered to drivers with clean driving records.
  • Preferred Provider Organization (PPO) are networks of medical providers agreeing to charge on a fee-for-service basis, and willing to negotiate for payment on a discounted fee schedule.
  • Premises: is the exact location of the property designated in an insurance policy.
  • Premium is the cost of insurance required for the insurance company to agree to issue a policy on the risk. Most premiums are determined annually or every six-months.
  • Professional Liability Insurance is insurance coverage for professionals protection them from negligence and errors or omissions that may injure a customer or client.
  • Proof of Loss is the written documents showing an insurance company a loss occurred.
  • Property and Casualty Insurance are lines of insurance protecting policyholders from the loss or damage of property and legal liability for damages caused to other people or their property.

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Glossary of Insurance Terms:

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