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P Package Policy
Any insurance policy which covers two or more lines or types of insurance in the same policy.
Pair and Set Clause
Establishes that loss or damage to one of a pair or set of individual items does not represent the loss of the pair or set.
Partial Loss
A loss covered by an insurance policy where the property or the premises are not completely destroyed or rendered completely worthless.
Peril
The event that caused a loss covered by the policy, e.g., fire windstorm.
Perjury
Giving false evidence or information while under oath.
Personal Lines
Insurance for individuals and families, such as private passenger auto insurance and homeowners policies.
Personal Property
Legally, any property of an insured other than real property. More often used to refer to the personal property of family members insured under a Homeowner's policy.
Policy Conditions
Provisions which state the rights and duties of the insured or insurer.
Policy Limit
The maximum that the insurance company is obligated to pay in actual claims under an insurance policy. Certain additional costs may also need to be paid.
Policy Provisions
Statements contained in an insurance policy which explain the benefits, conditions and other features of the insurance contract.
Policy Year
Period between anniversary dates.
Policyholder
Individual or other entity who owns an insurance policy. The Insured.
Power of Attorney
Authority given one person or organization to act for and obligate another to the extent of the instrument creating the power.
Premises
Building including the land immediately surrounding it and belonging to it.
Premium
The price of insurance protection for a specified risk for a specified period of time.
Principle of Indemnity
The concept that an insured will be reimbursed for his loss (subject only to the policy limit and terms). If there is no loss there can be no indemnity.
Private Passenger Car
Four-wheeled motor vehicles of the private passenger, station wagon or van type, designed for use on public roads and subject to motor vehicle registration.
Pro Rata Cancellation
Cancellation of an insurance policy or bond with the return premium credit being the full proportion of premium for the unexpired term of the policy.
Professional Liability Insurance
Protects professionals against liability for damages and cost of defense based upon his/her alleged or real professional errors and omissions or mistakes, e.g., architects, engineers, medical malpractice, attorneys.
Proof of Loss
A formal statement made by a policy owner to an insurer regarding a loss. It is intended to give information to the insurer to enable it to determine the extent of its liability.
Property Insurance
Covers an insured's property against damage, destruction or loss by a covered peril.
Protection
Used interchangeably with "coverage" to denote insurance provided under the terms of a policy.
Proximate Cause
Cause of loss or damage. Unbroken chain of cause and effect between the occurrence of an insured peril and damage to property.
Punitive Damages
Damages in excess of those required to compensate the plaintiff for the wrong done, which are imposed in order to punish the defendant because of the particularly wanton or willful character of his wrongdoing.
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