P

Question 1

Package Policy

Answer 1

two or more distinct policies combined into a single contract.

Question 2

Peril

Answer 2

the cause of property damage or personal injury, origin of desire for insurance.

Question 3

Personal Earthquake

Answer 3

earthquake property coverage for personal, family or household purposes.

Question 4

Personal Flood

Answer 4

separate flood insurance policy sold for personal, family or household purposes.

Question 5

Personal GAP Insurance

Answer 5

credit insurance that insures the excess of the outstanding indebtedness over the primary property insurance benefits in the event of a total loss to a collateral asset.

Question 6

Personal Property

Answer 6

single interest or dual interest credit insurance (where collateral is not a motor vehicle, mobile home, or real estate) that covers perils to goods purchased or used as collateral and that concerns a creditor’s interest in the purchased goods or pledged collateral either in whole or in part; or covers perils to goods purchased in connection with an open-end credit transaction.

Question 7

Pet Insurance Plans

Answer 7

veterinary care plan insurance policy providing care for a pet animal (e.g., dog or cat) of the insured owner in the event of its illness or accident.

Question 8

Policy

Answer 8

a written contract ratifying the legality of an insurance agreement.

Question 9

Policy Period

Answer 9

time period during which insurance coverage is in effect.

Question 10

Policy Reserve

Answer 10

the amount of money allocated specifically for the fulfillment of policy obligations by a life insurance company; reserves are in place to safeguard that the company is able to pay all future claims.

Question 11

Policyholders Surplus

Answer 11

assets in excess of the liabilities of a company or net income above any monies indebted to legal obligation.

Question 12

Preferred Risk

Answer 12

insured, or applicant for insurance, who presents likelihood of risk lower than that of the standard applicant.

Question 13

Premium

Answer 13

Money charged for the insurance coverage reflecting expectation of loss.

Question 14

Premiums Earned

Answer 14

the portion of premium for which the policy protection or coverage has already been given during the now-expired portion of the policy term.

Question 15

Premiums Net

Answer 15

is the amount calculated on the basis of the interest and mortality table used to calculate the reporting entity’s statutory policy reserves.

Question 16

Premiums Written

Answer 16

total premiums generated from all policies (contracts) written by an insurer within a given period of time.

Question 17

Primary Insurance

Answer 17

coverage that takes precedence when more than one policy covers the same loss.

Question 18

Prior Approval Law

Answer 18

a state regulatory requirement for pre-approval of all insurance rates and forms.

Question 19

Producer

Answer 19

an individual who sells, services, or negotiates insurance policies either on behalf of a company or independently.

Question 20

Professional Errors and Omissions Liability

Answer 20

coverage available to pay for liability arising out of the performance of professional or business related duties, with coverage being tailored to the needs of the specific profession. Examples include abstracters, accountants, insurance adjusters, architects, engineers, insurance agents and brokers, lawyers, real estate agents, stockbrokers.

Question 21

Property

Answer 21

coverage protecting the insured against loss or damage to real or personal property from a variety of perils, including but not limited to fire, lightening, business interruption, loss of rents, glass breakage, tornado, windstorm, hail, water damage, explosion, riot, civil commotion, rain, or damage from aircraft or vehicles.

Question 22

Pro-Rata (Proportional) Reinsurance

Answer 22

portion of the losses and premium reinsurer shares with the ceding entity.

Question 23

Protection and Indemnity (P&I) Insurance

Answer 23

a broad form of marine legal liability insurance coverage.

Question 24

Provisions

Answer 24

contingencies outlined in an insurance policy.

Question 25

Proximate Cause

Answer 25

event covered under insured’s policy agreement.

Question 26

Public Adjuster

Answer 26

independent claims adjuster representing policyholders instead of insurance companies.

Question 27

Pure Premium

Answer 27

that portion of the premium equal to expected losses void of insurance company expenses, premium taxes, contingencies, or profit margin.

Question 28

Pure Risk

Answer 28

circumstance including possibility of loss or no loss but no possibility of gain.