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Benson Kearley IFG helps you understand...

The world of insurance can be quite hard to understand. We’re here to provide you with terms you can understand, give you advice and offer our help—all right at your fingertips.

Insurance Glossary

P

PAPER

A term used to describe any short-term debt instrument.

PARTIAL LOSS

A loss under an insurance policy which does not either (1) completely destroy or render worthless the insured property, or (2) exhaust the insurance applying thereto.

PASSIVE STRATEGY

The investing of funds in a market index portfolio without attempting to find underpriced (value) securities or growth securities. This investment strategy reduces the management costs associated with it, as there is little research performed and fewer brokerage fees.

PENSION PLAN

A formal arrangement through which the employer, and in most cases employee, contributes to a fund to provide the employee with a lifetime of income at retirement.

PERIL

The event that caused a loss covered by the policy and which could imply the intervention of the insurance company.

PERSONAL ARTICLES FLOATER

Provides all risk coverage, subject to reasonable exclusions for valuable items such as furs, jewellery, cameras, silverware, etc. formerly insured under separate contracts. The items are generally listed by description and value. This can be contrasted to the personal effects floater.

PERSONAL EFFECTS FLOATER

An inland Marine policy covering world-wide except in the insured's domicile, personal effects usually carried by a tourist. In two forms, "All Risk" or Broad Form and "Specified Perils" form.

PERSONAL INJURY

Injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person's right to privacy committed other than in the course of advertising, publishing, broadcasting or telecasting. Contrast with Advertising Injury.

PERSONAL LIABILITY

A form of liability insurance for individuals in the event that they become liable to pay money for damage or injury caused to others. This form does not include automobile liability.

PERSONAL PROPERTY

Any property of an insured other than real property. Homeowner policies protect the personal property of family members, and commercial forms are used to protect many types of business personal property of an insured.

PERSONAL PROPERTY FLOATER

A broad policy covering all personal property world-wide, including insured's domicile.

PERSONAL PROPERTY LIMITATIONS

Don't assume everything you own is adequately insured by a standard homeowner's policy. The typical homeowner's policy provides only limited coverage for many expensive items. Extra coverage can be purchased separately.

PHYSICAL DAMAGE

A generic term indicating actual damage to property.

PHYSICAL DAMAGE COVERAGE

Physical damage coverage insures you against damage to your car. The physical damage section of an automobile policy can include both comprehensive coverage - which protects you against theft and vandalism, among other things - and collision coverage.

PHYSICAL HAZARD

The material, structural, or operational features of the risk itself, apart from the morale or moral hazards of the persons owning or managing it.

PILFERAGE

Petty theft, especially theft of articles in less than package lots.

PLUMBING

System of pipes for the conveyance of water or gas in a building. Also, the work performed to install such a system.

POLICY

Contract between the insured and the insurer setting out the terms and conditions of the insurance and specifying the rights and obligations to which each party has agreed.

POLICY EXPIRATION DATE

The date when your current insurance policy expires. This date can be found on your current Declaration (or "DEC") page, insurance identification card, or recent cancellation notice. This date is not to be confused with the date of your next payment or the date when your renewal payment is due.

POLICYHOLDER

Person in whose name an insurance policy is written and who pays the premiums. Not necessarily synonymous with "insured."

POLICY LIMIT

The maximum amount a policy will pay, either overall or under a particular coverage.

POLICY PERIOD (OR TERM)

The period during which the policy contract provides protection, e.g., six months or one or three years.

PORCH, VERANDA

Roofed gallery attached to the exterior of a building and used for sitting out of doors. May be open or closed.

PORTFOLIO

The entire set of stocks, bonds, real estate, and other assets an individual possesses.

POWER OF ATTORNEY

Generally speaking, legal say over the affairs of another person's assets and the ability to execute legal documents on their behalf.

PREFERRED RISK

An insurance classification indicating a risk that is superior to the average risk on which the rate has been calculated and thus eligible for a reduced rate.

PREFERRED STOCK

Stock in a company that usually has no voting rights but that generally provides an income stream through dividends and receives priority of payment before common stock in the event of bankruptcy.

PREMISES

Location and/or building insured.

PREMIUM

The amount of money an insurance company charges for insurance coverage.

PRICE-EARNINGS RATIO

The ratio of a firm's stock price to its earnings per share, which is commonly used as a valuation tool of the stock.

PRIMARY RESIDENCE

The place where you will reside for the majority of your policy term.

PRINCIPLE DRIVER

The person who drives the car most often.

PRINCIPAL OPERATOR

The person who drives the vehicle the most, usually the named insured.

PROFESSIONAL THIRD PARTY LIABILITY INSURANCE

Insurance designed to indemnify the insured for loss incurred through legal liability resulting from actions performed as part of the practice of a profession.

PROHIBITED RISK

Any class of business, which an insurance company will not insure under any condition.

PROOF OF LOSS

A formal statement made by a policyholder to an insurance company regarding a loss. It is intended to give information to the insurer to enable them to determine the extent liability of the financial compensation to be paid for a covered loss.

PROPERTY

A thing owned. Also, the right of ownership.

PROPERTY & CASUALTY (P & C) INSURANCE

Insurance covering property (e.g. home, car). Also called General insurance, Damage insurance, Non-life insurance.

PROPERTY DAMAGE LIABILITY

Pays when an insured person is legally liable for damage to the property of others caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense costs if you are sued.

PROPERTY DAMAGE UNINSURED MOTORIST

Property damage uninsured or underinsured coverage protects you in situations where your vehicle has been wrecked by another driver who doesn't have adequate coverage or no insurance at all, and can't pay for your losses. With this coverage, your own insurance company would pay up to the limit of your policy, to have your car fixed or replaced.

PROPERTY INSURANCE

Property Insurance indemnifies an insured whose property is stolen, damaged, or destroyed by a covered peril. The term property insurance includes direct or indirect property losses covered in several lines of insurance.

PROSPECTUS

A report that mutual fund companies are required by the securities acts to issue to investors and/or people wishing to review the content of a mutual fund before they invest in it. They normally contain past fund performance, asset selection criteria, individual asset weightings within each fund and expense ratios for the funds.

PUBLIC LIABILITY

Legal obligation to pay for damages caused to other individuals or firms.

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