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PACKAGE POLICY

PACKAGE POLICY - A single insurance policy that combines several coverages previously sold separately. Examples include homeowners insurance and commercial multiple peril insurance.

PAY-AT-THE-PUMP

PAY-AT-THE-PUMP - A system proposed in the 1990s in which auto insurance premiums would be paid to state governments through a per-gallon surcharge on gasoline.

PENSION BENEFIT GUARANTY CORPORATION

PENSION BENEFIT GUARANTY CORPORATION - 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.

PENSIONS

PENSIONS - 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 )

PERIL

PERIL - 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.

PERSONAL ARTICLES FLOATER

PERSONAL ARTICLES FLOATER - A policy or an addition to a policy used to cover personal valuables, like jewelry or furs.

PERSONAL INJURY PROTECTION COVERAGE / PIP

PERSONAL INJURY PROTECTION COVERAGE / PIP - Portion of an auto insurance policy that covers the treatment of injuries to the driver and passengers of the policyholder‘s car.

PERSONAL LINES

PERSONAL LINES - Property/casualty insurance products that are designed for and bought by individuals, including homeowners and automobile policies. (See Commercial lines )

POINT-OF-SERVICE PLAN

POINT-OF-SERVICE PLAN - Health insurance policy that allows the employee to choose between in-network and out-of-network care each time medical treatment is needed.

POLICY

POLICY - A written contract for insurance between an insurance company and policyholder stating details of coverage.

POLITICAL RISK INSURANCE

POLITICAL RISK INSURANCE - Coverage for businesses operating abroad against loss due to political upheaval such as war, revolution, or confiscation of property.

POLLUTION INSURANCE

POLLUTION INSURANCE - 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 )

POOL

POOL - See Insurance pool

PREFERRED PROVIDER ORGANIZATION

PREFERRED PROVIDER ORGANIZATION - Network of medical providers which charge on a fee-for-service basis, but are paid on a negotiated, discounted fee schedule.

PREMISES

PREMISES - The particular location of the property or a portion of it as designated in an insurance policy.

PREMIUM

PREMIUM - The price of an insurance policy, typically charged annually or semiannually. (See Direct premiums, Earned premium, Unearned premium )

PREMIUM TAX

PREMIUM TAX - A state tax on premiums paid by its residents and businesses and collected by insurers.

PREMIUMS IN FORCE

PREMIUMS IN FORCE - The sum of the face amounts, plus dividend additions, of life insurance policies outstanding at a given time.

PREMIUMS WRITTEN

PREMIUMS WRITTEN - 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.

PRIMARY COMPANY

PRIMARY COMPANY - In a reinsurance transaction, the insurance company that is reinsured.

PRIMARY MARKET

PRIMARY MARKET - Market for new issue securities where the proceeds go directly to the issuer.

PRIME RATE

PRIME RATE - Interest rate that banks charge to their most creditworthy customers. Banks set this rate according to their cost of funds and market forces.

PRIOR APPROVAL STATES

PRIOR APPROVAL STATES - States where insurance companies must file proposed rate changes with state regulators, and gain approval before they can go into effect.

PRIVATE MORTGAGE INSURANCE

PRIVATE MORTGAGE INSURANCE - See Mortgage guarantee insurance

PRIVATE PLACEMENT

PRIVATE PLACEMENT - Securities that are not registered with the Securities and Exchange Commission and are sold directly to investors.

PRODUCT LIABILITY

PRODUCT LIABILITY - 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.

PRODUCT LIABILITY INSURANCE

PRODUCT LIABILITY INSURANCE - Protects manufacturers‘ and distributors‘ exposure to lawsuits by people who have sustained bodily injury or property damage through the use of the product.

PROFESSIONAL LIABILITY INSURANCE

PROFESSIONAL LIABILITY INSURANCE - Covers professionals for negligence and errors or omissions that injure their clients.

PROOF OF LOSS

PROOF OF LOSS - Documents showing the insurance company that a loss occurred.

PROPERTY/CASUALTY INSURANCE

PROPERTY/CASUALTY INSURANCE - 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.

PROPERTY/CASUALTY INSURANCE CYCLE

PROPERTY/CASUALTY INSURANCE CYCLE - 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.

PROPOSITION 103

PROPOSITION 103 - 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.

PURCHASING GROUP

PURCHASING GROUP - An entity that offers insurance to groups of similar businesses with similar exposures to risk.

PURE LIFE ANNUITY

PURE LIFE ANNUITY - A form of annuity that ends payments when the annuitant dies. Payments may be fixed or variable.

Patient Centered Medical Home**

A term defining a health care setting where patients receive comprehensive primary care services, have an ongoing relationship with a primary care provider who directs and coordinates their care; and have enhanced access to non-emergent care.

Patient Protection and Affordable Care Act (PPACA)**

Also referred to as the "health reform law," this Act begins the implementation of a staged set of rules with an initial effective date of March 23, 2010. The law is intended to increase access to health care for more Americans, and includes many changes that impact the commercial health insurance market, Medicare and Medicaid.

Pay for Performance**

A payment system where health care providers receive incentives for meeting or exceeding quality and cost benchmarks. Some systems also penalize providers who do not meet established benchmarks. The goal of pay for performance programs is to improve the quality of care over time.

Pre-existing Condition**

An illness or medical condition for which a person is diagnosed or treated within a specified period of time prior to becoming insured in a new plan. The heath reform law prohibits the denial of coverage due to a pre-existing condition for plan and policy years beginning after September 23, 2010 for children under 19, and for all others beginning in 2014.

Preferred Provider Organization (PPO)**

A type of managed care organization that provides health care coverage through a network of providers. Plan members typically pay higher costs when they seek care from out-of-network providers.

Premium**

The amount paid, often on a monthly basis, for health insurance. The cost of the premium may be shared between employers or government purchasers, and individuals.

Premium Subsidies**

A fixed amount of money, or a designated percentage of the premium cost, that is provided to help people purchase health insurance. The health reform law provides premium subsidies to individuals with incomes between 133% and 400% of the federal poverty level who purchase policies through the health insurance Exchanges, beginning in 2014.

Preventive Care Services**

Health care that emphasizes the early detection and treatment of disease. The health reform law requires certain health plans (excludes Grandfathered plans) to provide coverage without member cost-sharing for certain preventive services.

Primary Care Provider**

A provider, usually a physician, specializing in internal medicine, family practice, or pediatrics, who is responsible for providing primary care and coordinating other necessary health care services for patients.