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P & I Insurance
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Protection and indemnity insurance for shipowners, contractors, and charterers against liabilities arising out of the operation of the vessel for loss of life to any person, illness or injury to passengers and crew, damage to cargo while loading, carrying or unloading cargo, damage to piers and docks, and removal of wreckage as required by law.
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Pair-And-Set Clause
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An inland marine policy provision which requires the insurer, at the insured's option, to restore or pay for the entire pair or set of jewelry or fine arts when only a part has been lost, destroyed or damaged.
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Partial Loss
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One involving less than all of the values insured or calling on the policy to pay less than its maximum amounts.
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Patent Insurance
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1)Insurance coverage for losses the insured may suffer as a result of another party's infringing upon the insured's patent rights.
2)Insurance coverage for allegations against the insured of infringements upon the rights of a patent holder.
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Payroll Audit
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An examination and verification of an insured's records for the amount of payroll for classes of employees which is used in determining the premium for certain lines of insurance, such as workers compensation. The company sends out auditors to determine the accuracy of the figures provided by the insured.
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Peak Season Endorsement
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A property endorsement that allows an insured to purchase additional property damage insurance for specified cyclical periods occurring on a regular basis. The insured purchases an underlying limit that remains constant throughout the entire year. Additional limits are purchased to increase the underlying limits for specified periods of time. Both the amounts and the dates of the increase are indicated in the endorsement. This type of endorsement provides protection for risks that are seasonal or have significantly higher inventories at set times each year, such as the holidays.
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Performance Bond
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In general terms, surety bond guaranteeing the performance of a contract, usually associated with construction work, but possible for almost any kind of contract.
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Peril
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The cause of loss; for example, fire, wind, vandalism, or accident.
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Perils of The Sea
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Causes of loss unique to the operation of ships and their cargoes, such as sinking, stranding, heavy weather, etc., but not fire, lightening or theft.
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Personal Injury Protection (PIP)
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Also known as a no-fault insurance, PIP provides insurance for medical costs, loss of earnings, additional living expenses, and funeral costs for occupants of the insured automobile and pedestrians, other than those insured under other policies.
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Personal Effects Floater
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An inland marine policy which insures articles, usually accompanying travelers, against "all-risks" while away from home.
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Personal Injury
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Injury, other than bodily injury, resulting from false arrest, false detention, false imprisonment, malicious prosecution, wrongful eviction, wrongful entry, or the invasion of privacy of a premises. It also includes injury caused by oral or written material that slanders a person, goods, products, services, or which violates the right of privacy.
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Personal Property
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Property other than real property; chattels.
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Personal Property of Others
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Contents, business personal property, and any other property excluding real property, that is not owned by the insured.
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Physical Damage
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1)As used in property or liability insurance, physical injury to tangible property.
2)As used in automobile insurance, actual damage or loss of the vehicle itself caused by collision, overturn, fire, theft, vandalism, or malicious mischief.
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Physical Hazard
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Danger of loss or liability arising from the condition, occupancy or use of property, as opposed to such danger arising from the character of the policyholder.
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Pilferage
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Theft in small quantities, for example,not limited to the taking of a whole package or all of the property insured.
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Piracy
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Robbery on the high seas; typically, the seizure of a vessel and cargo.
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Pleasure Use
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A rating classification term used in auto insurance that indicates the vehicle is not used for business and does not have commercial exposures, other than to drive back and forth from work.
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Policy
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The formal written contract of insurance.
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Policy Fee
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A charge made by an agent on small premium policies, in addition to the premium set forth in the policy, which is kept by the agent. The practice is made illegal under the insurance laws of most states.
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Policy Loan
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A life insurance policy nonforfeiture benefit, whereby the insured may borrow from or take a loan from the insurer based on the cash surrender value of the policy.
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Policy Reserve
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The percent of premium that an insurer must set aside in a reserve to pay claims and fulfill the obligations of insurance contracts. On an individual policy basis, each policy has its own pro rata share of the total accumulated policy reserve covering the insured's entire book of business.
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Policy Year
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The year commencing with the effective date of a policy or with the renewal date of that policy, to be distinguished from the calendar year, which always starts from January 1. A term of particular importance in the collection of loss statistics.
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Policyholder Surplus
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As reported on a statutory basis, the sum of all unassigned surplus of a mutual insurer, or for a stock insurer, the sum of all unassigned surplus and capital.
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Port Risk Insurance
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An ocean marine insurance designed to protect a vessel that is portside for a lenghty period of time. Coverage terminates as soon as the vessel leaves port.
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Power Interruption Insurance
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Property and time element endorsements designed to cover the insured for losses that result from the interruption of services by an insured cause of loss. The current endorsements allow the insured to select coverage for off-premises services, whether supplied by a private or public utility. Protection may be purchased for the following options: water suppliers, communication suppliers, or power supplies.
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Power of Attorney
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A document which authorizes a person to act for another within the limitations it contains. A subscriber to an interinsurance exchange executes such a document in favor of the person who operates the exchange.
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Premises
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The building or section of a building, insured or containing the insured property. Depending on policy conditions,it may also include an adjacent area.
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Premium
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The amount of money an insurance company charges to provide coverage.
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Premium Adjustment Provision
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Policies for which a deposit or estimated premium is charged at inception but recalculated at expiration, based on the acutual exposure covered during the policy period.
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Pressure Vessel
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Something designed to contain gas or vapor, such as steam, under pressure. A steam boiler is an excellent example.
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Presumptive Disability
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When an insurer is able to presume that a disability is permanent or for the life of the insured, based upon the type of injury experienced, such as loss of sight or limb.
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Primary Beneficiary
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In a life insurance policy, the individual named to be first to receive the policy benefits and proceeds. If any others should be listed, they are considered contingent or secondary and will collect only if the primary is deceased.
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Primary Insurance
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The insurance policy providing the first layer of coverage that will respond first to any loss exceeding the deductible.
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Pro Rata Clause
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A provision in a property policy which states that the insurance which has been written "blanket," or as one amount covering several items, shall be limited on each item to the proportionate amount which the value of the particular item bears to the total value of all insured items.
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Probable Maximum Loss (PML)
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The anticipated maximum property fire loss that could result, given the normal functioning of protective features (firewalls, sprinklers, and a responsive fire department, among others), as opposed to maximum foreseeable loss which is a similar valuation, but on a worst-case basis with respect to the functioning of the protective features. Underwriting decisions would typically be influenced by PML evaluations, and the amount of reinsurance ceded on a risk would normally be predicated on the PML valuation.
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Product Recall Insurance
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Pays the expense associated with government dictated recall of a product suspected of being defective and dangerous to consumers. Pharmaceutical, automobile and aircraft manufacturers are types of risks that often are affected. This expense is not covered by the standard general liability policy.
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Property Insurance
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"First-party" Insurance of real and personal property against physical loss or damage, not to be confused with property damage liability insurance.
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Protective Safeguards Clause
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In property insurance, a clause or provision that clarifies that coverage was granted or a premium credit given based on the existance of, continual maintenance of, and operation of a specified protective device by the insured. The insurer has the right in some jurisdictions, to void the coverage should a loss occur as a direct result of the lack of maintenance or operation of the specified device. Common examples are sprinkler systems and fire or theft alarms.
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Proximate Cause
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That which brings about a result without the intervention of any other force. Important in insurance since it establishes which policy(ies) will pay for a loss, i.e., the one(s) insuring the peril which was the proximate cause of the loss.
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Proximate Cause
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That which brings about a result without the intervention of any other force. Important in insurance since it establishes which policy(ies) will pay for a loss, i.e., the one(s) insuring the peril which was the proximate cause of the loss.
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Punitive Damages
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Damages awarded separately and in addition to compensatory damages, usually on account of malicious or wanton misconduct, to serve as a punishment for the wrongdoer and, possibly, as a deterrent to others. Sometimes referred to as "exemplary damages" when intended to "make an example" of the wrongdoer.
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