Paramedical Exam to Provisions Definitions

A B C D E F G H I J K L M N O P R S T U V W Y
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Paramedical Exam (Paramed): A medical examination conducted by medical professional (usually non MD) for the purpose of evaluating an individual's health risk. This evaluation is a factor in determining the rate class and resultant premium for the policy.
Partial Disability: A disability that prevents the insured from completing some but not all of his normal duties connected with his occupation.
Partial Loss: Damage or loss of a portion of the insured property.
Participating Policy (par): A life insurance policy whose owner receives dividends based upon the profitability of the insurance company
Per Capita: A term used in the designation of beneficiaries wherein if there is more than one beneficiary and one or more of the beneficiaries should pre-decease the insured, the remaining beneficiaries will share equally in the death benefit.
Per Stirpes: A term used in the designation of beneficiaries wherein if there is more than one beneficiary and one of more of the beneficiaries should pre-decease the insured, the remaining beneficiaries will share equally in the death benefit with one equal share per dead beneficiary to be divided among the heirs of the dead beneficiary.
Permanent Policy (Permanent Life Insurance): A policy that provides coverage for the entire life of the insured.
Persistency: The percentage of insurance policies that stay in force and do not lapse.
Policy: A legal contractual agreement between and insurance company and an insured.
Policy Anniversary: The anniversary of the date that the policy was issued.
Policy Date: The date that the policy was put into effect.
Policy Fee: A fee that is added to the premium of the insurance company to cover the cost of administration of the policy
Policy Not Taken (NTO): A policy is not taken when an applicant decides not to accept a policy.
Policy holder / Policy owner: This is the person who owns the policy.
Power of Attorney: A legal agreement wherein one person has the power and permission to act on behalf of another. This usually applies to legal proceedings and decision making.
Preferred Best Risk: A premium and rating classification that is better than standard risk. This is usually the lowest designated premium classification.
Preferred Risk: A premium classification that is better than standard risk, but not as low a premium as the preferred best rating.
Premium: The amount of money required to keep a policy in force. It is determined by the rate class and the underwriting evaluation of the risk.
Premium Notice: Billing provided to the policyowner to notify them of the premium required to keep the policy in force.
Primary Beneficiary: The person or entity indicated by the policyowner to receive the proceeds of the policy in the event of the death of the insured.
Proof of Loss: Legal documentation provided to the insurance company about any incurred losses and required in order for any proceeds of the policy to be paid.
Provisions: The contents of an insurance contract that details the terms of the policy and the requirements of both the insured and the insurer.