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Insurance Definitions P

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  1. PERIL
    A specific risk or cause of loss covered by an insurance policy. Types of perils include 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.
  2. PERSONAL INJURY PROTECTION COVERAGE (PIP)
    Coverage on an auto insurance policy that pays for injuries to the insured and the people in their auto.
  3. PERSONAL LINES
    Property/casualty insurance products that are designed for and bought by individuals, including homeowners and automobile policies.
  4. POINT-OF-SERVICE PLAN
    A health insurance policy that permits the insured to use out of network doctor's, but encourages them to use in network doctors. The POS plan may have an HMO component and a PPO component.
  5. POLICY
    The written contract issued by the insurance company to the policy owner. This is the contract between the insurance company and the policy owner.
  6. PREFERRED PROVIDER ORGANIZATION
    Plan through which a sponsoring group negotiates price discounts with providers in exchange for patients. The medical professionals are usually paid on a negotiated, discount fee schedule. The sponsor may be an insurer, employer, or third-party administrator.
  7. PREMIUM
    The dollar amount paid for the policy. This is usually calculated annually or semi-annually.
  8. PROPERTY/CASUALTY INSURANCE
    Property/casualty insurance, which includes auto, homeowners and commercial insurance, is one segment of the insurance industry. The other sector is life/health.