Insurance Definitions P
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- 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. - PERSONAL INJURY PROTECTION COVERAGE (PIP)
Coverage on an auto insurance policy that pays for injuries to the insured and the people in their auto. - PERSONAL LINES
Property/casualty insurance products that are designed for and bought by individuals, including homeowners and automobile policies. - 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. - 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. - 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. - PREMIUM
The dollar amount paid for the policy. This is usually calculated annually or semi-annually. - 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.