Paramedical Exam to Provisions Definitions
- 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.
Life Insurance
Guaranteed Issue
Life Insurance
