Insurance Glossary | Insurance Terms beginning with 'P'

A physician, nurse, or para-med appointed by the medical director of a life insurance company to examine applicants.

A term loosely applied to life insurance policy forms other than
Group and Term, usually Cash Value Life Insurance, such as Whole Life Insurance.

The printed document issued to the policyholder by the company stating the terms of
the insurance contract.

This insurance coverage protects against false arrest, detention or imprisonment, or malicious prosecution; libel, slander, defamation, or violation of right of privacy; and wrongful entry, eviction, or other invasion of right of private occupancy.

Normally there is a pollution exclusion in a liability insurance policy that states that the insurance does not apply to bodily injury or property damage rising out of the discharge, dispersal, release, or escape of smoke, vapor, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants, or pollutants into or on land, the atmosphere, or any watercourse or body of water. However, pesticide or herbicide applicator insurance affords coverage to the named insured in the following situations:

Where such discharge, dispersal, release, or escape is sudden and accidental, or
If the operations of the named insured are being conducted away from premises owned by or rented to the named insured and the bodily injury or property damage occurs away from such premises, and if such operations meet all standards of any statute, ordinance, regulation, or license requirement of any federal, state, or local government having application to such operation.

This insurance coverage provides "special" protection, except for the perils of war, nuclear reaction, and fire. (Fire is covered under the building policy.)

This coverage is for full replacement cost and covers the expense of repairing frames, installing temporary plates, or boarding up openings.

This is an aggregate first party coverage that applies to your expense in extracting "pollutants" from land or water at your location, if the release of the pollutants is caused by or results from a covered loss.

Pays on your behalf all sums you are legally obligated to pay as a result of emission, discharge, release, or escape of any contaminants, irritants, or pollutants into or on land, the atmosphere, or any water course or body of water, provided this results in "environmental damage."
Additionally pays to reimburse your expense for reasonable and necessary cleanup costs incurred in the discharge of a legal obligation validly imposed through governmental action, provided such expense is incurred because of "environmental damage."
Pays for defense of any claim or suit that is the subject of this insurance.
Coverage Response

"Claims made" coverage response (i.e., responds only to claims first made during the policy period and only for incidents that have occurred after the effective date of this coverage).

Pollution"Environmental damage" is defined in the policy as"the injurious presence in or on land, theatmosphere, or any water course or body of waterof solid, liquid, gaseous, or thermalcontaminants, irritants, or pollutants."

The liability for bodily injury or property damage incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufacturered or the liability incurred by a contractor after he has completed a job as a result of improperly performed work. The latter described part of products liability is called Completed Operations.

Liability arising out of the insured's products or business operations conducted away from the insured's premises once those operations have been completed or abandoned. An aggregate limit in an insurance policy stipulates the most it will pay for all covered losses sustained during a specified period of time, usually one year.

Liability -- Pays on your behalf all sums you become legally obligated to pay by reason of any act, error, or omission rising out of services you render or failed to render. Such services include arranging for property maintenance, renting or leasing, construction, alteration, land development, etc.
Defense and Settlement -- Pays for defense of any claim or suit that is the subject of this insurance.
Examples

Mishandling of accounting and financial matters
Mismanagement
Exceeding authority under the contract
Failure to perform under the contract
Failure to obtain certificates of insurance from contractors for Workers' Compensation insurance, resulting in owner being liable for the premiums
Giving incorrect property values, resulting in uninsured losses or excessive premiums
Failure to maintain an adequate amount of insurance
Important Coverage Feature