Glossary

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Paid-Up

Describes life insurance on which all premiums have been paid but that has not yet matured by death or endowment.

Plaintiff

The party who brings a civil action, complains or sues and is so named on the record.

Portability

A provision in an insurance contract that allows the insured to retain benefits upon change of job.

Pre-Certification

The process of obtaining pre-approval for a medical treatment.

Pre-Existing Condition

A condition of health or physical condition that existed before a health policy was issued. Generally, for an insurer to deem a condition pre-existing, the insured must have seen a doctor and been diagnosed for the condition prior to the policy taking effect.

Pre-Paid Hospital Service Plan

The common name for a Health Maintenance Organization (HMO) plan. It provides comprehensive health care for members who pay a flat fee for services, including outpatient or hospital treatment.

Preferred Risk

An insurance classification indicating a risk that is superior to the average risk on which a given rate has been calculated. Such risks are usually eligible for a reduced rate.

Premium

The periodic amount of money paid to keep a policy in force.

Primary Care

Basic or general healthcare often administered by a family physician. Depending on the situation, patients also may receive primary care from a nurse, a paramedic or other healthcare provider. Managed care systems try to resolve as many health problems as possible at this level.

Producer

Term commonly applied to an agent, solicitor or other person who sells insurance, producing business for an insurance company and generating a commission for himself.

Proof of Loss

A formal statement made by the insured to the insurance company regarding a loss. The purpose of the proof of loss is to place before the company sufficient information concerning the loss to enable it to determine its liability under the policy or bond.

Punitive Damages

A monetary award to deter or punish a company for its fraudulent, oppressive or malicious behavior.
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