Passive Restraint System -
A
passenger safety system incorporated into the vehicle. An
example would be air bags.
Payment Plans -
Your
auto insurance premium can be paid using one of our
installment payment plans; you make several smaller payments
but incur a service fee.
Peril -
A
danger or hazard that can cause a loss, for example, a car
collision with an object, or a fire.
Personal Injury Protection -
Pays medical expenses (and in some cases lost wages) of the
driver and passengers in your car.
Personal Property -
Property
that is not land or connected to land (real estate), such as
furniture or jewelry.
Physical Damage -
The
four coverages protecting the policyholder's vehicle:
Comprehensive; Collision; ERS; and FTCA.
Policy -
A
contract between you and the insurance company.
Policy Change -
Any
change made to your insurance policy during the period that
the policy is in force.
Policyholder -
The
person who took out the insurance policy and is named in the
policy declarations.
Policyholder Service Center -
Refers to geico.com's online system for managing your car
insurance policy online, also known as mypolicy.geico.com
Premium -
The
price of the insurance policy that the insured pays in
exchange for insurance coverage.
Proof of Loss -
A
statement made by the insured regarding the extent of the
claim, in accordance with the conditions of the policy.
Property Damage Liability Coverage
-
Pays when you are legally liable for
damage to the property of others caused by your auto. This
coverage pays for property damage up to the dollar amount you
selected plus the cost of any legal expenses.
Proximate Cause -
That
which in a natural and continuous sequence, unbroken by any
intervening cause, produces the injury and without which the
accident would not have occurred.
PACKAGE POLICY - A single insurance policy that
combines several coverages previously sold separately.
Examples include homeowners insurance and commercial multiple
peril insurance.
PAY-AT-THE-PUMP
- A system proposed in the 1990s in which auto
insurance premiums would be paid to state governments through
a per-gallon surcharge on gasoline.
PENSION BENEFIT GUARANTY
CORPORATION - An independent federal government
agency that administers the Pension Plan Termination Insurance
program to ensure that vested benefits of employees whose
pension plans are being terminated are paid when they come
due. Only defined benefit plans are covered. Benefits are paid
up to certain limits.
PENSIONS
- Programs to provide employees with retirement
income after they meet minimum age and service requirements.
Life insurers hold some of these funds. Since the 1970s
responsibility for funding retirement has increasingly shifted
from employers (defined benefit plans that promise workers a
specific retirement income) to employees (defined contribution
plans financed by employees that may or may not be matched by
employer contributions).
POLICYHOLDERS' SURPLUS - The amount of money
remaining after an insurer’s liabilities are subtracted
from its assets. It acts as a financial cushion above and
beyond reserves, protecting policyholders against an
unexpected or catastrophic situation.
POLITICAL RISK INSURANCE -
Coverage for businesses operating abroad against loss due to
political upheaval such as war, revolution, or confiscation of
property.
POLLUTION
INSURANCE - Policies that cover property loss and
liability arising from pollution-related damages, for sites
that have been inspected and found uncontaminated. It is
usually written on a claims-made basis so policies pay only
claims presented during the term of the policy or within a
specified time frame after the policy expires.
PROPERTY/CASUALTY INSURANCE - Covers damage to
or loss of policyholders’ property and legal liability
for damages caused to other people or their property.
Property/casualty insurance, which includes auto, homeowners
and commercial insurance, is one segment of the insurance
industry. The other sector is life/health. Outside the United
States, property/casualty insurance is referred to as nonlife
or general insurance.
PROPERTY/CASUALTY
INSURANCE CYCLE - Industry business cycle with
recurrent periods of hard and soft market conditions. In the
1950s and 1960s, cycles were regular with three year periods
each of hard and soft market conditions in almost all lines of
property/casualty insurance. Since then they have been less
regular and less frequent.
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