Partial Disability

Inability of the insured to perform one or more of the important daily duties of his or her regular occupation. The income payment to the insured is reduced from that of total disability.

Payee

An insured individual or a beneficiary who receives a loss or benefit payment from an insurer.

Personal Liability Insurance

Part of a standard homeowners policy that covers financial losses you suffer when you accidentally cause bodily injuries to others or damage to their property.

Policy Basis

The amount of the policyholder’s investment in a life insurance policy reduced by any dividends and any cash value withdrawals.

Policy Loan

The amount that the owner of a life insurance policy can borrow, at an interest rate set by the company, from the insurer up to the cash surrender value. If interest is not paid when due it is deducted from … Continued

Policy Period

Time period during which an insurance policy is in force.

Pre-existing Condition

An illness or medical condition for which a person was treated or advised within a specified time period before applying for a life or health insurance policy. A preexisting condition can result in the cancellation of the policy if it … Continued

Preferred Risk

An insured or applicant for insurance who has a lower expectation of incurring a loss than the standard applicant and can obtain favorable premiums.

Premium

The payment required for an insurance policy to remain in force.