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Noncurrent
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The condition existing when two or more policies on a risk do not cover identically (a condition to be avoided because of difficulty in adjusting, as well as the possibility that the insured will recover less than anticipated).
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Nonforfeiture Benefit
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The provision in some life insurance contracts which specifies the benefits that cannot be forfeited even if premium payments are not made. These types of benefits may include the paid-up insurance value, the loan value, or the cash surrender value.
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Nonresident Agent
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Insurance agents must be licensed in each state where they write business. When an agent is domiciled in one state but also writes business in another, the agent is considered a nonresident in all states except the state of domicile.
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Nonsmoker Discount
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Because of the data and statistics available showing that non-tobacco users have fewer health problems, credits are offered in some life and health insurance programs for those insureds who commit to not using tobacco products.
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Notice of Loss
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The notice submitted by an insured to the insurer regarding the occurrence of a loss. Policy conditions specify how long the insured has to notify the insurer of the loss, in what format, and the information the loss notice must contain.
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Notice of Occurrence
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The notice of the occurrence of a loss, that must be submitted by an insured to the insurer in a liability contract. Policy conditions specify when the insured should notify the insurer of the loss, in what format, and the information the notice should contain.
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Obligee
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The party in whose favor a bond runs, such as the party protected from loss under the bond.
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Obligor
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One bound by the obligations covered by a bond. Also called the principal.
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Occupancy
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1)The use to which a building is put.
2)The type of contents a building contains.
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Occurrence
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1)In a non-insurance sense, an incident, event or happening. In insurance, the term may be defined as continual, gradual or repeated exposure to an adverse condition which is neither intended nor expected to result in injury or damage, as contrasted with an accident, which is a sudden happening. In reinsurance, per occurrence coverage permits all losses arising out of one event to be aggregated instead of being handled on a risk-by-risk basis.
2)One basis or determinant for calculating the amount of loss or liability in insurance or reinsurance when an aggregation of related losses is to constitute a single subject of recovery. For example, in property catastrophe reinsurance treaties, occurrence is usually defined so that all losses within a specified period of time involving a particular peril are deemed an occurrence.
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Occurrence Policy
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The traditional occurrence liability insurance method provides coverage for losses from liability-imposing causes which occurred during the policy period, regardless of when the claim is asserted. Once the policy period is over in a claims-made form, the approximate extent of the underwriter's liability is known. With the traditional occurrence liability coverage method, the underwriter may not discover the extent of liability for years to come from losses claimed to have occurred within the policy period.
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Ocean Cargo Insurance
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A type of marine insurance that provides property protection for cargo that is being shipped by sea or over water.
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Ocean Marine Insurance
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The protection of ships, their cargoes, and the freight, including protection and indemnity insurance to cover shipowners' liabilities for loss of life to any person, illness or injury to crew, damage to cargoes carried, and damages to fixed or floating objects.
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Off-Premises Clause
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Language which may be added to a policy indicating that personal property is covered when elsewhere than on the premises described in the policy.
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Off-Premises Services Coverage
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Property and time element endorsements designed to cover the insured for losses that result from the interruption of services by an insured cause of loss. The current endorsements allow the insured to select coverage for off-premises services, whether supplied by a private or public utility. Protection may be purchased for the following options, including water suppliers, communication suppliers, or power supplies.
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Omissions Clause
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A provision that applies to treaty reinsurance agreements. In those cases where the reinsurance treaty would have normally applied to a risk,but the ceding insurer unintentionally omitted the risk from the Bordereau (the report of ceded risks) the omitted risk is still covered.
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Omnibus Clause
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A part of an automobile or yacht liability policy which extends coverage to persons and orgnizations other than the named insured, such as members of the insured's family, servants and others using the automobile with the owner's permission. When these extensions were introduced,the policy was said to have an "omnibus clause."
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Ordinance or Law Coverage
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A property endorsement which provides the insured the option to purchase coverage for three types of common building ordinance or law requirements that apply after an insured has suffered a physical damage loss such as fire. These ordinance or law damages are normally excluded in standard property coverage forms. The coverages available in this endorsement are cost to demolish the undamaged portion of the building, cost to replace with superior construction as required by law, and cost to clear the land of debris after demolition.
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Other Insurance Clause
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Language in many policies which states the method for apportioning the loss between two or more policies covering the same property at the time of loss.
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P & I Insurance
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Protection and indemnity insurance for shipowners, contractors, and charterers against liabilities arising out of the operation of the vessel for loss of life to any person, illness or injury to passengers and crew, damage to cargo while loading, carrying or unloading cargo, damage to piers and docks, and removal of wreckage as required by law.
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Pair-And-Set Clause
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An inland marine policy provision which requires the insurer, at the insured's option, to restore or pay for the entire pair or set of jewelry or fine arts when only a part has been lost, destroyed or damaged.
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Partial Loss
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One involving less than all of the values insured or calling on the policy to pay less than its maximum amounts.
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Patent Insurance
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1)Insurance coverage for losses the insured may suffer as a result of another party's infringing upon the insured's patent rights.
2)Insurance coverage for allegations against the insured of infringements upon the rights of a patent holder.
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Payroll Audit
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An examination and verification of an insured's records for the amount of payroll for classes of employees which is used in determining the premium for certain lines of insurance, such as workers compensation. The company sends out auditors to determine the accuracy of the figures provided by the insured.
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Peak Season Endorsement
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A property endorsement that allows an insured to purchase additional property damage insurance for specified cyclical periods occurring on a regular basis. The insured purchases an underlying limit that remains constant throughout the entire year. Additional limits are purchased to increase the underlying limits for specified periods of time. Both the amounts and the dates of the increase are indicated in the endorsement. This type of endorsement provides protection for risks that are seasonal or have significantly higher inventories at set times each year, such as the holidays.
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Performance Bond
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In general terms, surety bond guaranteeing the performance of a contract, usually associated with construction work, but possible for almost any kind of contract.
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Peril
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The cause of loss; for example, fire, wind, vandalism, or accident.
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Perils of The Sea
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Causes of loss unique to the operation of ships and their cargoes, such as sinking, stranding, heavy weather, etc., but not fire, lightening or theft.
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Personal Injury Protection (PIP)
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Also known as a no-fault insurance, PIP provides insurance for medical costs, loss of earnings, additional living expenses, and funeral costs for occupants of the insured automobile and pedestrians, other than those insured under other policies.
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Personal Effects Floater
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An inland marine policy which insures articles, usually accompanying travelers, against "all-risks" while away from home.
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Personal Injury
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Injury, other than bodily injury, resulting from false arrest, false detention, false imprisonment, malicious prosecution, wrongful eviction, wrongful entry, or the invasion of privacy of a premises. It also includes injury caused by oral or written material that slanders a person, goods, products, services, or which violates the right of privacy.
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Personal Property
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Property other than real property; chattels.
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Personal Property of Others
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Contents, business personal property, and any other property excluding real property, that is not owned by the insured.
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Physical Damage
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1)As used in property or liability insurance, physical injury to tangible property.
2)As used in automobile insurance, actual damage or loss of the vehicle itself caused by collision, overturn, fire, theft, vandalism, or malicious mischief.
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Physical Hazard
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Danger of loss or liability arising from the condition, occupancy or use of property, as opposed to such danger arising from the character of the policyholder.
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Pilferage
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Theft in small quantities, for example,not limited to the taking of a whole package or all of the property insured.
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Piracy
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Robbery on the high seas; typically, the seizure of a vessel and cargo.
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Pleasure Use
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A rating classification term used in auto insurance that indicates the vehicle is not used for business and does not have commercial exposures, other than to drive back and forth from work.
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Policy
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The formal written contract of insurance.
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Policy Fee
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A charge made by an agent on small premium policies, in addition to the premium set forth in the policy, which is kept by the agent. The practice is made illegal under the insurance laws of most states.
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Policy Loan
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A life insurance policy nonforfeiture benefit, whereby the insured may borrow from or take a loan from the insurer based on the cash surrender value of the policy.
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Policy Reserve
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The percent of premium that an insurer must set aside in a reserve to pay claims and fulfill the obligations of insurance contracts. On an individual policy basis, each policy has its own pro rata share of the total accumulated policy reserve covering the insured's entire book of business.
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Policy Year
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The year commencing with the effective date of a policy or with the renewal date of that policy, to be distinguished from the calendar year, which always starts from January 1. A term of particular importance in the collection of loss statistics.
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Policyholder Surplus
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As reported on a statutory basis, the sum of all unassigned surplus of a mutual insurer, or for a stock insurer, the sum of all unassigned surplus and capital.
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Port Risk Insurance
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An ocean marine insurance designed to protect a vessel that is portside for a lenghty period of time. Coverage terminates as soon as the vessel leaves port.
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Power Interruption Insurance
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Property and time element endorsements designed to cover the insured for losses that result from the interruption of services by an insured cause of loss. The current endorsements allow the insured to select coverage for off-premises services, whether supplied by a private or public utility. Protection may be purchased for the following options: water suppliers, communication suppliers, or power supplies.
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Power of Attorney
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A document which authorizes a person to act for another within the limitations it contains. A subscriber to an interinsurance exchange executes such a document in favor of the person who operates the exchange.
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Premises
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The building or section of a building, insured or containing the insured property. Depending on policy conditions,it may also include an adjacent area.
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Premium
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The amount of money an insurance company charges to provide coverage.
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Premium Adjustment Provision
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Policies for which a deposit or estimated premium is charged at inception but recalculated at expiration, based on the acutual exposure covered during the policy period.
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Services