Florida Insurance Glossary Terms "P,Q,R"
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Passive Restraint System:  A system that protects passengers of a motor vehicle and is engaged automatically,
such as air bags.

Payment Plans:  The variety of methods and frequency available for remittance premiums.

PD:  A common abbreviation for Property Damage Liability.  

Peril:  A potential cause of loss.

Personal Auto Policy:  An automobile insurance policy designed for individuals as opposed to a business or

Personal Injury Protection (PIP):  That section of a policy in a No-Fault state that pays for bodily injuries, loss of
income, and funeral expense after an accident regardless of fault.  

Personal Lines:  The variety of coverages available to individuals as opposed to a business or company.

Physical Damage:  That portion of coverage on an automobile policy that reimburses for damage to the
automobile for a covered peril.

Policy:  The written contract between a carrier and the policyholder.

Policyholder:  The individual or entity that has entered into a contract with a company.

Premium:  The dollar amount charged to a policyholder.

Primary Insurance:  The first policy to apply after a loss.

Proof of Loss:  Document demonstrating a loss has occurred to the claimant.  

Property Damage Liability Coverage:  Pays on behalf of the policyholder for property damage that they become
legally obligated to pay.    

Pro Rata Cancellation:  A cancellation that results in a return of premium to the policyholder without a penalty.

Producer:  The person responsible for selling insurance i.e. agent, employee.

Professional Insurance Agents (PIA):  “Voluntary, membership based, trade association representing
professional independent insurance agents throughout the United States.”  

Proximate cause:
 The dominant cause of loss or damage which, in an unbroken sequence, results in direct
physical loss.

Public Adjuster:  An individual or firm that represents a claimant after a loss.

Punitive Damages:  The purpose of punitive damages is to punish a defendant and to deter a defendant and
others from committing similar acts in the future.
Qualify:  The process by which an underwriter determines eligibility of an applicant.

Quota:  Quota is a word often used to denote a proportional share. Florida is a comparative negligence state,
whereby at-fault parties proportionally share damages from an accident.
Rate filing:  Documentation filed with the state requesting approval to change the existing rates.

Rating Agencies:  Independent companies that determine a carrier's ability to meet its financial obligations.

Rebate:  A partial return of commission to a policyholder as an incentive to purchase.

Reinstatement:  The commencement of a policy after a cancellation or lapse.

Reinsurance:  This is coverage that companies purchase to minimize their exposure.

Renewal:  An uninterrupted continuation of a contract after its expiration.

Rental Reimbursement:  An option that reimburses the policyholder for a rental car while their car is unusable
after a covered loss and before the claim is settled.

Renewal Date:  The date which a policy continues as a renewal after expiration.

Resident Adjuster:  One who is licensed and resides in the state where he is adjusting.

Residual Markets:  Ones established outside the normal marketing channels to cover unusually large or poor

Retention:  The amount of exposure retained by a company as opposed to the amount of exposure which is
reinsured. Also, the ratio or number of policies which do not cancel and non-renew.

Rider:  An endorsement which changes or adds to the basic contract.

Risk:  A piece of business or a submission to an insurer.
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