|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.” www.pianet.com
Proximate cause: The dominant cause of loss or damage which, in an unbroken sequence, results in direct
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.