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Glossary
Plain-language definitions of insurance terms.
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Peril
A specific cause of loss listed in a policy — fire, theft, hail, vandalism, etc. Some policies cover only "named perils"; others cover all perils except those e...
Personal Injury Protection (PIP)
Coverage that pays medical expenses, and sometimes lost wages, for you and your passengers after a crash regardless of who was at fault. Required in some states...
Auto
Personal Property Coverage
The part of a homeowners or renters policy that pays for damage to or theft of your belongings.
Home
Policy Limit
The maximum amount your insurer will pay under a coverage. Limits can be per-claim, per-person, per-occurrence, or aggregate over the policy period.
POS Plan
A Point of Service plan blends HMO and PPO features: you pick a primary care doctor and need referrals, but you also get limited out-of-network coverage.
Health
PPO
A Preferred Provider Organization is a health plan that lets you see specialists without a referral and covers some out-of-network care, usually at a higher cos...
Health
Preauthorization
Approval a health plan may require before it will cover certain services, procedures, or drugs. Skipping it can lead to a denied claim.
Health
Premium
The price you pay for an insurance policy — usually monthly, semi-annual, or annual.
Premium Tax Credit
A federal subsidy that can lower the monthly premium for a health plan bought through the Marketplace, based on household income and size.
Health
Professional Liability Insurance
Also called errors and omissions, it covers claims that your professional advice or services caused a client financial harm. Common for consultants, agents, and...
Business
Proof of Loss
A formal, often sworn statement a policyholder submits documenting the details and value of a claimed loss, which the insurer uses to evaluate payment.
Property Damage Liability
The portion of an auto liability policy that pays for damage you cause to other people's property — usually their vehicle.
Auto
Provider Network
The group of doctors, hospitals, and other providers that have contracted with a health plan to deliver care at negotiated rates. Care from in-network providers...
Health