The result of an illness or injury which prevents an insured from performing one or more of the
functions of his or her regular job.
A policy under which policy dividends are paid.
A practice followed in major medical insurance in which the insurer and the policyowner share the
medical expenses incurred by the insured individual in accordance with a specified ratio, such as 80
percent to be paid by the insurer and 20 percent to be paid by the policyowner. Also called coinsurance.
The cause of loss or damage.
Permanent Life Insurance
A term loosely applied to Life Insurance policy forms other than Group and Term,
usually Cash Value Life Insurance, such as endowments and Whole or Ordinary
PFP/Investment Advisory Services
Developing strategies and making recommendations to assist clients in defining
and achieving personal financial goals. This could include creating financial
plans and assisting clients with plan implementation, or providing general or
specific investment advice. Investment advisory services could include portfolio
management services or recommendation/referral to investment managers, insurance
agents or securities brokers.
Physician's Expense Insurance
Coverage which provides benefits toward the cost of such services as doctor's fees for nonsurgical
care in the hospital, at home or in a physician's office, and X-rays or laboratory tests performed
outside the hospital. (Also called Regular Medical Expense Insurance.)
A loan from a life insurer to the owner of a policy that has a cash value.
Preferred Provider Organization (PPO)
An arrangement whereby a third party payor contracts with a group of medical care providers who
furnish services at lower than usual fees in return for prompt payment and a certain volume of patients.
Pre-Paid Group Practice Plan
A plan under which specified health services are rendered by participating physicians to an enrolled
group of persons, with a fixed periodic payment in advance made by or on behalf of each person or
family. If a health insurance carrier is involved, a contract to pay in advance for the full range of
health services to which the insured is entitled under the terms of the health insurance contract. Such
a plan is one form of Health Maintenance Organization (HMO).
The amount payable in one sum in the event of accidental death and in some cases accidental dismemberment.
Prior Acts Coverage
Most professional liability claims-made policies offer optional coverage for
services performed prior to the effective date of the policy. This is called
prior acts coverage. Prior acts coverage is typically extended to the
effective date of a firm's first claims-made policy (when claims-made coverage
has been maintained continuously) or to some date that your firm and the insurance
company agree upon for pricing or underwriting reasons. The date established
is called the prior acts date or retroactive date. Generally, the date
remains the same with each subsequent renewal. If an act, error or omission
happened before the prior acts date, it will not be eligible for coverage. With
prior acts coverage, you can move your coverage from one insurance company to
another without losing protection for covered services you performed in the
The underwriter of the Professional Liability Insurance Program,
Continental Casualty Company, considers a "professional" to be anyone
who meets at least one of the following criteria:
- Anyone who performs tax, bookkeeping, compilation, review, audit,
attest, assurance, or consulting services for clients, including per
diems and independent contractors;
- Anyone who holds a professional accounting designation (CPA, PA, or enrolled agent);
- Anyone who holds a college degree in accounting, a BA/BS with
an accounting major or has equivalent practical experience/professional
The number of professionals in a firm is used to determine a firm's
Revenue to Professional ratio, which is a general indicator of
Professional Standards Review Organization (PRSO)
An organization in which practicing physicians assume responsibility for reviewing the propriety and
quality of health care services provided under Medicare and Medicaid.
The adjustment of benefits paid because of a mistake in the amount of the premiums paid or the existence
of other insurance covering the same accident or disability.
This information should not be construed as legal advice or a legal opinion on any factual situation.
This summary is for illustrative purposes and is not a contract. It is intended to provide a general
overview, at the time first posted, of the topics described. Only the insurance policy can give actual
terms, conditions and exclusions.