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​Best-in-class personal and business insurance solutions customized for CPAs, their families and firms.


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Partial Disability
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.

Participating Policy
A policy under which policy dividends are paid.

Percentage Participation
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 Life policies.

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.)

Policy Loan
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).

Principle Sum
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 past.

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 education.

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 workload.

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.