Glossary

Policy year experience associates the premium and losses with a given annual policy period.

Political risk insurance (PRI) is a specialized insurance for companies doing business or conducting operations in foreign countries.

Pollutant, as defined in standard liability insurance policies, is an irritant or contaminant, whether in solid, liquid, or gaseous form, including—when they can be regarded as an irritant or contaminant—smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.

A pollutant standard index (PSI) is a measure of adverse health effects of air pollution levels in major cities.

Pollution is the contamination of an environment by substances regarded as pollutants.

A pollution exclusion in first-party or third-party insurance policies that excludes coverage for losses caused by "pollution," defined to mean an irritant or contaminant, whether in solid, liquid, or gaseous form, including—when they can be regarded as an irritant or contaminant—smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.

A Ponzi scheme is a type of fraudulent investment operation (named after the notorious 1920s swindler Charles Ponzi) that pays returns to its investors from monies provided by subsequent investors, rather than from profit earned by the person or the organization running the operation.

A pool is a group of insurers or reinsurers through which particular types of risks (often of a substandard nature) are underwritten, with premiums, losses, and expenses shared in agreed ratios.

Portable benefits are employee benefits that can transfer from a former employer to a new employer or from a former employer to an individual who is leaving the workforce.

Portfolio is the book of business of an insurer or reinsurer, including all policies in force and open reserves.