Glossary

Promissory estoppel is a legal dotrine under which courts will enforce an agreement, even where consideration does not exist, when it is necessary to do so to avoid injustice.

A promissory note is a financial instrument used to provide an insurer with financial security necessary to implement a collateralized cash flow program, such as a retrospectively rated insurance plan.

A proof of loss is a formal statement made by the insured to the insurer regarding a claim. This form is especially used in property insurance, so that the insurer may determine its liability under the policy.

A Property Claim Law Associate (PCLA) is a designation offered by the American Educational Institute (AEI). It requires successful completion of both the AEI legal principles and property claims self-study programs.

A Property Claim Law Specialist (PCLS) designation is offered by the American Educational Institute (AEI). It requires successful completion of the AEI property self-study program.

Property damage (PD), as defined in the general liability policy and the homeowners policy, covers physical injury to tangible property including resulting loss of use and loss of use of tangible property that has not been physically injured.

Property insurance is first-party insurance that indemnifies the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is caused by a covered peril, such as fire or explosion.

Property transfer liability insurance covers the buyer of a property for third-party bodily injury (BI) and property damage (PD) claims and cleanup costs arising out of the environmental contamination of the property, but only for contamination that had not yet been detected as of the policy's inception date.

Proportional liability refers to an arrangement for the assignment of liability in which each member of a group is held responsible for the financial results of the group in proportion to its participation.

Proportional reinsurance refers to premiums and losses that are calculated on a pro rata basis.