Glossary

Pure endowment refers to an endowment payable at the end of the policy period if the insured is alive. If the insured has died, there is nothing paid in the form of benefits.

Pure loss cost under a reinsurance agreement is the ratio of reinsured losses to the ceding company's earned, subject premium for that agreement, less expense loading. It is also known as "burning cost."

The pure mortality cost is a factor considered in developing life insurance premiums. The pure mortality cost is the face amount of a life insurance policy, multiplied by a probability factor indicated on a mortality table.

Pure risk is the risk involved in situations that present the opportunity for loss but no opportunity for gain. Pure risks are generally insurable, whereas speculative risks (which also present the opportunity for gain) generally are not.

A purpose-not-designated exclusion is an aircraft policy exclusion that is triggered when the aircraft is used for a purpose not designated in the policy. For the exclusion to apply, the aircraft typically must be used for an unauthorized purpose with the knowledge and consent of the named insured, an executive officer, or partner.

A putative class action is a lawsuit brought by one or more named plaintiffs on behalf of a potential group of similarly situated individuals (known as a class) who allegedly suffered a common claim. Lawsuits do not become class actions until an actual class has been certified by the court. Therefore, a putative class action means the class has not yet been certified by the court. If the court certifies the class, the lawsuit becomes a class action.

Putting in expenses is a coverage extension found in a protection and indemnity policy that pays for port charges incurred as well as the net loss to the policyholder when the vessel must deviate from its specified route to put ashore a sick or injured passenger or crew member.