Glossary

A partner is a member of a partnership or firm; one who has united with others to form a partnership in business and who participates fully in the profits, losses, and management of the partnership and is personally liable for its debts. Partners in a named insured partnership under a commercial general liability (CGL) policy automatically qualify as insureds.

A partner controlled insurance program (PCIP) is a variation on the owner controlled insurance program (OCIP) or contractor controlled insurance program (CCIP), all of which provide a master insurance, safety, and claim management program for enrolled contractors performing work on a construction project. The distinguishing feature of a PCIP is that two or more of the parties to the project (e.g., the owner, general contractor, subcontractors, etc.) jointly sponsor the program. The partnership encompasses the development and operation of the program, as well as any cost savings.

Partner track is a term used in law firms to describe and evaluate an associate's potential for partnership. An associate who is progressing appropriately is deemed "on track."

Party-in-interest transactions are otherwise legitimate transactions that are prohibited under the Employee Retirement Income Security Act (ERISA). The Act defines a party-in-interest as any fiduciary, legal counsel, employee of an employer-sponsored benefit plan, or service provider to the plan. Accordingly, pension plan funds cannot be used to buy or sell property to or from a person who is a party-in-interest. For example, a pension plan could not purchase shares of stock in a company owned by a member of the company's investment committee. ERISA provides for specific monetary fines and penalties for violations of party-in-interest rules. Fiduciary liability insurance policies cover the defense costs incurred in conjunction with allegations of party-in-interest violations; although no coverage is available for damages, fines, and penalties associated with such claims.

A party in a litigation context is any person or entity named as a plaintiff, defendant, cross-complainant, or cross-defendant in a lawsuit.

Party walls are walls that separate two adjoining buildings owned by different parties but are common to those buildings. Insurance issues arise when a party wall is damaged but only one of the two parties that own the wall is able or willing to pay for its repair. In such cases, a party wall provision, introduced in the 2010 edition of the businessowners policy (BOP), makes it clear that the insurer of the party that wants to fix the wall will pay the full value of the loss, subject to other policy provisions. The insurer may then attempt to subrogate against the owner or insurer of the premises on the other side of the wall.

A pass-through entity is a corporation that is disregarded for purposes of calculating taxable income. The income earned in a pass-through entity is attributed to its shareholder or ultimate parent and taxed at that level.

A passive foreign investment company (PFIC) is an offshore company whose income is more than 50 percent passive investment income or 75 percent of whose assets produce such passive investment income.If an offshore captive is deemed a PFIC, the tax burden on its owners will increase substantially.

An economic loss not associated with any physical damage or injury is commonly referred to as a passive loss. For example, if a home is built using substandard materials, the owner has incurred an economic "loss," but without actual physical damage neither the homeowner's insurance nor the builder's liability insurance would be triggered for this loss.

Pastoral professional liability insurance is a type of professional liability insurance that covers both individual pastors and religious leaders and the religious organization. A major exposure covered by pastoral professional liability insurance is counseling by ministers or similar individuals. Pastoral professional liability insurance may combine other coverages as well, such as sexual abuse and molestation coverage and potentially management liability coverage (like directors and officers (D&O) liability and employment practices liability (EPL) coverages).