Glossary

A package policy is a combination policy providing several different coverages. It usually refers to a policy providing both general liability insurance and property insurance. Premium discounts are typically allowed to reflect cost efficiencies.

Paid-in capital refers to the capital acquired by a corporation from sources other than its business operations. The most common source of paid-in capital is the sale of the corporation's own common and preferred stock. The amount of paid-in capital becomes part of the stockholders' equity shown in a balance sheet.

Paid-up additions refer to single premium life insurance coverage bought in addition to the face amount of the policy by using policy dividends.

Paid business refers to a life insurance policy for which an application for coverage has been signed by the prospective insured, the medical examination has been completed, and the initial premium payment has been tendered and accepted by the insurance company, and all underwriting has satisfactorily been completed.

Paid losses are losses and allocated loss adjustment expenses (ALAE) paid to claimants during a financial reporting period.

Paid loss retrospective rating plan is an insurance cash flow plan that allows the insured to hold loss reserves until they are paid out in claims. Used most frequently with workers compensation and general liability lines.

Paid up at age life insurance refers to a life insurance policy that is in force during a policyholder's entire lifetime but where the premium payments have ceased because the policyholder has reached a specified age indicated in the policy.

Paid up life insurance refers to a life insurance policy that has all its premiums paid but has not matured by either death or endowment.

Pain and suffering refers to the physical discomfort, emotional trauma, and other nonquantifiable ills for which a claimant may collect from a negligent party in addition to the actual damages awarded.

A pair or set clause is a provision found in homeowners and commercial property forms dealing with losses involving part of a set or one of a pair. In this case, the insurer can either (1) repair or replace any part to restore the pair or set to its value prior to the loss, or (2) pay the difference between the actual cash value (ACV) of the property before and after the loss.