Glossary

Portfolio reinsurance is a financial transaction in which an entire line of insurance, class of business, territory, or book of business of an insurer is reinsured. Under portfolio reinsurance, the reinsurer assumes all of the primary insurer's liability. It is typically arranged when an insurer wishes to discontinue operations in a specific state or territory.

Portfolio return is the return of unearned reinsurance premium to the ceding company when a reinsurance treaty is terminated. It is the opposite of a portfolio runoff.

Portfolio runoff refers to a practice under which a reinsurance portfolio is allowed to continue until all ceded premium is earned or all losses are closed, or both.

Portfolio transfer refers to the cession of a book of business—for example, for an insurer withdrawing from writing a certain class of risk. Since the business has already been written, it is retroactive insurance, so it is a balance sheet only transaction (transfer of assets and liabilities).

Port risk is a type of coverage afforded a vessel that is laid up for an extended time period, normally in excess of 30 days. Coverage is provided for both physical damage and protection and indemnity.

Post-emergency recovery involves all the actions an organization takes to restore its operations and protect its personnel and other persons after a major accident. Specific actions include (1) cleaning up, protecting, and restoring damaged equipment and the infrastructure as quickly as possible, (2) contacting all key suppliers of goods and materials as well as customers to reschedule and modify shipments, and (3) establishing detailed timetables and procedures for resuming regular operations.

Post-judgment interest is interest on any judgment against the insured that accrues from the time the judgment is entered by the court to the time the actual payment is made. Post-judgment interest, when awarded as part of a judgment against the insured, is covered by the supplementary payments provision of standard general liability policies. A policy providing this coverage requires the insurer to pay interest on the entire judgment, even if that judgment is larger than the limits of liability. The reason for this is that the timing of the insurer's payment is beyond the control of the insured, and interest imposed during delays by the insurer in satisfying the judgment should be the insurer's responsibility.

Postmortem dividend refers to a policy dividend paid after the death of the insured. It is sometimes called "mortuary dividend."

A potentially responsible party (PRP) is any individual or organization—including owners, operators, transporters or generators—potentially responsible for, or contributing to, a spill or other contamination at a Superfund site. Whenever possible, through administrative and legal actions, the US Environmental Protection Agency (EPA) requires PRPs to clean up hazardous sites they have contaminated.

Power of atttorney is legal document giving authority to one person or organization to act on behalf of and obligate another.