Glossary

A practice insurance policy refers to a policy that covers a professional's entire "practice," versus one that is written to apply to a specific project.

The pre-claim advice credit is a provision found in professional liability policy forms affording a reduced deductible (or retention) if, prior to the time a claim is made, the insured reports the "incident" giving rise to the claim to the insurer.

Pre-judgment interest is interest accruing on the amount of a legal award from the time of the injury or damage to the time the judgment is entered by the court.

The pre-set allocation provision is found in directors and officers (D&O) liability policy forms indicating the specific percentage of each claim that will be "allocated to" (i.e., paid by) the insured and the insurer, respectively.

A preadmission review (PAR) is a review required by some health insurance plans prior to an insured being admitted to a hospital for a nonemergency procedure.

A preamble is an introductory paragraph in a contract that identifies the parties by name and the date on which the parties entered into the contract and typically includes the place of residence of an individual or the place of business of a corporation or other entity.

A preauthorized check plan is where the insured authorizes an insurer to periodically debit his bank account for the purpose of making premium payments.

Precedent is a case that provides guidance or authority for deciding subsequent cases involving identical or similar facts, or similar legal issues.

Predecessor firm coverage refers to a provision found in professional liability policies written mainly for lawyers or accountants that affords coverage for the acts of the firm that preceded the current insured organization.

Predictive analytics (PA) or modeling is the discipline that analyzes current and historical facts to make predictions about future events.