Glossary

A professional reinsurer is a company whose business is confined solely to reinsurance and the peripheral services offered by a reinsurer to its customers.

The professional services exclusion is an exclusion commonly endorsed onto general liability policies and found within directors and officers (D&O) liability insurance policies.

Profit center captives are captives that have the primary function of earning underwriting income by writing unrelated risk.

A profit commission is a provision found in some reinsurance agreements that provides for profit sharing.

A profit sharing plan is a defined contribution benefit plan that does not promise a set amount at retirement.

Program business refers to groupings of insurance customers or applicants with common operations that often form associations or risk purchasing groups (RPGs).

A program business captive is a captive that insures or reinsures a "program"—that is, a group of homogeneous risks, none of which is individually underwritten.

Progressive injury or damage describes injury or damage that happens gradually and worsens over time. For example, wood rot starts slowly and gets progressively worse over time.

Prohibited risk is any class of business excluded by underwriters of an insurance company that will not be insured under any condition.

Prohibited transactions refer to two types of transactions (involving employee pension and welfare plan funds) that are prohibited under the Employee Retirement Income Security Act (ERISA).