Glossary

Proximate cause is the cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. Courts employ a set of proximate cause rules to resolve causation disputes when a property policy states that it covers or excludes losses "caused by" a peril and there is more than one peril at work in a fact pattern. Under common law, whether the policy provides coverage depends on which peril is chosen as the proximate cause. If the peril selected as the proximate cause is covered, courts consider the loss to have been caused by the covered peril and will hold that the loss is covered. If the peril selected as the proximate cause is uncovered or excluded, courts consider the loss to have been caused by the uncovered or excluded peril and will hold that the loss is not covered. As a principle of tort law, proximate cause refers to a doctrine by which a plaintiff must prove that the defendant's actions set in motion a relatively short chain of events that could have reasonably been anticipated to lead to the plaintiff's damages. If the defendant's actions were "proximate" or close enough in the chain of causation to have foreseeably led to the plaintiff's damages, courts will impose liability. Otherwise, if the defendant's actions set in motion a long, bizarre chain of events that could not have reasonably been foreseen to lead to the plaintiff's damages, courts will not impose liability. In tort law, multiple actions by one or more defendants that are a substantial factor in producing the loss can qualify as proximate causes.

Pro forma financial statements are a set of financial statements (usually an income statement, balance sheet, and statement of cash flow) designed to exhibit future financial results. They are created using known (or sometimes assumed) input data (usually expenses), along with an estimated amount of revenue, to project an estimated amount of earnings. These statements are commonly used for new risk funding programs such as captives and risk retention groups (RRPs).

Pro hac vice is a Latin term that means "for this time only." For example, a lawyer from New York who is not licensed to practice in Texas may, for a Texas trial, be admitted pro hoc vice to work on the particular case. It refers to an attorney who is not admitted to a particular jurisdiction but is allowed to participate in a particular case. The specific rules of pro hac vice admission might vary from one jurisdiction to another.

Pro rata means proportionately.

Pro rata cancellation refers to the cancellation of an insurance policy or bond with the return of unearned premium credit being the full proportion of premium for the unexpired term of the policy or bond, without penalty for interim cancellation.

A pro rata distribution clause is a seldom used property insurance provision that essentially converts a single blanket limit, applying over several locations, to specific limits.

Pro rate reinsurance is a transaction in which the reinsurer receives a percentage of premium and pays a proportional share of losses, above the ceding company's retention.

Pro se is a Latin term that means "for oneself" or "on behalf of oneself." Pro se refers to a plaintiff who does not (or is unable to) hire an attorney and who represents himself or herself.

Psychological rehabilitation is one aspect of the overall rehabilitation process that concentrates on restoring the injured person's mental condition to a healthy status. It focuses on removing any phobias, anxieties, or self-doubts arising out of the disability. This work is normally accomplished by psychologists and counselors.

A public-private partnership is an arrangement between a governmental entity and a private entity to finance a public project with private funds. The most common use of this arrangement in the United States is for highways, but it can be utilized on a variety of other infrastructure projects. In exchange for providing the financing, the private entity receives a share of the revenue generated by the project, such as tolls or fees, for a specified time period. Airports, telecommunications, power plants, and university housing are examples of how public-private partnerships are being deployed.