PART, SHARE – the expression is applied in reinsurance practice, when initial insurer retains a part of risk under its responsibility and the balance part assigns to reinsurance.
PARTIAL LOSS – any loss in insured property, amount of which haven’t reached the total sum insured, i.e. total loss does not have place.
POLICY HOLDER - See Insured.
PREMIUM – an amount, paid by an insured to an insurer for acceptance of liabilities to pay out a corresponding amount to a policy holder upon insured event pursuant to conditions of an insurance agreement.
PREMIUM PROVISION – according to generally accepted conditions of reinsurance agreements, assigning party has the right to retain a part of reinsurance premium for creation of provision for payments of losses and premium returns.
PREMIUM SUBJECT TO CORRECTION – There are cases, when the liability volume of an insurer cannot be determined exactly and it is paid primarily and advance payment of the premium or a part of the premium, and the final premium amount is corrected at the expiration of the period the policy validity.
PROBABILITY OF INSURED EVENT – on the basis of statistical data, a quantitative estimation of probability of occurrence and frequency of dangers, demonstration consequence of which occurrence of insured event can be,
PROPORTIONAL (SHARE) SYSTEM OF INSURANCE COVERAGE – provides for insurance indemnification payment in the volume of a such part of the loss, which the sum insured makes up in relation to evaluation of insurance object. For example, if the sum insured is equal to 80% of insurance object evaluation, the insurance indemnification shall be either equal to 80% of the loss. Herewith a part of the loss remains on the risk of the insured: the lesser the difference between the sum insured and insurance object evaluation, the higher the extent of the indemnity fullness.
PROPORTIONAL REINSURANCE – an organization form of reinsurance agreements. It includes quota, excess and quota-excess agreements.
PROVISION OF UNPAID LOSSES IN INSURANCE – special funds, established by an insurer for fulfilment of financial obligations on losses declared to it, but not paid yet.