NOTE:  All definition are from the Insurance Bureau of Canada


PACKAGE POLICY - Any insurance policy which covers two or more lines or types of insurance in the same policy.

PAIN AND SUFFERING - A non-economic loss for which recovery  may be available against the wrongdoer in a lawsuit.

PAIR & SET CLAUSE - Establishes that loss or damage to one of a pair or set of individual items does not represent the loss of the pair or set.

PARTIAL LOSS - A loss covered by an insurance policy where the property or the premises are not completely destroyed or rendered completely worthless.

PENALTY - Liability limit on a fidelity or surety bond.

PERIL - This is the cause of loss or damage. A homeowner’s policy,  for example, insures against perils like windstorms, fire and theft.

PERIOD OF IMDEMNITY - Used in business interruption and disability insurance to define the length of time for which indemnity is payable.

PERMISSION GRANTED CLAUSE - Provision in most property insurance policies on real property that permits a policyholder to use insured premises for normal purposes related to occupancy.

PERSONAL ARTICLES FLOATER - A personal articles floater provides  all-risk coverage, subject to reasonable exclusions, for valuable items such as  furs, jewellery, cameras, silverware, etc. The items are generally listed by  description and value. This should not be confused with a personal  effects/property floater.

PERSONAL AUTO POLICY - Insurance policy issued to individuals covering risks arising out of the ownership or operation of a licensed automobile.

PERSONAL INJURY - An injury, other than physical, arising  out of false arrest or detention, malicious prosecution, wrongful entry or  eviction, libel or slander, or violation of a person's right to privacy.

PERSONAL PROPERTY - Possessions owned by an individual other than real estate or buildings (not attached to the land). Often used to refer to property in a Homeowner's policy.

PERSONAL PROPERTY INSURANCE - Home insurance covers the contents of a  home and other personal property that the named insured and members of the  household own, wear or use (including clothing, cameras, furniture, etc.) while  on the premises. It may even cover personal property of others (excluding  roomers or boarders who are not related to the insured) that is not otherwise  insured. There will normally be coverage for personal property while it is  temporarily away from the home anywhere in the world. Personal property not normally kept at home is not  covered. Personal property in a warehouse is usually covered against theft  without time limit, but other perils may not be covered, or may be covered only  up to 30 days.

PHYSICAL DAMAGE COVERAGE - The section of an automobile policy  that provides cover for damage to the insured vehicle. It may cover all perils,  collision or upset, all perils other than collision or upset (comprehensive) or  specified perils.

POLICY - Legally binding contract effecting insurance or certificates thereof, including all clauses, riders, endorsements and renewals.

POLICY CONDITIONS - Provisions which state the rights and duties of the insured or insurer.

POLICY EXPIRATION DATE - The date when an insurance policy expires. This date can be  found on the current Declaration (or "Dec") page, insurance  identification card, or recent cancellation notice.

POLICY FEE - An additional charge placed on the initial premium to reflect the cost of issuing a policy, establishing records and other expenses.

POLICY LIMIT - The maximum amount an insurer will pay under a policy,  either overall or under a particular coverage.

POLICY PERIOD - Duration of policy, most often one year in property/casualty insurance.

POLLUTION EXCLUSION - Standard general liability policies include an exclusion for loss arising out of pollution. For certain exposures this exclusion may be modified. e.g., "sudden and accidental" pollution arising from a fire.

PREMISES - Building including the land immediately surrounding it and belonging to it.

PREMIUM - An insurance premium is the money the policyholder pays to  the insurer for financial protection against specific risks for a specific  time-span. Unlike the premiums for many forms of life insurance, general  insurance premiums are not intended to produce a reward other than financial  peace of mind.

PRIOR INSURANCE - Insurance cover in force before the current insurance.

PRIVATE PASSENGER VEHICLE - A vehicle not used as a commercial vehicle. For example, if  a small van is used as a family vehicle, it is considered a private passenger  vehicle. However, if this same van is used as a full-time delivery vehicle, it  is considered a commercial vehicle.

PROOF OF LOSS - A formal statement made by a policyholder to the insurance company regarding a claim, specifying its circumstances and the amount of loss, especially in property insurance.

PROPERTY INSURANCE - Covers an insured's property against damage, destruction or loss by a covered peril.

PRO RATA CANCELLATION - Cancellation of an insurance policy or bond with the return premium credit being the full proportion of premium for the unexpired term of the policy.

PROVISIONS - Statements contained in an insurance policy which explain the benefits, conditions and other features of the insurance contract.

PROXIMATE CAUSE - Cause of loss or damage. Unbroken chain of cause and effect between the occurrence of an insured peril and damage to property.

  • We came back from London last Thursday night. Our daughter Anna had settled in London now and very anxious about her new school life. I want to thank you for introducing Fred to us for Anna's insurance. He was super helpful (day and night) that made me feel so easy to get things going as we travel.