Peril – Plainly, a peril can be defined as the occurrence or happening of something that causes or culminates in a loss. Only perils specifically stated in the insurance policy are covered.
Policy – This is the written contract effecting insurance, acting as evidence of the terms of the insurance contract. It commonly includes all clauses, riders, endorsements and relative information. A policyholder, therefore, is the insured.
Policy Anniversary Date – A long-standing policy, such as life insurance, commonly requires an annual review to assess the situation of the policyholder.
Policy Schedule – A total outline of the cover provided under the policy. It shows all personal details of the policyholder, as well as the cover given and the relevant limits, sums insured and excess.
Policy Wording - The terms and conditions that are set out in your policy.
Pre-Existing Condition – With regards to health insurance. For example, if a person has recently suffered a heart attack and then wishes to get insurance, it means that this person wants to enter the insurance with a pre-existing condition. The risk of them having another heart attack, or suffering from related conditions in the future, could be higher. Therefore, the coverage might be limited, their premiums may be higher or they may have to get dedicated cover.
Premium – The price one pays in return for insurance protection for a specified risk, for a specified period of time.
Pro-Rata - This latin term means in the same proportions and is used in the legal and financial context to describe different periods of time. For example, if you have joined a company on the 4th day of the month, you will be paid for the days you have worked, instead of a full calendar month.
Proof of Ownership – This is any form of evidence to show that the client actually owns the property. This could take the form of an invoice, photograph or certificate. For this reason, it's wise to keep all purchase slips for expensive items you've purchased.
Proof of Quantum – This sounds a lot more complicated than it actually is. The term refers to the value of any item being claimed. The insured will have to prove the quantum by submitting invoices for that item.