Glossary of Insurance Terms

P

Package policy

Several basic property and/or liability policies combined to form a single policy. Contains a common declarations page, common policy conditions, and two or more agreement "coverage parts," such as dwelling coverage, other buildings, personal property, etc.

Paid-up survivor

In a long-term care insurance policy this optional rider provides for a noncancelable, paid-up policy upon payment of a single premium. If you select the single premium and nonforfeiture benefit, you may surrender your policy while it is in force for a cash nonforfeiture benefit.

Passport plan

A network of providers who are outside of your plan's geographic service area, usually in a different state, which can be used by you in non-emergency or urgent care situations. Some managed care plans have these networks available to individuals who travel to certain states. Check with your plan on the availability of this provision.

Peril

A property insurance term referring to the possible cause of loss such as a fire or windstorm.

Personal liability

This coverage protects you against a claim or lawsuit resulting from bodily injury or property damage to others. The coverage applies to you and all family members who live with you.

Personal property

All tangible property not classified as real property.