This principle is bound up with subrogation. Where the same loss or damage becomes the subject of a claim under both a first party policy covering the owner’s interest and another person’s liability for that loss/damage, the liability insurer ultimately pays for the loss as their insured is primary liable. The property owner has no direct claim against the liability owner, only against the third party.
Insurance Encyclopedia
Primary Loss
A deductible, employed in credit insurance and bad debts intended to reflect normal credit losses of the insured firm.
Primary payer
1. Insurer obligated to pay losses first when two or more insurers may be responsible for paying the claim. 2. Medicare is a primary payer with respect to Medicaid; for a person eligible under both programs, Medicaid pays only for benefits not covered under Medicare or after Medicare benefits are exhausted. 3. An employer’s health plan if a Medicare patient is covered by that plan, and then Medicare is the secondary payer. 4. Insurance carrier or managed care plan that has the first responsibility under the coordination of benefits clause between two or more insurers.
Primary provider of benefits
When coordinating benefits of two insurance plans, the medical expense plan pays benefits first before any benefits are paid by another medical expense plan.
Primary Rating Factor
An index number that reflects the additional risk of various classes of insureds, under rate-making plans in automobile insurance used for personal and professional purposes.
Primary Reinsurance Clause
A clause whereby the Reinsurer agrees that he will be Directly liable to the original assured in the event that the reassured is unable to pay a loss.
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UK: A clause under which the reinsurer agrees to pay losses directly to the insured. The clause is rarely used.
Primary site
Site where the tumor began or originated.
PRIN
the FSA’s Principles for Businesses manual, setting out the fundamental obligations for all firms under the regulatory system.
Principal
(i) An individual or Company whose performance of certain obligations is covered by a bond. (ii) The money due under the Policy. (iii) The party to a transaction, as distinguished from the broker or Agent. (iv) A sum lent or employed as a fund of investment, as distinguished from its income or profits. (v) The original amount (as of a loan) of the total due and payable at a certain date.
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UK: 1. One who authorises an agent, to act on his behalf. If an agent purports to act on his own behalf, his principal is called an undisclosed principal. 2. A principal debtor is one who owes a debt that is guaranteed by a surety. 3. A sum of money put out at interest. 4. An authorised firm that accepts regulatory responsibility for contracted appointed representative firms and individuals. The principal must report its contracted agreement with an AR to the FSA for inclusion in the FSA Register. See PRINCIPAL’S CLAUSE.
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A person or organization whose obligation are guaranteed by a bond.
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MEDICAL,USA: Entity that authorizes another individual or representative to act on behalf of the principal in dealing with third parties.
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Used in suretyship, it refers to the individual whose performance is guaranteed.
Principal (Surety)
The company or person who is guaranteed by the surety.