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P. P/ P& Pa Pc Pd Pe Ph Pi Pl Pm Pn Po Pp Pr Ps Pt Pu Py

Property worked on’ exclusion

Public liability exclusion of the insured’s legal liability for damage to ‘that part of any property being worked on where the loss or damage is the direct result of such work. The intention is to exclude defective workmanship and the clause effectively operates as an excluded form of loss and not an cepted risk because any consequential damage will be covered.

Proportional reinsurance

UK: any form of reinsurance whereby the reinsurer participates proportionately in the premiums receivable and claims payable by the cedant.
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REINSURANCE,REFERENCE: See: Quota Share, Pro Rata Reinsurance, Surplus Reinsurance.
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UK: The cedant and the reinsurer share the risk in agreed proportions, either fixed (quota share treaty) or variable (surplus treaty) based on the ceding office’s retention and the sum insured. The reinsurer shares proportionally the premiums earned and the claims plus certain expenses incurred by the ceding office. Proportional reinsurances may be arranged facultatively or by treaty and they may include: quota share reinsurances; surplus treaties; facultative/obligatory treaties; reinsurance pools.

Proportionate Benefits

Where, in permanent health insurance, the insured, while totally disabled from following his occupation, is able to earn something in another occupation, the insurance usually provides for payment of benefit proportionate to his loss of earnings compared with his previous average earnings.

Proposal

A person interested in taking out insurance has to make an offer by means of a proposal. This is an application for the cover required, or for obtaining quotations of the premium chargeable.
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UK: an application by a person (known as the proposer) for insurance, generally by presentation of a printed form, and constituting an offer in contract law; the proposer becomes the insured when the application has been accepted and the contract brought into being.
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MEDICAL,USA: Formal suggested insurance plan offered by an insurance company to give insurance coverage to an employer, group, individual, or organization at stated premium rates. Also called quotation and quote.

Proposal form

UK:A form completed by a party seeking insurance. It enables the insurer to assess the risk, prepare the policy, and set up the administration. See BASIS CLAUSE.
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A questionnaire prepared by an Insurer to elicit details about proposed Insurance cover. It is a format designed to elicit all information necessary for a proper evolution of the risk and for rating. Questions asked fro according to the type of Insurance. Except in Marine cargo insurance, proposal forms are used in all classes of insurance, in which the proposer is required to answer questions. This form incorporates a declaration to the effect that the answers are warranted to be true and complete and shall form the basis of the contract. A typical declaration is worded as follows: “I/We hereby warrant that the above statements and particulars are true and complete, and I/We have not concealed, misrepresented or suppressed any material fact and I/we agree that this proposal and declaration shall be the basis of the contract between me/us and the Company and I am/we are willing to accept the policy subject to the terms, exceptions and conditions prescribed by the Company therein.” Wording may vary among different form but the legal effect of this declaration is to convert representations into warranties, that is to say, any incorrect or inaccurate answers to a question on the proposal form will render the contract voidable at the option of the insurer, irrespective of the fact whether it is material to the risk or not. The answers are required to be literally true and absolutely correct.
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UK:standard form used in most classes of business to elicit basic information about the proposer and the risk for which cover is sought.