Where there is a chance that, in the future, an injured person will suffer serious deterioration in his condition, the court is empowered to issue a declaratory judgment, which, in the event of such deterioration, enables the plaintiff to apply for a review of the original award. Where the declaration is made, the damages awarded are provisional.
Insurance Encyclopedia
Provisional premium
Premium requested by an insurance company for a type of policy that needs a premium adjustment. For example, a commercial property or liability insurance policy’s final premium is determined at the end of the policy period based on an insured’s loss experience and other factors.
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UK: The premium charged under an adjustable policy at the inception.
Provisional privileges
Temporary or conditional rights that a physician is given at a medical facility for a specific length of time during which supervisors assess and validate his or her clinical performance.
Provisional Rate
Tentative rates, premiums or commissions that are subject to subsequent adjustment.
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A temporary rate that can be adjusted at a later time.
Provisional Rate, Premium, or Commission
Tentative amounts applicable to either rate, premium or commission set at the start of the contract and subject to subsequent adjustment.
Provisioning risk
The risk that insurance company accounting provisions may be set at a lower level than is actually required. It misleadingly enhances the company’s financial situation upon which inappropriate underwriting decisions could be made. The capital available may not be sufficient to support the type or level of business that is accepted.
Provisions
(01) The terms or conditions of an insurance policy. (02) The practice among accountants is to apply the term provisions to the amounts set aside to provide for liabilities assumed to exist at the accounting date, and to apply the term reserves to amount available to meet liabilities that may arise after that date. Among actuaries and among practitioners of general insurance it has been widespread practice to apply the term reserve to both categories.
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Also known as a stipulation. A portion of the contract in which benefits and conditions of the policy are explained.
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The terms or conditions of an insurance policy.
Proviso
A condition inserted in a contract on the observance of which the validity of the contract depends.
Proviso clauses
Any term or clause in an insurance policy that describes its benefits, cover stipulations, conditions, limits or exclusions.
Proximate cause
MEDICAL,USA: Legal term dealing with the concept of cause-and-effect relationships (e.g., would an injury have resulted from a particular accident?).
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That event that, in an unbroken sequence, results in direct physical loss under an insurance policy. For example, wind is the proximate cause of loss when a windstorm blows out a window that in turn topples a lit candle that sets fire to a structure and burns it down.
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US: The dominating cause of loss or damage; an unbroken chain of events between the occurrence and damage.
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The immediate or actual cause of loss under an insurance policy. See Also: “Cause, Proximate.”
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UK: The insurer is liable only for loss proximately caused by an insured peril not loss caused by an excepted or uninsured peril. It is the dominant cause not the remote cause. The insurer will be liable if the sequence between an insured peril and the loss is unbroken (i.e one link in the chain is the natural and probable consequence of the previous link). If the initial cause in an unbroken chain is an excepted peril, the excepted peril is the proximate cause notwithstanding that it triggers an insured peril. As well as operating sequentially with other perils, the insured peril may run as a concurrent cause with other perils. Pawsey v. Scottish Union and National (1907) sets out a classic definition. See IMMEDIATE CAUSE; INTERVENING CAUSE; LAW STRAW CASES.