Where a managing agent increases the underwriting capacity of a syndicate, for example when it expects to write more business in future. The participations of the members of the syndicate are increased proportionately to the extent the managing agent’s pre-emption offer is taken up.
Insurance Encyclopedia
Pre-existing Condition
A physical and/or mental condition of an insured person which existed prior to the first time issuance of his or her policy.
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A physical condition of an insured person which existed prior to the issuance of his policy.
Pre-existing medical condition
A physical or mental condition that existed prior to the effective date of the insured’s health-based insurance. The policy usually excludes claims where a condition, the subject of medical treatment or consultation within one year prior to policy inception, has contributed to the claim. If, after two years of insurance, a pre-existing condition has not necessitated further treatment, the exclusion will not usually apply.
Pre-launch insurance
Satellite insurance providing all risks’ insurance from the completion of the assembly until the launch. The policy operates while the satellite is in storage and transit and also covers third party risks. The cover continues until the intended time of the launch engine’s ignition. If the launch is aborted the policy may become operative once again.
Pre-licensing education requirement
A requirement mandating that any person applying for an insurance license has to finish an education course before he or she can be considered eligible for a license.
Pre-loss minimisation
See: loss prevention.
Pre-slung cargo
Cargo shipped already in a cargo sling or net. Usually prepared and loaded at pier ready for arrival of vessel and subsequent loading (i.e., coffee in bags, coconut shells, etc.).
Pre-tax Operating Income
Pre-tax operating earnings before and capitals gains generated from underwriting, investment and other miscellaneous operating sources.
Pre-tax Return on Revenue
A measure of company’s operating profitability and is calculated by dividing pre-tax operating earnings by net premiums earned.
preadmission certification (PAC)
Component of a managed care plan that reviews an inpatient hospital stay prospectively to determine coverage. Also called preauthorization. See precertification.