Preamble

(i) The introduction to a treaty wording, establishing the parties to contract and the basis for operating the contract. (ii) Preamble clause: The clause in a Policy form giving the basic essentials of the contract.
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See: RECITAL CLAUSE.

Preauthorization

Requirement in some health insurance plans for a physician or provider to obtain permission for a service or procedure before it is done and to see whether the insurance program agrees it is medically necessary. Factors determining authorization are eligibility, benefits of a specific plan, and setting of care. Also called approval, authorization, or preapproval. See also precertification and predetermination.

Preauthorized payment

Bank service that permits a debtor to request funds to be transferred from the customer’s bank deposit account to the account of a creditor. Also called automatic bill payment, bank check plan, check-o-matic, check deposit billing, electronic funds transfer system (EFTS), or preauthorized checking.