In a life insurance policy, if no beneficiary is listed, the insurance company will pay the proceeds from the policy in a stated order to the individuals shown in the contract.
Insurance Encyclopedia
Preference Ordinary Shares
A share in the capital of a company which gives the holder the right to a fixed dividend, after payment of any dividend due to the holders of preference shares, in preference to the payment of dividend on other ordinary shares.
Preference Share
A share in the capital of a company which gives the holder preference over the holders of ordinary shares in the payment of dividends up to a stated amount, and in return of capital in a liquidation.
Preferred plan
Managed care plan that requires members to receive medical services from the network’s physicians at a reduced cost instead of a doctor of their own choice at a larger cost.
Preferred provider
Any licensed health care professional who contracts with a managed care plan such as ambulatory surgical center, dentist, hospital, physician, and podiatrist.
preferred provider arrangement (PPA)
System in managed care, in which a limited number of providers are selectively contracted at reduced rates of payment.
preferred provider network (PPN)
Under the TRICARE program, group of civilian practitioners to supplement military direct care in TRICARE Prime and Extra. PPN members offer discounts, file patients’ claims, and must meet the same professional standards as military treatment facility providers.
Preferred Provider Organization
Group of Hospitals, physicians and other health care providers that contract with insurers, third party administrators, or directly with employers to provide medical care to members of the contracting group(s) at discounted prices per unit of service.
preferred provider organization (PPO)
1. Type of mixed health-plan model that combines managed care and traditional insurance. Enrollees receive the highest level of benefits when they obtain services from a physician, hospital, or other health provider designated by their program as a “preferred provider.” They may receive substantial, though reduced, benefits or may have additional cost when they obtain care from a provider of their own choosing who is not designated as a “preferred provider” by their program. 2. A Medicare+Choice coordinated care plan that has a network of providers who have agreed to a contractually specified reimbursement for covered benefits with the organization offering the plan. It provides for payment for all covered benefits regardless of whether the benefits are given with the network of providers. It is offered by an organization that is not licensed or organized under state law as a health maintenance organization (HMO). 3. Type of Medicare Advantage Plan in which the patient uses doctors, hospitals, and providers that belong to the network. Patients can use doctors, hospitals, and providers outside of the network for an additional cost.
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An organization of health care providers and/or facilities that offers a discount on services to members of the PPO.
Preferred provider organization (PPO) (Health Insurance)
An alternative to an HMO network available under certain health insurance plans. A network of care providers who treat members of a health insurance plan for a pre-determined fee. The insured may be required to pay a small co-payment while the rest of the charge is usually covered by the plan. This type of network is less restrictive than an HMO, as the insured is free to choose a hospital and physician.