A risk better than the standard risk on which the premium rate was based.
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Any risk considered to be better than the standard risk on which the premium rate was calculated.
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Exposure an Insurer welcomes because it promises more favorable loss experience than other exposures in the same rating class and, therefore, should generate an Underwriting profit.
Insurance Encyclopedia
Preferred risk class
Category for an insured or applicant of insurance who has a lower expectation of incurring a loss and has greater life expectancy than a standard applicant and qualifies for a reduced premium rate (e.g., applicant who does not smoke, applicant who does not drink). Also called superstandard risk class.
preferred-drug list (PDL)
See: formulary or drug formulary.
Prefunding
System of financially supporting the cost of retirement coverage while employees are still working.
Pregnancy care
Federal legislation enacted in 1978 requiring employers with 15 or more employees who are engaged in interstate commerce and subject to Title VII of the Civil Rights Act of 1964 to give the same benefits for pregnancy, childbirth, and related medical conditions as benefits for other illnesses or injuries.
Pregnancy legislation
See: pregnancy care.
Preinjury capacity
In workers’ compensation cases, an employee’s capability to perform work before any work-related injury or illness.
Preliminary inquiry form
Application form used when the applicant might not be issued or will be issued with a high substandard rating that the premium will be unacceptable. Also called trial application.
Preliminary report
See: First Report of Injury.
Preliminary Term
Insurance protection for a temporary period which precedes the effective date of a permanent Policy form.
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Short-term insurance coverage issued to a policyholder to cover the risk until the date the policyholder wishes to establish at the long-term policy’s anniversary date.