Dictionary

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Package Mortgage

A method of financing in which the loan that finances the purchase of a home also finances the purchase of certain items of personal property such as a washer, dryer, refrigerator, stove and other specified appliances.

Paid-Up

Life insurance on which all premiums have been paid, but have not yet matured by death or endowment.

Paid-Up Additions

Additional single-premium Life insurance paid for by policy dividends and added to the face amount. For example, your mutual insurer declares a $100 dividend, which you could have taken as cash. Instead, you ask them to use the money to buy you an additional Whole life policy, which is paid up to age 100. Although this additional policy is small, no physical exam is required, so this option is very popular with clients who have health problems. Over a period of time, you can obtain substantial additional coverage.

Pair and Set Clause

A clause found in various Property insurance contracts that states that when part of a set is damaged or destroyed, the insured is not entitled to reimbursement for the entire set. Policies provide various methods for determining the amount of reimbursement. Fine Arts floaters do not contain this clause.

Panic Peddling

The illegal practice of inducing panic selling in a neighborhood by making representations of the entry, or prospective entry, of members of a minority group, also called blockbusting.

Parcel

A specific portion of a large tract of real estate, a lot.

Partial Disability

A condition in which, as a result of injury or sickness, the insured cannot perform one or more of the duties of his/her occupation but can perform some. Follows a period of Total Disability.

Partial Loss

A loss that does not either 1) completely destroy or render worthless the insured property, or 2) exhaust the insurance applying thereto.

Partial Payment

A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan.

Participating (Par)

Insurance that pays policy dividends to policyholders. Issued by a Mutual Company. Dividends may never be guaranteed and they are not taxable, since the IRS considers them to be a return of premium already paid.