Dictionary

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Performance Bond

A Surety Bond that guarantees a job will be completed by the contractor according to contract specifications.

Peril

Cause of a potential loss. An insurance policy may name the perils insured against, or it may be an All-Risk form: one that insures against all Perils not specifically excluded in the policy.

Periodic Estate

An interest in leased property that continues from period to period, week to week, month to month, year to year.

Periodic Payment Cap

For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease during any one adjustment period. See cap.

Periodic Rate Cap

For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be. See cap.

Permanent and Total Disability

The definition of Total Disability actually varies by company. For example, in a Disability Income policy, some insurers state that you are not totally disabled unless you are confined to the hospital, which is very restrictive. Others state that you are totally disabled if you cannot perform your own job, which is very broad. Most policies state that you are totally disabled if you cannot perform your own job for the first two years and that you are unable to perform any job that you are suited to do by virtue of education, training or experience thereafter.

Permanent Insurance

Whole Life insurance is considered to be permanent since it covers you until you die or to age 100, whichever comes first. Term insurance is considered to be temporary.

Personal Articles Floater

Personal Inland Marine insurance that provides All-Risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.

Personal Auto Policy

Easy-to-read auto policy that provides broad coverage for both owned and non-owned autos that are used, maintained, and/or operated by the insured and family.

Personal Injury Coverage

Liability coverage for third-party claims for damages that are other than physical, such as libel, slander, false arrest, wrongful eviction, invasion of privacy, etc.