Insurance Handbook - Alaska Department of Community and ...

1970s responsibility for funding retirement
has increasingly shifted from employers
(defined benefit plans that promise workers
a specific retirement income) to employees
(defined contribution plans financed
by employees that may or may not be
matched by employer contributions). (See
Defined benefit plan; Defined contribution
plan)
*PER CAPITA BENEFICIARY
DESIGNATION
A type of life insurance policy beneficiary
designation in which the life insurance
benefits are divided equally among the
designated beneficiaries who survive the
insured. For example, if the policy specifies
two beneficiaries, but only one is surviving
at the time of the insured’s death, then the
remaining beneficiary receives the entire
policy benefit. Contrast with Per stirpes
beneficiary designation.
*PER STIRPES BENEFICIARY
DESIGNATION
A type of life insurance policy beneficiary
designation in which the life insurance
benefits are divided among a class of
beneficiaries; for example, children of
the insured. The living members of the
class and the descendants of any deceased
members of the class share in the benefits
equally. Contrast with Per capita beneficiary
designation.
PERIL
A specific risk or cause of loss covered by
an insurance policy, such as a fire, windstorm,
flood, or theft. A named-peril policy
covers the policyholder only for the risks
named in the policy in contrast to an allrisk
policy, which covers all causes of loss
except those specifically excluded.
Glossary
*PERIOD CERTAIN
The stated period over which an insurer
makes periodic benefit payments under an
annuity certain. (See Annuity certain)
PERSONAL ARTICLES FLOATER
A policy or an addition to a policy used to
cover personal valuables, like jewelry or
furs.
PERSONAL INJURY PROTECTION
COVERAGE/PIP
Portion of an auto insurance policy that
covers the treatment of injuries to the
driver and passengers of the policyholder’s
car.
PERSONAL LINES
Property/casualty insurance products that
are designed for and bought by individuals,
including homeowners and automobile
policies. (See Commercial lines)
POINT-OF-SERVICE PLAN
Health insurance policy that allows the
employee to choose between in-network
and out-of-network care each time medical
treatment is needed.
POLICY
A written contract for insurance between
an insurance company and a policyholder
stating details of coverage.
*POLICY DIVIDEND OPTIONS
Ways in which the owner of a participating
insurance policy may receive policy
dividends. (See Additional term insurance
option; Cash dividend option; Dividend
accumulations option; Paid-up additional
insurance option; Premium reduction option)
POLICYHOLDERS’ SURPLUS
The amount of money remaining after an
insurer’s liabilities are subtracted from its
assets. It acts as a financial cushion above
I.I.I. Insurance Handbook www.iii.org/insurancehandbook 113