Glossary

A policy year is the period between anniversary dates.

Policy year experience associates the premium and losses with a given annual policy period.

Political risk insurance (PRI) is a specialized insurance for companies doing business or conducting operations in foreign countries.

Political violence refers to general conditions of war, civil war, insurrection, and civil strife, as well as acts of sabotage and terrorism that cause losses to insured operations. This coverage applies apart from any insurance that may cover direct damage to property of the insured. Political violence policies cover property damage, loss of income, and extra expenses that result from acts of violence listed and defined in the policy. Covered acts vary but may include war, civil war, malicious damage, terrorism, sabotage, riot, strike, and civil commotion.

Pollutant, as defined in standard liability insurance policies, is an irritant or contaminant, whether in solid, liquid, or gaseous form, including—when they can be regarded as an irritant or contaminant—smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.

A pollutant standard index (PSI) is a measure of adverse health effects of air pollution levels in major cities.

Pollution is the contamination of an environment by substances regarded as pollutants.

A pollution exclusion in first-party or third-party insurance policies that excludes coverage for losses caused by "pollution," defined to mean an irritant or contaminant, whether in solid, liquid, or gaseous form, including—when they can be regarded as an irritant or contaminant—smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.

A Ponzi scheme is a type of fraudulent investment operation (named after the notorious 1920s swindler Charles Ponzi) that pays returns to its investors from monies provided by subsequent investors, rather than from profit earned by the person or the organization running the operation.

A pool is a group of insurers or reinsurers through which particular types of risks (often of a substandard nature) are underwritten, with premiums, losses, and expenses shared in agreed ratios.