Glossary

Prohibited transactions refer to two types of transactions (involving employee pension and welfare plan funds) that are prohibited under the Employee Retirement Income Security Act (ERISA).

The prohibited transaction exemption (PTE) refers to a ruling by the US Department of Labor (DOL) based on specific facts and circumstances that a transaction is allowable under Employee Retirement Income Security Act (ERISA) regulations.

A prohibition of voluntary payments provision is a clause found in some liability policies barring coverage in the event that an insured makes a payment to a third party and then seeks reimbursement from the insurer.

Project liability insurance is a form of architects and engineers (A&E) liability coverage in which coverage applies only to an insured's work on a single project rather than to the entire scope of an insured's practice.

Project management professional liability (PMPL) insurance was developed to remedy some perceived problems with additional insured status and owners and contractors protective (OCP) liability insurance. It provides coverage for vicarious liability of the owner, primary architect and prime contractor as well as the contractor's general supervision of the project.

A promisee is the party to which the promise is made in contract law.

A promisor is the party that makes the promise and has a duty to fulfill it in contract law.

Promissory estoppel is a legal dotrine under which courts will enforce an agreement, even where consideration does not exist, when it is necessary to do so to avoid injustice.

A promissory note is a financial instrument used to provide an insurer with financial security necessary to implement a collateralized cash flow program, such as a retrospectively rated insurance plan.

A proof of loss is a formal statement made by the insured to the insurer regarding a claim. This form is especially used in property insurance, so that the insurer may determine its liability under the policy.