Glossary

Provisional notice of cancellation (PNOC) is given to allow the option of withdrawing from the reinsurance treaty if renewal terms are unacceptable.

Proximate cause is the cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. Courts employ a set of proximate cause rules to resolve causation disputes when a property policy states that it covers or excludes losses "caused by" a peril and there is more than one peril at work in a fact pattern. Under common law, whether the policy provides coverage depends on which peril is chosen as the proximate cause. If the peril selected as the proximate cause is covered, courts consider the loss to have been caused by the covered peril and will hold that the loss is covered. If the peril selected as the proximate cause is uncovered or excluded, courts consider the loss to have been caused by the uncovered or excluded peril and will hold that the loss is not covered. As a principle of tort law, proximate cause refers to a doctrine by which a plaintiff must prove that the defendant's actions set in motion a relatively short chain of events that could have reasonably been anticipated to lead to the plaintiff's damages. If the defendant's actions were "proximate" or close enough in the chain of causation to have foreseeably led to the plaintiff's damages, courts will impose liability. Otherwise, if the defendant's actions set in motion a long, bizarre chain of events that could not have reasonably been foreseen to lead to the plaintiff's damages, courts will not impose liability. In tort law, multiple actions by one or more defendants that are a substantial factor in producing the loss can qualify as proximate causes.

Pro forma financial statements are a set of financial statements (usually an income statement, balance sheet, and statement of cash flow) designed to exhibit future financial results.

Pro hac vice is a Latin term that means "for this time only." For example, a lawyer from New York who is not licensed to practice in Texas may, for a Texas trial, be admitted pro hoc vice to work on the particular case.

Pro rata means proportionately.

Pro rata cancellation refers to the cancellation of an insurance policy or bond with the return of unearned premium credit being the full proportion of premium for the unexpired term of the policy or bond, without penalty for interim cancellation.

A pro rata distribution clause is a seldom used property insurance provision that essentially converts a single blanket limit, applying over several locations, to specific limits.

Pro rate reinsurance is a transaction in which the reinsurer receives a percentage of premium and pays a proportional share of losses, above the ceding company's retention.

Pro se is a Latin term that means "for oneself" or "on behalf of oneself." Pro se refers to a plaintiff who does not (or is unable to) hire an attorney and who represents himself or herself.

Psychological rehabilitation is one aspect of the overall rehabilitation process that concentrates on restoring the injured person's mental condition to a healthy status.