Skip to Content

Glossary


Similar to an insurance policy limit, the penal sum represents the maximum amount a surety company will pay under a bond.

Read More

A pension is an arrangement in which employees are provided with an income during retirement, usually in the form of monthly payments once they are no longer working.

Read More

The Pension Benefit Guaranty Corporation (PBGC) is an independent agency of the federal government that was established in 1974 as part of the Employee Retirement Income Security Act (ERISA).

Read More

The Pension Protection Act of 2006 is a federal law affecting major aspects of the Pension Benefit Guaranty Corporation (PBGC) and defined contribution (i.e., 401(k)) plans.

Read More

A per-loss deductible specifies the amount of first-dollar loss paid by the insured for each loss.

Read More

Percentage participation refers to a provision in a health insurance contract stipulating that the insurer and insured will share covered losses in agreed proportions.

Read More

A perfect hedge is an investment vehicle designed to mitigate the financial risk inherent in a portfolio of investments and/or in the normal course of business.

Read More

Often referred to as "forever chemicals,” perfluoroalkyl substances (PFAS) are a large group of synthetic chemicals widely used in various consumer products since the 1950s. They can be found in everyday items such as food packaging, stain-resistant carpets, nonstick cookware, and water-resistant clothing. PFAS are highly resistant to environmental degradation. Studies have shown that some types of PFAS can accumulate in the bodies of humans and other animals. People are typically exposed to PFAS by consuming PFAS-contaminated water or food, breathing air containing PFAS, or using any of the wide array of consumer products made with PFAS. Repeated exposure can potentially lead to increased blood levels of PFAS over time. Research conducted in 2023 by the National Institute of Environmental Health Sciences (NIEHS) shows links between exposure to PFAS and adverse health outcomes such as metabolism, pregnancy, immune function, and (in children) cognitive and neurobehavioral development.

Read More

A performance bond guarantees that the contractor will perform the work in accordance with the construction contract and related documents, thus protecting the owner from financial loss up to the bond limit (called the penal sum) in the event the contractor fails to fulfill its contractual obligations.

Read More

A performance ratio is a test of an insurer's or reinsurer's financial strength—for example, Standard & Poor's solvency ratios, which track net premium to adjusted shareholder funds, and liquidity ratio, which looks at technical reserves to liquid assets.

Read More