| Word |
Definition |
| 401(k) |
The 401(k) under section 401(k) of the plan is a type of employer-sponsored retirement plan in the United States Internal Revenue Code and some other countries. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or "deferred", into his or her 401(k) account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. Many companies' 401(k) plans also offer the option to purchase the company's stock. The employee can generally re-allocate money among these investment choices at any time. In the less common trustee-directed 401(k) plans, the employer appoints trustees who decide how the plan's assets will be invested. |
| Minimum and Deposit Premium (or M&D Premium) |
A policy minimum premium charged on a surplus lines policy. If the premium is based upon an estimated exposure such as gross sales or payroll, policy cancellation or policy audit will not result in a return premium to the insured if the audited exposure is less than the estimated exposure. For example, if a policy is written based on $1,000,000 gross sales, and it is canceled or audited later with actual gross sales reported at less than $1,000,000, no return premium will result for the insured due to the Minimum & Deposit Premium provision. However, additional premium may result if the audited exposure exceeds the estimated exposure. |
| Policyholder Surplus (PHS) |
As reported on a statutory basis, the sum of all unassigned surplus of a mutual insurer, or for a stock insurer, the sum of all unassigned surplus and capital. |
| Predecessor Firm |
Refers to a partnership or professional corporation that has been dissolved and where at least 50 percent of its lawyers are still affiliated with the named insured under a professional liability policy. |
| Personal Insurance Federation of California (PIFC) |
A trade association of insurers, operating in California, who specialize in writing personal lines (private vehicle and homeowners) coverage in that state. Headquarters, Sacramento, CA. |
| Property Casualty Insurers Association of America (PCI) |
A trade association of more than 1,000 U.S. P&C insurers. It began in 2004 from a merger between the National Association of Independent Insurers and the Alliance of American Insurers. The combined organization performs numerous functions, focusing on advocating membership concerns from the national to the local level. It also acts as an advisory organization and statistical agent for independent insurers. Headquarters: Des Plaines, IL. |
| Probate Bond |
A fidelity bond that protects a dependent party (such as a legal estate) against the dishonest acts of a fiduciary. |
| Pure No-fault Insurance |
A theoretical concept in which no party would sue another for injury or damage from an automobile accident. Each party's insurer would pay the loss without considering who was at fault. In practice, only modified versions of this concept are actually used. |
| Puffback |
Refers to a furnace, boiler or similar equipment that releases soot, smoke, vapors or fumes onto the covered property and causes damage. |
| Public Official Bond |
Refers to a government unit requirement to carry a bond guaranteeing that a given public official will perform his or her required job. |
