What Are Pre-Disability Earnings? Pre-disability earnings are the amount of qualifying income that a disability insurance policyholder was earning before an injury. Pre-disability earnings are used to calculate how much disability income a policyholder will qualify for in the case of an injury. An injury may prevent the policyholder from working at all or prevent
What Is a Preexisting Condition? Preexisting condition is a term that refers to a known illness, injury, or health condition that existed before someone enrolls in or begins receiving health or life insurance. This includes illnesses such as heart disease, diabetes, cancer, and asthma. The majority of these conditions are generally considered to be long
What Is the Pre-existing Condition Exclusion Period? The pre-existing condition exclusion period is a health insurance provision that limits or excludes benefits for a period of time. The determination is based on the policyholder having a medical condition prior to enrolling in a health plan. The Affordable Care Act (ACA) drastically curtailed pre-existing exclusion periods
What Are Preference Shares? Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, preferred stockholders are entitled to be paid from company assets before common stockholders. Most preference shares have
What Is Preferred Debt? Preferred debt is a financial obligation that is considered more important than–or make take priority over–other types of debt. For example, the first–or senior–mortgage would be considered preferred debt (when comparing the first and second mortgage). This form of debt obligation typically has to be paid first because it carries more
What Is Preferred Auto Coverage? Preferred auto insurance is offered to drivers considered to fall into the lowest risk profile. This takes into account the driver’s characteristics, and is offered to drivers considered the least likely to file a benefits claim. These drivers pay the lowest premiums for coverage, lower than those for drivers with
What Is a Preferred Creditor? A preferred creditor, also known as a “preferential creditor”, is an individual or organization that has priority in being paid the money it is owed if the debtor declares bankruptcy. Key Takeaways If someone declares bankruptcy, a preferred creditor is an individual or company that has priority in being paid. The types
What Is a Preferred Dividend? A preferred dividend is a dividend that is allocated to and paid on a company’s preferred shares. If a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common shares. Key Takeaways Preferred dividends refer to the cash
What Is a Preferred Provider Organization (PPO)? A preferred provider organization (PPO) is a popular health insurance plan designed for individuals and families. PPOs involve networks that are made up of contracted medical professionals and health insurance companies. Healthcare facilities and practitioners, known as preferred providers, offer services to the insurer’s plan policyholders at reduced
What Is a Preferred Stock? The term “stock” refers to ownership or equity in a firm. There are two types of equity—common stock and preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders. The details of each preferred stock depend on the issue. Key Takeaways Preferred stock is
