::Glossary (P)::

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Political Risk Cover This covers inconvertibility (the failure to tranfer foreign currency), public buyer default and contract frustration or cancellation as a result of events outside the control of the exporter and his buyer (e.g. war, import licensing etc)

Preference Shares These are shares yielding a fixed rate of dividend. No dividends may be paid to any other class of shareholder unless the preference dividend had been paid in full. The preference shareholders usually exercise no control over the management of a company.

Preferential Creditors Such creditors are paid in priority to the holders of floating charges and in priority to unsecured creditors. They include PAYE, VAT and employees renumneration.

Premium Rate The percentage of a company's insurable turnover which the Insurer charges for insuring its credit risks.

Profit Margin A measurement of trading success - take pre-tax profit/loss as a percentage of sales turnover.

Proposal Form The form on which the prospective Insured applies for a Credit Insurance policy.

Protracted Default A reason for a claim under the policy. Protracted Default occurs 90 days after the due date (or postponed due date). These claims are payable 6 months after Protracted Default has occurred, provided that the debt is not in dispute.