What does the term "PD" refer to in insurance?

• A. Policy Document
• B. Property Damage
• C. Personal Defense
• D. Public Disclosure

Answer: (B)

The term "PD" in insurance refers to Property Damage. This designation is commonly used within various types of insurance policies, including auto and liability coverage. Property Damage pertains to physical damage to tangible property caused by an accident or occurrence that is typically covered under an insurance policy. For example, in an auto accident, the costs associated with repairing or replacing the damaged vehicles would fall under Property Damage.

Understanding this term is crucial for interpreting insurance contracts, as it outlines the scope of coverage for damages to property that are not owned by the insured but are affected as a result of their actions. This is a key component of liability coverage, ensuring that policyholders are protected financially if they cause damage to another party's property.