debris removal A clause often added
to the policy under which the company assumes liability for the removal
of debris resulting from damage to the property covered by the peril
insured against.
declarations Statements made by the
applicant relating to the risk. In casualty insurance, the declarations
are frequently made a part of the policy - included in this portion
of the contract is descriptive information relating to the subject covered,
insured, policy period, policy limits, deductible and premium.
declination Rejection of an application
for insurance by the insurer.
deductible A certain dollar amount
beyond which insurance protection begins. The insured assumes the loss
up to the deductible limit and the insurer pays the remainder, up to
the policy limit.
deferred annuity An annuity
contract which provides for the postponement of the commencement of
annuitized payments until after a specified period or until the annuitant
attains a specified age. Deferred annuities may be purchased either
on the single premium or annual premium basis. Deferred annuities are
sometimes known as "retirement annuities."
demolition clause Used
to insure against loss resulting from laws or ordinances regulating
construction or repair. Requires additional premium.
deposit premium (dep. prem.)
That premium paid at the inception of the policy based on known or expected
exposures. Premium is adjusted following an audit, to reflect the actual
exposures during the policy period.
depreciation The decline in value
of property due to age, use, wear and tear, etc. Depreciation is a very
important item in the adjusting of property losses.
direct loss Loss of, or damage
to, the primary subject of the insurance agreement which is the immediate
result of a hazard insured against. It is frequently very difficult
to determine whether a loss is direct or consequential.
direct-response insurer
An insurer that sells through the mail or other mass media (e.g., newspapers,
magazines, radio). No agents are used to sell the insurance.
direct writer An insurer
in which the salesperson is an employee, not an independent contractor.
disability income insurance
A form of insurance that provides periodic payments to replace income
if the insured is unable to work due to injury or illness.
discovery period A term
used in the bonding business. An employee might misappropriate money
during the term of a fidelity bond but the employer might not discover
this until several months after the termination of the bond. Bonds usually
provide a definite period of time after their expiration during which
the employer may discover dishonest acts committed while the bond was
in force.
dividend In insurance, this means a refund
to the policyholder of that portion of their premium which is not needed
to pay their share of the losses and expenses incurred during the policy
period. Dividends are paid by mutual, participating stock companies
and sometimes by reciprocals.
dividend additions Participating
policies provide that policy dividends may be used as single premiums
at the insured's attained age to purchase paid-up insurance as additions
to the amount of insurance specified on the face of the contract. See
paid-up additions.
domestic insurance company
An insurer organized under the law of the state of domicile.
double indemnity Payment
of twice the basic benefit if the loss results from specified causes
or under specified circumstances.
draft An instrument, similar in appearance
to a check, directing the payment of money subject to approval by the
payor when presented for payment. Most often used for payment of insurance
losses.
