Insurance Terms
Dealers Drive-Away Coverage: A coverage which can be added to the Garage policy by endorsement. It eliminates the exclusion regarding coverage for autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart.
Debris Removal: A coverage provided in many property contracts which reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against.
Declarations: The page of an insurance contract that indicates the name of the policyholder, the insurance company, the period of coverage, what is covered (property, liability) under the contract.
Declination: Rejection of an application for insurance by the insurer.
Deductible: Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. See also Franchise, Percentage and Straight.
Depreciation: Decrease in the value of any type of tangible property over a period of time resulting from use, wear and tear and obsolescence.
Deviating Company: An insurance company which varies (deviates) from bureau rules, rates or forms.
Direct Bill: The bill for the premium is produced by the insurance company and sent directly to the policyholder. The policyholder then pays the insurance company directly.
Direct Damage Loss: A loss involving value of tangible property which is physically damaged.
Direct Loss: Any financial loss that results directly from an insured peril
Direct Writer: An insurance company that secures its business either through the direct selling system (its own employees) or the exclusive agency system (captive).
Directors' and Officers' Liability Insurance: The protection of corporate directors and officers from liability arising out of errors in judgement, duty breachments, and any wrongful acts related to their organizations
Disability Income Insurance: Line of insurance which includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness.
Discovery Period: A period of time, in Crime insurance, during which losses that occurred during the policy period but are discovered during the “Discovery Period” will be covered.
Dividend: Distribution of profit from a company to its policyholders.
Documentation: Supporting evidence or proof as to what has been done and the reason therefore.
Domestic Insurer: An insurance company formed under the laws of the state in which the insurance is written.
Double Indemnity: A Health policy provision that doubles death benefits
otherwise applicable for accidents under specified circumstances.
Draft: A form of payment, almost like a check.
Draft Authority: Authority granted to the agent by the insurance company to
handle small claims and issue drafts within prescribed limits.
Dread Disease Policy: A Health insurance policy which provides benefits for
a single illness.
Drive Other Car Coverage: An endorsement to the Business Auto policy
which covers named persons for nonbusiness use of autos they do not own.
Used when the named insured furnishes an auto to another, such as an
employee, who does not own his or her own car.
Driver Education Credit: A student discount or reduction in premium amount for which younger drivers become eligible on completion of a driver education course. These courses are available in most public school systems
Duplication of Benefits: A situation where identical or overlapping coverage of the same type exists between two or more health insurance plans
Dwelling Policy: An allied lines policy which provides coverage for the
dwellings and personal property of individuals and families against fire andadditional perils.
Difference In Conditions: An insurance policy that is purchased in addition to a named perils property insurance policy to obtain coverage for perils not insured against in the named perils policy.
