D – Glossary of Terms

ALPHABETICAL LISTING 

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Data Processing Insurance:
Coverage for electronic media, computers, and other electronic data processing equipment. No coinsurance is applied to this type of coverage.

Death Benefit:
A life insurance payment made to a designated beneficiary upon the death of the insured.

Declarations:
Information such as name, description, and location of insured property, premiums payable, coverage amounts, are placed on what agents call the Declarations Page.

Declination:
The insurer’s rejection of an insurance application.

50% Deductible Offset:
Up to 50% of the deductible will be applied towards claim expenses incurred as a result of a covered cause of loss. The insured would become responsible for the claim expenses incurred as a result of a covered cause of loss up an amount equal to 50% of the deductible, even if no indemnity payment is awarded to the claimant.

100% Deductible Offset:
Up to 100% of the deductible will be applied towards claim expenses incurred as a result of a covered cause of loss. The law firm would become responsible for all claim expenses incurred as a result of a covered cause of loss up to the amount of the deductible. This would be paid even if no indemnity payment is awarded to the claimant.

Deductible:
The amount which a policyholder agrees to pay, per claim or per accident, toward the total amount of an insured loss.

Deferred Annuity:
An annuity deferring income payments to begin at some specified future date.

Deferred Compensation:
Arrangements by which compensation to employees for past or current services is postponed until some future date.

Defined Contribution Plan:
A plan which the contribution rate is fixed and benefits to be received by employees after retirement depend upon the contributions and their earnings.

Dental Insurance:
An individual or group insurance plan that will pay for costs of normal dental care as well as damage to teeth from an accident.

Dependent:
An individual, usually a spouse or child, who depends on another for financial support and maintenance.

Deposit Premium:
The premium deposit paid when an application is made for an insurance policy. It is usually equal to the first month of estimated premium and is applied toward the total premium when billed.

Depreciation:
The decrease of value in property over a period of time due to wear and tear or obsolescence.

Direct Loss:
Any financial loss that results directly from an insured peril.

Direct Writer:
An insurance industry term for which an insurance company uses their own sales employees to write insurance policies.

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:
A physical or mental impairment that limits major life activities of an individual.

Disability Benefit:
The payment, made usually monthly, payable to participants under a Disability Income policy or a provision of some other policy.

Disability Income Insurance:
A type of health insurance that provides a periodic payment to replace income when the insured is unable to work as a result of illness, injury, or disease.

Disappearing Deductible:
A deductible in an insurance contract that provides for a decreasing deductible amount as the size of the loss increases.

Dismemberment:
Loss of a body member (limbs), or use thereof, or loss of sight due to injury.

Dismemberment Insurance:
A type of health insurance that provides payment in case of loss by bodily injury of one or more body members (such as: hands or feet) or sight of one or both eyes.

Disposable Personal Income:
Personal income minus personal tax and nontax payments. This is the income available to people for spending and saving.

Dividend:
An amount returned to a policyholder by an insurance company out of its earnings.

Dividend Additions:
An option to where an insured can pay-up insurance purchased with a policy dividend and add to the face amount of the policy.

Dollar Threshold:
In the State of Florida, and other no-fault auto insurance states with the dollar threshold, this prevents individuals from suing in tort to recover for pain and suffering unless their medical expenses exceed a certain dollar amount.

Domestic Insurer:
An insurance company is considered a domestic company in the state in which it is incorporated.

Double Indemnity:
An insurance policy provision usually associated with death, which doubles payment of a designated benefit when specified causes or under specific circumstances occur.

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 Forms:
An insurance policy designed to cover a dwelling and the personal property that is in it plus some additional coverage’s. There are several forms available, check with us for your dwelling insurance needs.

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