Insurance Glossary D

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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.

Deductible ­ clause in a policy requiring the insured to bear the first part (e.g. $250.00) of a partial 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 ­ a premium which is based on an estimate and is subject to adjustment at renewal, or some other agreed time, using the actual figures.

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.

Dishonesty, Disappearance and Destruction Policy (3-D Policy) ­ combination policy plan of fidelity insurance and crime insurance under five standard agreements:

1. Insuring Agreement I ­ dishonesty of employees on either a commercial blanket bond or blanket position bond basis.

2. Insuring Agreement II ­ coverage inside an insured's premises or a bank premises if money and securities are lost due to dishonesty, disappearance or destruction.

3. Insuring Agreement III ­ coverage of money and securities being transported by an insured's messenger outside an insured's premises if they are lost due to dishonesty, disappearance or destruction.

4. Insuring Agreement IV ­ coverage if an insured accepts counterfeit U.S. or Canadian paper currency or money orders of no value.

5. Insuring Agreement V ­ coverage for deposit forgery if an insured's own commercial paper is forged or altered.

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.