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LEGAL GLOSSARY |
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Glossary of
Insurance Terms
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Debit System: The system of collecting
insurance premiums weekly or monthly by an agent.
Death Benefit: Amount paid to the
beneficiary upon your death.
Declarations Page: The front page of your
policy containing information such as the exact name of your insurance company,
the policy number, your coverage, the amounts of your coverage and your
deductibles.
Declination: The rejection by a life
insurance company of a life insurance application.
Decreasing Term: A form of Life Insurance
that provides a death benefit which declines throughout the term of the
contract, reaching zero at the end of the term.
Deductible: The amount you must pay from
your own pocket for each claim or accident before the company pays on a claim.
The more you pay for the deductible, the less it costs for your coverage.
Defensive Driver Course: These are classes
either offered through or approved by Departments of Motor Vehicles to enhance
driving skills. These courses may make drivers eligible for discounts on their
premiums. Courses taken for traffic school because of a moving violation are not
eligible.
Deferred Premium: The unpaid and yet undue
premiums on Life Insurance, paid on other than an annual premium basis.
Deferred Vesting: That form of vesting
under which rights to vested benefits are acquired by a participant commencing
upon a fulfillment of specified requirements, usually, reaching a certain age or
number of years of service or membership.
Deficiency Reserve: A supplemental reserve
that Life insurers are required to show in their balance sheet if the gross
premium charged on a class of insureds is less than the net level premium
reserve or modified reserve.
Delay Clause: A contract provision
permitting the insurer to defer granting a loan on the sole security of the
policy for any other purpose than that of paying premiums on the policy for a
stated interval of time, usually six months.
Delayed Payment Clause: In Life Insurance,
this is a clause which defers payment to the beneficiary for a specified period
of time after the death of the insured with proceeds to be paid to contingent
beneficiaries or the estate if the primary beneficiary does not survive the
delay. It is used as one method of handling common-disaster situations, such as
the death of the insured and the death of the primary beneficiary occurring in
the same accident. The clause usually states that the beneficiary has to survive
the death of the insured by a certain period of time in order to collect.
Delivered Business: Contracts issued by an
insurer and delivered to an insured, but the policies are not yet paid for.
Delivery: The actual placing of a Life
Insurance policy in the hands of an insured.
Dependent Coverage: Insurance coverage on
the head of a family which is extended to his or her dependents, including only
the lawful spouse and unmarried children who are not yet employed on a full-time
basis. "Children" may be step, foster, and adopted, as well as
natural. Certain age restrictions on children usually apply.
Dependent Life Insurance: A life insurance
benefit which is part of a group life insurance contract which provides death
protection to the eligible dependents of a covered employee.
Deposit Administration: A group annuity
providing for the accumulation of contributions in an undivided fund out of
which annuities are purchased for each covered person in the group when he
retires.
Depreciation: The decrease in value of
your vehicle or its parts due to wear, tear, and age.
Disability Benefit: The benefit payable
under a Disability Income policy or a provision of some other policy, such as a
Life Insurance contract.
Disability Pension: A pension paid to a
disabled worker prior to the time of normal retirement.
Discount Fees for Service to Providers:
HMOs contract with health providers to provide services at discounted
rates.
Dividend Accumulation: One of the options
in a Life Insurance policy which allows the policyholder to leave any premium
dividends with the insurer to accumulate at compound interest.
Dividend Additions: An option whereby the
insured can leave dividends with the insurer, and each dividend is used to buy a
single premium life insurance policy for whatever amount it will purchase.
Dividend Option: Alternative ways in which
insureds under participating Life Insurance policies may elect to receive their
policyholder dividends.
Dividend: Money paid annually to a
policyholder as a partial return of the paid premium on participating insurance
to reflect a company's favorable operating experience. Dividends are not
guaranteed.
Double Indemnity: Payment of twice the
basic benefit in the event of loss resulting from specified causes or under
specified circumstances. For example, a Life Insurance contract may provide for
twice the basic benefit if death is due to accident. Accident policies may
provide double indemnity coverage for death due to an elevator accident.
Double Protection: A form of Life
Insurance combining Whole Life and an equivalent amount of Term, with the Term
expiring at a stated future date, usually at 65 years of age. For example, an
individual may purchase $50,000 worth of Life Insurance protection, $25,000 of
it being Term Insurance and the other $25,000 Whole Life. The provision would
state that the $25,000 of Term Insurance ceases when the insured reaches age
65.
Drive-Other-Car Endorsement: Optional
coverage that broadens the definition of a covered auto to include non-owned
vehicles the insured person operates.
Driver Education: State accredited
educational course that consist of at least 30 hours of professional classroom
instruction.
Driver Training: State accredited training
course that consists of at least six hours of behind-the-wheel professional
instruction.
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information contained within this personal injury site is of a general nature
and is not meant to be a restatement of any rules of law. Your
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relationship. You should hire an attorney to obtain legal
advice for your specific case.
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Glossary.
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