That part of the policy describing the named insured, address,
effective date, term of the policy, applicable coverages,
the amount of insurance and the premium.
Decreasing Term Life Insurance:
Term insurance, the face value of which decreases each year
over a stated period. Family income and mortgage cancellation
are common types of decreasing term insurance.
A provision in an insurance contract stating that the insurer
will pay that amount of any insured loss that is in excess
of a specified amount. The specified amount is the deductible.
Deductible Collision and Deductible Comprehensive Coverages:
Forms of collision or comprehensive auto insurance coverages
which specify that an insurance company will pay the damage
less a specified amount under the particular coverage. For
example: For $100 Deductible Collision Coverage, the company
would deduct $100 from the total damage under the collision
coverage and be liable for the amount in excess of $100. Rates
are reduced as the amount of the deductible is increased.
The conversion of insurance companies from mutual companies
owned by their policyholders into publicly-traded stock companies.
A decrease in the value of property due to age, wear and tear.
In insurance, reducing regulatory control over insurance rates
and forms. Commercial insurance for businesses of a certain
size has been deregulated in many states.
Diminution of Value:
The idea that a vehicle loses value after it has been damaged
in an accident and repaired.
Directors and Officers Liability
Coverage for directors and officers of firms or organizations
against liability claims arising out of alleged errors in
judgment, breaches of duty, and wrongful acts related to their
Direct Premiums Written:
Property/casualty premiums collected by the insurer from policyholders,
before reinsurance premiums are deducted. Insurers share some
direct premiums and the risk involved with their reinsurers.
Direct Sales/Direct Response:
Method of selling insurance directly to the insured through
an insurance company’s own employees, through the mail,
or via the Internet. This is in lieu of using captive or
An insurer whose distribution mechanism is either the direct
selling system or the exclusive agent system. (See Agent.)
In no-fault insurance states with the disability threshold,
it provides that a victim may not sue in tort unless he/she
has been disabled (defined differently in various state plans)
from an accident for a specific period of time.
(1) Policyholder Dividend—The return of part of the
premium paid for a policy issued on a participating basis
by an insurer. Any such dividend is dependent upon premiums
collected in excess of losses and expenses for the particular
class of business at the end of the policy period. (2) Stockholder
Dividend—A portion of the surplus paid to the stockholders
of a corporation.
In no-fault auto insurance states with the dollar threshold,
it prevents individuals from suing in tort to recover for
pain and suffering unless their medical expenses exceed a
certain dollar amount.
Domestic Insurance Company:
An insurance company organized or domiciled in a given state
is referred to in that state as a domestic carrier.
See Accidental Death Benefit (Life