Risk & Insurance Glossary - D

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N O P Q R S T U V W X Y Z

DAILY REPORT – A copy to those parts of an insurance contract applicable to a particular risk for insurer's head office or branch office, for interested agents or brokers, or for a stamping office.
DAMNIFY – To cause injury or loss.
DEAN SCHEDULE – A systematic method of determining fire hazards for the purpose of establishing fire insurance rates. Named for its originator, Alford Dean, Chief Engineer, New England Fire Rating Bureau. (See also ANALYTIC SYSTEM)
DEBRIS REMOVAL – A clause often added to a policy, or included in the policy form, under which the company assumes liability for the cost of removal of debris resulting from damage, by an insured peril, to the property covered.
DECLARATIONS – (1) A part of the insurance policy that contains information furnished by the insured. (2) Statements by the insured giving information about the risk insured on the basis of which the policy contract is issued and the premium determined.
DEDUCTIBLE CLAUSE – A clause in an insurance contract providing that the insurer will pay only that amount of any loss that is in excess of a specified amount (deductible).
DEFALCATION – Embezzlement.
DEFERRED PREMIUM PAYMENT PLAN – A plan providing for payment of premium in installments if the term of the policy is longer than one year.
DEMOLITION INSURANCE – Insurance covering further loss due to demolition of any part of an insured building not damaged by primary peril, if the demolition is required by law or ordinance. This insurance is usually in the form of an endorsement to the property coverage.
DEPOSIT PREMIUM – The premium deposit required by a company on forms of insurance subject to periodic premium adjustment or where the exact amount of risk cannot be determined until further developments.
DEPOSITORY BOND – A bond guaranteeing payment of funds to depositors in accordance with the terms of a deposit in a bank.
DEPRECIATION – Decrease in the value of property over a period of time due to wear and tear and obsolescence.
DEPRECIATION INSURANCE – Insurance under which there is payable in case of loss, the difference between the actual cash value of the loss to the property insured and the cost of replacing or rebuilding it in the size and of similar construction at the same location. (See also REPLACEMENT COST INSURANCE)
DIFFERENCE IN CONDITIONS INSURANCE (DIC) – A property policy supplementing the normal fire policies. Adds additional perils and is usually all risks subject to exclusions. Often used to provide earthquake or flood cover, but these are normally excluded. Does not cover standard fire and allied lines perils.
DIRECT LOSS – A loss of which the peril insured against is the proximate cause.
DIRECT WRITERS – Insurers who sell policies through salaried employees or exclusive agents rather than through independent agents or brokers.
DIRECTORS AND OFFICERS LIABILITY (D&O) – Liability that may be incurred by directors and officers of an organization due to acts which result in financial loss to corporate stockholders or outside persons. Such liabilities are not insured by conventional liability policies because such acts are not occurrences as defined and they do not result in bodily injury or injury to tangible property.
DISABILITY INSURANCE – Insurance that generally provides non–occupational weekly benefits payable to employees for accident or sickness not within the scope of workers' compensation laws.
DISAPPEARING DEDUCTIBLE – Sometimes used with fire policies. The deductible amount decreases as the loss increases. At a specified loss amount the deductible does not apply at all.
DISASTER RELIEF ACT OF 1974 – Federal legislation providing for subsidy in the event of a disaster and declared such by the President. Legislation contains insurance requirements after the first loss for each location.
DISCOVERY PERIOD – The period after termination of an insurance contract or bond, or after an occurrence of a loss, within which the loss must be discovered to be covered.
DISHONESTY, DISAPPEARANCE, AND DESTRUCTION INSURANCE – (See also COMPREHENSIVE DISHONESTY, DISAPPEARANCE, AND DESTRUCTION INSURANCE)
DISTRIBUTION CLAUSE – (See also PRO RATA DISTRIBUTION CLAUSE)
DIVIDED COVERAGE – A division of insurance between two or more companies that would ordinarily be covered by one insurance policy. Also, in burglary insurance, the same term is used to describe insurance written by one carrier specifying payments in different amounts according to the various types of property lost or damaged.
DIVIDENDS – Distribution of earnings. Mutual or participating companies distribute to policyholders, and stock companies distribute to stockholders.
DIVISIBLE CONTRACT CLAUSE – Provides that a violation of the conditions of the policy at one insured location will not void the policy at all locations.
DIVISION WALL – (See also FIRE WALL)
DOMESTIC COMPANY – An insurance company licensed and domiciled in a particular state is a domestic company in that state. An insurance company not domiciled in the state is a foreign or alien company. DOMESTIC COMPANY – An insurance company licensed and domiciled in a particular state is a domestic company in that state. An insurance company not domiciled in the state is a foreign or alien company.
DRAM SHOP – A legal term in the United States referring to a bar, tavern, liquor stores, or commercial establishments where alcoholic beverages are sold. Traditionally, it referred to a shop where spirits were sold by the dram, a small unit of liquid.
DRAM SHOP LIABILITY – Liability exposure of those associated with serving alcoholic beverages as provided by law. Also known as liquor law liability.
DWELLING PACKAGE POLICIES – A family of policies for owner–occupied or tenant occupied premises which combine, at substantial discount, various broad real and personal property coverages and comprehensive personal liability.
DYNAMO CLAUSE – (See also ELECTRICAL EXEMPTION CLAUSE)