Insurance and risk management terminology · MLC-0106

Insurance and risk management terms: D (193)

• "D" ratioThe discount ratio used in workers' compensation experience rating, a factor applied to an employer's...
• Daily reports (DR)Summaries prepared by insurance agents or brokers detailing the new policies written, endorsements added, or...
• Damage to premises rented to youA coverage extension found in commercial general liability (CGL) policies that provides protection for...
• Damage to Rented Premises Liability Coverage-Garages endorsementAn addition to a garage liability policy that extends coverage for property damage to premises rented to the...
• DamagesMonetary compensation awarded to a party who has suffered loss or injury due to the wrongful act of another...
• "Damages reduction" provisionAn underinsured motorists provision under which the insurer deducts the amount the at-fault driver's...
• Data breach notification lawsLegislation requiring organizations to inform individuals whose personal information has been compromised in...
• Data processing coverageAn insurance policy or endorsement designed to protect against financial losses arising from damage to or...
• Data processors errors and omissions coverageInsurance protection for entities that process data for others, covering financial losses arising from...
• Date of constructionThe date that the building permit was issued, provided the actual start of construction, repair...
• Date of issueThe calendar date on which the insurer actually issues a policy, which falls after the application date and...
• DeadheadingThe operation of an empty vehicle, such as a truck or taxi, to or from a location where it will pick up or...
• Dealers driveaway collisionCoverage for physical damage to vehicles being transported under their own power from one location to another...
• Dealers open lotA specialized property insurance coverage designed for automobile dealerships to protect their inventory of...
• Death on the High Seas Act (DOHSA)A federal statute that provides a cause of action for wrongful death occurring on the high seas, beyond three...
• Death rateA statistical measure representing the number of deaths within a specific population over a defined period...
• Debit agentAn insurance agent who collects premiums directly from policyholders, often weekly or monthly, at their homes...
• Debit life insuranceA type of industrial life insurance characterized by small face amounts, frequent premium payments (often...
• Debit systemA method of collecting insurance premiums, primarily for industrial life insurance, where an agent regularly...
• Debris removalAn additional coverage or endorsement in property insurance policies that pays for the cost of removing the...
• Decennial liabilityA legal principle, particularly in civil law jurisdictions, that holds contractors, architects, and engineers...
• Declarations (DEC)The section of an insurance policy that contains specific information about the insured, the property or risk...
• Declarations pageA computer-generated summary of information provided by the prospective policyholder in the application for...
• Declaratory judgmentA court's authoritative statement that clarifies the legal rights and obligations of parties in a dispute...
• DeclinationThe formal refusal by an insurance company to issue a policy to an applicant. An underwriter makes this...
• DeductibleThe fixed amount of an insured loss that is the responsibility of the insured and that is incurred before any...
• Deductible (DED), see Deductible
• Deductible planA health insurance arrangement where the insured pays a specified amount of out-of-pocket expenses for...
• Deductible reduction incentive provisionsPolicy features that offer a reduction in the deductible amount if the insured meets certain conditions, such...
• Deemer periodThe statutory period during which a state insurance regulator reviews a filed rate or policy form. If the...
• DeemersProvisions in state rate and form filing laws under which a filing is treated as approved when the regulator...
• Deep linkingThe practice of creating a hyperlink that directs users to a specific page within a website, rather than to...
• DefamationThe act of making false statements about another person or entity that harms their reputation. In insurance...
• DefaultA failure to meet the terms of a contract, especially a financial obligation such as a loan repayment or bond...
• Default insuranceA form of insurance that protects a lender against losses resulting from a borrower's failure to repay a...
• DefeasanceA provision in a contract or bond that renders it null and void upon the fulfillment of certain conditions...
• DefendantThe party against whom a lawsuit is brought in a court of law. In insurance, the insured often becomes the...
• Defense Base ActA federal law extending the provisions of the Longshore and Harbor Workers' Compensation Act to employees...
• Defense clauseA provision within an insurance policy outlining the insurer's duty to defend the insured against lawsuits...
• Defense costs endorsementsPolicy modifications that alter how legal defense expenses are handled under a liability insurance policy...
• Defense within limitsA provision in a liability insurance policy where the costs of defending a claim, such as legal fees and...
• Defense-only coverageAn insurance policy provision or type of coverage that pays for legal defense costs incurred by the insured...
• Deferred acquisition cost (DAC)An accounting asset representing the capitalized expenses incurred by an insurance company in obtaining new...
• Deferred compensation planAn arrangement where an employer agrees to pay a portion of an employee's earnings at a future date, such as...
• Deferred group annuityA type of annuity contract purchased by an employer to provide future retirement benefits for a group of...
• Deferred payment merchandiseA class of inland marine coverage for merchandise a seller has delivered to buyers under installment or...
• Deferred premiumsInsurance premiums that are due but not yet collected by the insurer at the end of an accounting period...
• Deferred tax assetAn asset on a company's balance sheet that arises when taxes paid or payable in the current period are higher...
• Deficit carry-forward or carry-backA reinsurance treaty feature that transfers a deficit or loss from one accounting period to the next, under...
• Defined benefit planA type of retirement plan where an employer promises a specified monthly benefit to an employee upon...
• Defined contribution planA retirement plan where contributions are made by the employee, the employer, or both, into individual...
• Delay clauseA clause in a marine cargo insurance policy under which the insurer is not liable for loss, damage, or...
• Delay provisionA clause in an insurance policy, particularly in life insurance or annuity contracts, that grants the insurer...
• Delayed completion coverageInsurance designed to protect a project owner or developer against financial losses resulting from delays in...
• DeliveryThe formal act of transferring an insurance policy document from the insurer to the policyholder, which...
• Demand surgeThe sudden increase in the cost of labor and materials for repairs and reconstruction in a specific...
• Demand trigger coverageA type of claims-made insurance policy where coverage is activated when a demand for monetary damages is...
• DemurrageA charge payable to the owner of a chartered ship or freight car for delays in loading or unloading beyond...
• DemurrerA legal pleading in a lawsuit that admits the facts as stated by the opposing party but argues that those...
• DemutualizationThe process by which a mutual insurance company, owned by its policyholders, converts into a stock insurance...
• Denial of service attack (DoS), (DDOS)A malicious cyberattack that aims to make a computer system, network resource, or website unavailable to its...
• Denial of tenure claimsLegal actions brought against an educational institution by a faculty member who has been refused permanent...
• Denominational responsibilityThe legal and moral obligation of a religious denomination for the actions of its affiliated churches...
• Dental indemnity planA type of dental insurance plan that offers policyholders the freedom to choose any licensed dentist for...
• Dental insuranceA form of health insurance designed to cover the costs associated with dental care, including preventive...
• Department of Labor (DOL)The cabinet-level department of the U.S. federal government responsible for administering and enforcing...
• Department of Transportation (DOT)A federal executive department in the United States responsible for planning and coordinating federal...
• Dependent properties time element coverageInsurance that covers a business's loss of income or extra expenses resulting from damage to property of a...
• Deposit accountingAn accounting method used for certain insurance contracts, particularly those that primarily transfer...
• Deposit administration plan (DAP)A type of group annuity contract used by employers to fund pension plans, where contributions are accumulated...
• Deposit premiumAn initial premium payment required at the beginning of an insurance policy period, especially for policies...
• DepositionA formal, out-of-court sworn testimony given by a witness or party in a legal proceeding, such as an...
• DepreciationThe reduction in value of property over time due to wear and tear, obsolescence, or age. In insurance...
• DeprivationA peril in political risk insurance: the loss of an insured's ownership, use, or control of an asset or...
• DerechoA widespread, long-lived, straight-line windstorm associated with a fast-moving band of severe thunderstorms...
• DerivativeA financial contract whose value is derived from an underlying asset, index, or interest rate. These...
• Derivative contractA financial agreement between two or more parties whose value is contingent upon an underlying asset, such as...
• Derivative investigation coverageInsurance coverage that responds to the costs incurred by an organization when investigating a derivative...
• Derivative lawsuitsLegal actions brought by shareholders on behalf of a corporation against its directors, officers, or other...
• Described locationThe location where the insured building or personal property is found. The described location is shown on the...
• Design build-professional liability insuranceInsurance coverage for firms that provide both design and construction services under a single contract. This...
• Design liabilityThe legal responsibility of professionals, such as architects or engineers, for damages or losses arising...
• Designated construction project general aggregate limit endorsementAn addition to a commercial general liability policy that modifies the general aggregate limit to apply...
• Designated contractorThe independent contractor named in an owners and contractors protective liability policy, whose work for the...
• Designated employeesEmployees identified in a policy schedule, by name or by job title, so that a coverage provision applies to...
• Designated insured endorsementAn endorsement that specifically names an individual or entity as an insured under a policy, granting them...
• Designated operations exclusion endorsementAn endorsement attached to a liability policy that specifically removes coverage for claims arising from...
• Designated pollutantA pollutant named in a schedule on a liability policy endorsement, as in ISO form CG 04 30, which restores...
• Designated workplaces exclusion endorsementA workers compensation endorsement, form WC 00 03 02, that removes coverage for injuries to employees at the...
• Destroyed medical wasteMedical waste that has been shredded, ground, melted, or otherwise physically broken up until it can no...
• Destruction and removal efficiency (DRE)A percentage that measures the effectiveness of a hazardous waste combustion device, such as an incinerator...
• DevelopmentAny man-made change to improved or unimproved real estate, including but not limited to buildings or other...
• Development factorA multiplier applied to the current valuation of incurred insurance claims to project their ultimate cost at...
• DeviationA departure from the standard or expected terms, rates, or rules of an insurance policy or rating plan...
• Diagram numberAny of the numbers used in the instructions to the NFIP Elevation Certificate to identify the diagrams of the...
• Difference-in-conditions insurance (DIC)A specialized property insurance policy designed to fill gaps in coverage left by standard property forms. It...
• Difference-in-limits clause (DIL)A clause in a master or global policy under which the insurer pays the amount by which the master policy's...
• Difference-in-limits policy (DIL)An insurance policy that provides additional coverage limits above a primary policy, specifically addressing...
• Digital assetsIntangible assets that exist in digital form and are stored electronically, such as cryptocurrencies...
• Digital flood insurance rate map (DFIRM)An official map produced by the Federal Emergency Management Agency (FEMA) that depicts the flood hazards for...
• Digital insurerAn insurance company that conducts its core operations, from quoting and underwriting to claims processing...
• Diminution in value (auto)The reduction in a vehicle's market value after it has been damaged in an accident and subsequently repaired...
• Diminution in value (property)A reduction in the market price of property after it has been damaged and then repaired. This perceived loss...
• Direct actionA legal right that allows an injured party to sue an insurer directly, without first obtaining a judgment...
• Direct damagePhysical harm to insured property that is an immediate and direct result of a covered peril. This type of...
• Direct damage coverageThe portion of an insurance policy that provides financial protection for physical damage directly inflicted...
• Direct dischargerAn entity that releases pollutants directly into a body of water, such as a river, lake, or ocean, without...
• Direct filtrationA water treatment process that removes particulate matter and microorganisms by passing coagulated water...
• Direct lossA financial loss that results immediately and directly from a covered peril, involving the physical damage or...
• Direct marketAn insurance distribution channel where insurers sell policies directly to consumers without using...
• Direct physical loss by or from floodLoss or damage to insured property, directly caused by a flood. There must be evidence of physical changes to...
• Direct premiumsThe total amount of premiums an insurance company records for policies it has issued directly to...
• Direct response marketingA marketing strategy in insurance that aims to elicit an immediate response from potential customers, such as...
• Direct selling systemAn insurance distribution model where policies are sold directly to consumers by the insurer's employees or...
• Direct threatA high probability of substantial harm to the health or safety of an individual or others in the workplace...
• Direct writerAn insurance agent or company that sells policies directly to the public without using independent agents or...
• Direct writing captiveA type of captive insurance company that directly insures the risks of its owner or affiliated entities...
• Direct writing carrierAn insurance company that sells its policies directly to consumers without using independent agents or...
• Direct written premiumThe total amount of premium an insurance company collects from policyholders before any deductions for...
• Directive on data protectionThe European Union's Data Protection Directive, Directive 95/46/EC of 1995, which required member states to...
• Directors and officers (D&O) liability insuranceInsurance that protects corporate directors and officers against claims alleging wrongful acts committed in...
• Dirty bombA speculative radiological dispersal device (RDD) that combines conventional explosives with radioactive...
• DisabilityA physical or mental condition that limits a person's ability to perform daily activities or work. In...
• Disability benefitA periodic payment from an insurance policy, employer plan, or government program to an individual who is...
• Disability buyout insuranceA specialized insurance policy that provides funds to a business to purchase a disabled owner's or partner's...
• Disappearing deductibleA policy feature where the deductible amount decreases or is eliminated entirely as the covered loss...
• Disaster insurance gapThe difference between the total economic losses caused by natural disasters and the portion of those losses...
• Disaster recovery planA documented process or set of procedures to restore an organization's operations after a disruptive event...
• Disciplinary proceeding expense coverageInsurance coverage that pays for legal fees and other expenses incurred by a professional in defending...
• DisclaimerA statement that limits or disavows legal liability for certain actions, omissions, or statements. In...
• Disclosure dollar loss (DDL)A measure used in securities class action analysis of the market value a defendant company lost after its...
• DiscontinuanceAn insurer's decision to stop offering a class of health insurance policies and end coverage for everyone...
• Discount rateThe interest rate used to calculate the present value of future cash flows. In insurance, actuaries use...
• Discounted cash flow analysis (DCF)A valuation method that estimates the value of an investment based on its expected future cash flows...
• DiscoveryThe pre-trial phase in a legal proceeding where each party can obtain evidence from the opposing party...
• Discovery coverCoverage that lets an insured report claims first made after a claims-made policy has ended, provided they...
• Discovery periodA specified time after a claims-made policy has expired during which the insured can report claims for...
• Discovery provisionA provision in a claims-made policy that lets the insured give notice during the policy period of facts or...
• Discovery ruleA legal principle that postpones the running of a statute of limitations until the injured party discovers...
• DiscriminationThe unfair treatment of an individual or group based on characteristics such as race, gender, age, religion...
• Disease loadingAn additional charge applied to workers' compensation insurance premiums to account for the increased risk of...
• Disintermediation riskThe risk that policyholders will withdraw funds from an insurance product, particularly annuities or life...
• DismembermentThe accidental loss of a limb or other specified body part, or the loss of sight, hearing, or speech. This...
• DismissalThe termination of an employment contract by the employer, which can be with or without cause. Wrongful...
• Disparagement of goodsThe act of publishing false statements about another party's products, services, or property with the intent...
• Disparate impact discriminationA form of employment discrimination that occurs when a neutral employment policy or practice, applied equally...
• Disparate treatment discriminationA form of employment discrimination where an employer treats an individual differently based on their...
• DispersionThe degree to which data points in a set are spread out from the average or mean. In risk management...
• Distribution systemThe method or channels an insurance company uses to sell and deliver its products to policyholders. Common...
• DiversificationA risk management strategy that involves spreading investments or risks across a variety of assets...
• Diversification creditA calculated reduction in the total required economic or regulatory capital that reflects the benefit of...
• Divided risk endorsementA Texas workers compensation endorsement that divides an employer's operations into those the policy covers...
• Dividend accumulationAn option available to policyholders of participating life insurance policies, where policy dividends are...
• Dividend additionA dividend option in participating life insurance policies where dividends are used to purchase small...
• Dividend optionsChoices available to policyholders of participating life insurance policies regarding how to receive their...
• DividendsA portion of an insurer's surplus earnings returned to policyholders of participating insurance policies...
• Divisible contract clauseA provision in an insurance policy stating that if one part of the contract is found to be invalid or...
• Domestic insurerAn insurance company that is incorporated and licensed to do business in the same state where it is...
• Domestic surplus lines insurerAn insurance company that is domiciled and licensed in a particular state but writes surplus lines business...
• Domestic terrorismTerrorist activities carried out by individuals or groups inspired by or associated with U.S.-based...
• DomicileThe state or country where an insurance company is incorporated and maintains its principal place of...
• Domicile managerA professional or firm responsible for overseeing the administrative, regulatory, and operational aspects of...
• Domino theoryA concept in risk management suggesting that a single incident or failure can trigger a chain reaction of...
• Dose responseThe relationship between the magnitude of exposure to a chemical or physical agent and the extent of the...
• Dose-response assessmentThe process of characterizing the relationship between the dose of an agent administered or received and the...
• Dose-response relationshipThe correlation between the amount of a substance an individual is exposed to and the magnitude of the...
• Double excess coverageA basis on which outside directorship liability coverage responds for a director serving on another...
• Double indemnity (DI)A provision or rider in a life insurance or accidental death and dismemberment policy requiring the insurer...
• Double protectionA life insurance plan that pairs a whole life policy with an equal amount of level term insurance for a...
• Doublewide manufactured (mobile) homeA manufactured (mobile) home that, when assembled as a nonmovable, permanent building, is at least 16 feet...
• Downsizing exclusionA provision in an insurance policy, particularly in employment practices liability (EPL) insurance, that...
• Draft authorityThe power granted to an agent or third-party administrator by an insurer to issue claim payments directly, up...
• Dramshop liabilityThe legal responsibility of establishments that serve alcoholic beverages for injuries or damages caused by...
• Drilling mudA mixture of water or oil, clays, and chemical additives pumped down the drill string of a well and back to...
• Drilling rigThe integrated system of equipment used to drill a wellbore for oil, gas, or water extraction. It includes...
• Drive other car endorsement (DOC)An endorsement to a business auto policy that gives a named individual, usually an executive or key employee...
• Driver's Privacy Protection Act of 1994 (DPPA)A federal law that restricts the disclosure of personal information contained in state motor vehicle records...
• DroneAn uncrewed aerial vehicle (UAV) that can be remotely controlled or fly autonomously using pre-programmed...
• Drop down provisionA clause in an excess or umbrella liability policy that requires it to provide primary coverage when an...
• Dropped medical malpractice claimsMedical malpractice claims that are initiated but subsequently discontinued by the plaintiff before reaching...
• Druggist liability insuranceA specialized form of professional liability insurance that protects pharmacists and pharmacies against...
• Dry pipe sprinkler systemA type of fire sprinkler system where the pipes are filled with pressurized air or nitrogen instead of water...
• Dual agencyA situation in which an insurance agent represents both the insured and the insurer in the same transaction...
• Dual capacityA legal doctrine that allows an injured employee to sue their employer outside of the workers' compensation...
• Dual life stock insurance companyAn insurance company that is structured as a stock company but also issues participating life insurance...
• Due diligenceThe process of conducting a thorough investigation and evaluation of a potential business transaction...
• DuplicationThe existence of multiple insurance policies or coverages that protect against the same loss or peril for the...
• Duty to defendAn insurer's contractual obligation to provide legal representation and cover defense costs for an insured...
• Duty to payAn insurer's obligation, found in many directors and officers and other management liability policies, to pay...
• DwellingThe primary residential structure at the address listed on the policy declarations page, including any...
• Dwelling formSee Standard Flood Insurance Policy (SFIP) - Dwelling Form.
• Dwelling property coverage formsStandardized insurance policy forms designed to provide property coverage for residential structures that are...
• Dynamic financial analysis (DFA)A computer-based modeling approach used by insurers to project financial results under a wide variety of...
• Dynamic riskA type of risk that arises from changes in the economy, society, or technology, rather than from static or...

193 of 3,682 terms in Insurance and risk management terminology (MLC-0106). Request the full dataset.