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DBL See Disability Benefits Law.
Death Benefit The limit of insurance or the amount of benefit that will be paid in the event of the death of the covered person.
Death Spiral The potentially destructive cycle that may occur in an indemnity plan as a result of increased HMO penetration. The process can occur if indemnity plan rates continuously escalate because healthier and younger employees choose HMOs, leaving less healthy individuals in experience-rated indemnity plans. Employer contribution strategies and HMO pricing techniques may aggravate the problem.
Debris Removal Clause A property insurance provision which provides coverage for the cost of clean-up and debris removal after a covered cause of loss has occurred, such as clean up after a fire or windstorm.
Declaration 1) With respect to property and liability insurance, the portion of the insurance policy itself, used to detail the name and address of the insured, the locations covered, the policy period, limits of insurance, endorsements attached and premiums for coverage. Commercial policies also contain such items as the type of entity and type of operation of the insured. 2) A statement made to the company or to its agents by a policy holder, upon which the company may rely in undertaking the insurance.
Decreasing Term Life Insurance A life insurance policy in which the death benefit starts out at the full stated amount but which declines on a set scale throughout the life of the policy, reaching zero at the end of the policy term.
Deductible In a policy providing a deductible clause, the amount which must first be subtracted from the total damage incurred before determining the insurance company's liability. Of several types used, the straight deductible establishes the insurer's liability above the deductible but not below it; the franchise deductible establishes the insurer's liability for the entire amount of damage once the deductible amount is exceeded in a loss; and the disappearing deductible establishes the insurer's liability for an increasing portion of the loss, as the total damage rises above the deductible, until the deductible finally "disappears." Then the insurer is liable for the entire amount. The deductible may be in the form of an amount of dollars, a percent of the loss, a percent of the value of the insured property, or a period of time, as in health insurance.
Deductible The dollar amount an insured individual must pay for covered expenses during a calendar year before the plan begins paying co-insurance benefits.
Deductible Carryover Credit During the last three months of a calendar year, charges incurred for health services can be used to satisfy the deductible for the following calendar year. These credits may be applied whether or not the prior calendar year's deductible had been met.
Defense Clause A provision in commercial and personal liability insurance policies whereby the insurer has the right and duty to defend a lawsuit against the insured, even when those suits are considered false, groundless, or fraudulent.
Deferred Compensation Administrator This refers to a company that provides services under a deferred compensation plan. Services may include administration of self-insured plans, compensation planning, salary surveys, retirement planning, etc.
Delete A group Health Insurance contract that provides payment for certain enumerated dental services.
Dental Insurance A group Health Insurance contract that provides payment for certain enumerated dental services.
Department of Health and Human Services A federal department whose responsibility is primarily dealing with social service functions such as administration and supervision of the Medicare program.
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.
Dependents Usually the spouse and unmarried children (adopted, step or natural) of an employee.
Deposit Premium A tentative charge made at the beginning of certain policies and reinsurance agreements, to be adjusted when the actual earned charge has been later determined. Also known as initial premium.
Depositors Forgery Bond A bond where a person or corporation can insure against losses from forgery or alteration of outgoing negotiable instruments only, i.e., instruments drawn against the insured's account.
Depreciation The reduction in value of tangible property caused by physical deterioration or obsolescence.
Designated Mental Health Provider The organization hired by a health plan to provide mental health and substance abuse services.
Detoxification The process an individual goes through when withdrawing from alcohol. Usually is done under guidance of medical personnel.
Diagnosis The process of identifying a disease.
Diagnosis Related Groups (DRGs) A method of classifying inpatient hospital services. It is used as a method of determining financing to reimburse various providers for services performed.
Difference In Conditions Insurance (DIC) A property policy insuring "all risks" of physical loss or damage, excluding fire and extended coverage perils. Any cause of loss that would result in the property being left in a condition different from what it was prior to the occurrence of the loss event, except for those causes of loss specifically excluded. Such unnamed losses would include collapse, water damage, theft, and (optionally) flood and earthquake. Often, this coverage is provided on an inland marine basis.
Direct Damage Causes of loss that produce direct and straightforward property damage (without interruption in time or deviation in space) from the cause of the event to the damaged property.
Direct Loss Causes of loss that produce direct and straightforward property damage (without interruption in time or deviation in space) from the cause of the event to the damaged property.
Direct Writer A company which sells insurance to the public either through employees licensed as agents or through licensed agents, compensated on a commission basis, who represent only one company; but not through independent agents representing more than one company.
Directors and Officers Liability Insurance Protects officers and directors of a corporation against damages from claims resulting from negligent or wrongful acts in the course of their duties. Also covers the corporation (and even the officers and directors in some cases) for expenses incurred in defending lawsuits arising from alleged wrongful acts of officers or directors. These policies always require the insured to retain part of the risk uninsured.
Disability Inability to work due to personal injury or illness. Each policy may contain its own modified definition.
Disability Benefits Law A state law requiring an employer to provide disability benefits to covered employees for nonoccupational injuries, in contrast to Workers Compensation, which pays for occupational injuries. These laws are currently in effect in New York, New Jersey, Rhode Island, California, and Hawaii.
Disability Buy-Sell A disability income policy used to fund a disability buy-sell agreement whereby the business interest of a disabled stockholder following the elimination period. The policy's benefits may be paid in a lump sum or in installments.
Disability Income Insurance A form of health insurance that provides periodic payments to replace income, actually or presumptively lost, when the insured is unable to work as a result of sickness or injury.
Disability Insurance Training Council, Inc The educational arm of the International Association of Health Underwriters, the Health Insurance agents' professional society. It seeks to encourage agent educational projects by local Health associations, conducts university seminars in advanced Health underwriting areas, and conducts annual seminars for home office executives in sociological social insurance and demographic trends that may affect future application of policy forms and Health Insurance.
Disability, Long-Term See Long-Term Disability
Disability, Permanent Partial See Permanent Partial Disability.
Disability, Permanent Total See Permanent Total Disability.
Disability, Short-Term See Short-Term Disability.
Disability, Temporary Partial See Temporary Partial Disability.
Disability, Temporary Total See Temporary Total Disability.
Discharge Planning Determining what the patient's medical needs will be after discharge from a hospital or other inpatient treatment.
Discovery Period A period of time, after cancellation of an insurance contract or bond, during which the insured can discover whether there would have been a recoverable loss if the contract had remained in force. The period varies considerably and, in the case of certain bonds, could be indefinite by statutory requirements.
Discrimination The exercise of choices in selecting risks, as an essential function of any insurance system, when used in matching individual risks with the rates representing their chances of loss or their expenses. Often used erroneously to imply unfair discrimination, which is illegal.
Dismemberment Loss of and sometimes loss of use of, specified members of the body.
Dismemberment The loss of, or loss of use of, specified members of the body resulting from accidental bodily injury.
Dismemberment Benefit The benefits payable for various types of dismemberment. See also Accidental Death and Dismemberment and Multiple Indemnity.
Dividend An amount of money paid to the policyholders of a mutual insurer because of their ownership interest. A stock corporation may also pay a dividend to its policyholders if it writes participating insurance. In either event, the amount is payable on the basis of certain savings in losses or expenses realized by the insurer on that participating class of business.
Domestic Company An insurance company incorporated or organized under state law is a domestic insurer in that particular state.
Double Indemnity Twice the life insurance benefit, payable if death is caused by accident. Multiple indemnity is often available beyond that of double indemnity for death due to certain accidents.
Dread (or Specified) Disease Policy Coverage, usually with a high maximum limit, for all types of medical expenses arising out of diseases named in the contract. Common diseases covered are poliomyelitis, diphtheria, multiple sclerosis, spinal meningitis, and tetanus. Cancer is sometimes covered or may be added with some companies by a rider.
Drug Formulary A schedule of prescription drugs approved for use which will be covered by the plan and dispensed through participating pharmacies.

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