Dictionary

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Death Benefit

The policy proceeds to be paid upon the death of the insured. On Life insurance, proceeds are not taxable, but may be included in the value of the insured’s estate for estate tax purposes.

Debris Removal

A coverage provided in many Property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a Peril insured against.

Declarations Page (Dec Sheet)

A portion of the insurance contract that contains information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the insured.

Decreasing Term Insurance

Term insurance whose amount of coverage starts out at the full amount, then gradually decreases until the expiration date of the policy. Generally, the cheapest type of Life insurance, but it has no cash value and cannot be renewed. Often used as Mortgage Protection insurance.

Deductible

Usually, a dollar amount or percentage the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits.

Deferred Annuity

An Annuity on which payments to the annuitant are delayed until a specified future date. May be purchased with a single premium (a SPDA) or with flexible premiums. Interest earned during the “accumulation” (or pay in) period is tax deferred until withdrawal, when amounts above the annuitant’s invested capital (or cost basis) are taxed as ordinary income.

Depreciation

Decrease in the value of property over a period of time due to use, wear and tear, and obsolescence.

Direct Loss

Loss that is a direct result of a Peril, such as fire.

Direct Writer

An insurance company that sells its policies through licensed agents who represent the insurer exclusively, rather than through independent local agents, who represent several insurance companies. Direct writing producers are also called “Exclusive” or “captive” producers.

Disability Income Insurance

A form of Health insurance that provides periodic payments to replace income, when the insured is unable to work as a result of sickness or injury. May be either individual or group coverage and is usually subject to a “waiting” or “elimination” period. In order to receive benefits, the insured must meet the definition of total disability in the policy, which varies by company.