Definition and meaning of DIVIDEND ACCUMULATIONS OPTION :

DIVIDEND ACCUMULATIONS OPTION*: See Accumulation at interest option.

(Source: Insurance Information Institute )

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Definition and meaning of DIVIDEND :

DIVIDEND: Money returned to policyholders from an insurance companyÕs earnings. Considered a partial premium refund rather than a taxable distribution, reflecting the difference between the premium charged and actual losses. Many life insurance policies and some property/casualty policies pay dividends to their owners. Life insurance policies that pay dividends are called participating policies.

(Source: Insurance Information Institute )

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Definition and meaning of DISABILITY INCOME INSURANCE :

DISABILITY INCOME INSURANCE*: A type of health insurance designed to compensate an insured person for a portion of the income lost because of a disabling injury or illness. Benefit payments are made either weekly or monthly for a specified period during the continuance of an insuredÕs disability. (See income protection insurance)

(Source: Insurance Information Institute )

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Definition and meaning of DIRECTORS AND OFFICERS LIABILITY INSURANCE/D&O :

DIRECTORS AND OFFICERS LIABILITY INSURANCE/D&O: Directors and officers liability insurance (D&O) covers directors and officers of a company for negligent acts or omissions and for misleading statements that result in suits against the company. There are a variety of D&O coverages. Corporate reimbursement coverage indemnifies directors and officers of the organization. Side-A coverage provides D&O coverage for personal liability when directors and officers are not indemnified by the firm. Entity coverage, for claims made specifically against the company, is also available. D&O policies may be broadened to include coverage for employment practices liability.

(Source: Insurance Information Institute )

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Definition and meaning of DIMINUTION OF VALUE :

DIMINUTION OF VALUE: The idea that a vehicle loses value after it has been damaged in an accident and repaired.

(Source: Insurance Information Institute )

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Definition and meaning of DIRECT PREMIUMS :

DIRECT PREMIUMS: 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.

(Source: Insurance Information Institute )

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Definition and meaning of DIRECT SALES/ DIRECT RESPONSE :

DIRECT SALES/ DIRECT RESPONSE: Method of selling insurance directly to the insured through an insurance companyÕs own employees, through the mail, by telephone or via the Internet. This is in lieu of using captive or exclusive agents.

(Source: Insurance Information Institute )

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Definition and meaning of DIRECT WRITERS :

DIRECT WRITERS: Insurance companies that sell directly to the public using exclusive agents or their own employees, through the mail, by telephone or via the Internet. Large insurers, whether predominately direct writers or agency companies, are increasingly using many different channels to sell insurance. In reinsurance, denotes reinsurers that deal directly with the insurance companies they reinsure without using a broker.

(Source: Insurance Information Institute )

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Definition and meaning of DISABILITY :

DISABILITY*: In disability insurance, the inability of an insured person to work due to an injury or sickness. Each disability policy has a definition of disability that must be satisfied in order for the insured to receive the policyÕs benefits. (See Residual disability; Total disability)

(Source: Insurance Information Institute )

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Definition and meaning of CREDIT RATING :

CREDIT RATING: See Bond rating

(Source: Insurance Information Institute )

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Definition and meaning of CONTINGENT BENEFICIARY :

CONTINGENT BENEFICIARY*: The party designated to receive the proceeds of a life insurance policy following the insuredÕs death if the primary beneficiary predeceased the insured. Also known as secondary beneficiary and successor beneficiary. (See Primary beneficiary)

(Source: Insurance Information Institute )

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Definition and meaning of CONTESTABLE PERIOD :

CONTESTABLE PERIOD*: The time during which an insurer has the right to cancel or rescind an insurance policy if the application contained a material misrepresentation. (See Incontestability provision)

(Source: Insurance Information Institute )

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Definition and meaning of CONTINGENT LIABILITY :

CONTINGENT LIABILITY: Liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible.

(Source: Insurance Information Institute )

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Definition and meaning of CONVERTIBLE TERM INSURANCE POLICY :

CONVERTIBLE TERM INSURANCE POLICY*: A term life insurance policy that gives the policy owner the right to convert the policy to a permanent plan of insurance.

(Source: Insurance Information Institute )

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Definition and meaning of COVERAGE :

COVERAGE: Synonym for insurance.

(Source: Insurance Information Institute )

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Definition and meaning of COMPULSORY AUTO INSURANCE :

COMPULSORY AUTO INSURANCE: The minimum amount of auto liability insurance that meets a state law. Financial responsibility laws in every state require all automobile drivers to show proof, after an accident, of their ability to pay damages up to the state minimum. In compulsory liability states this proof, which is usually in the form of an insurance policy, is required before you can legally drive a car.

(Source: Insurance Information Institute )

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Definition and meaning of COMPREHENSIVE COVERAGE :

COMPREHENSIVE COVERAGE: Portion of an auto insurance policy that covers damage to the policyholderÕs car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods and riots), and theft.

(Source: Insurance Information Institute )

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Definition and meaning of COMPETITIVE REPLACEMENT PARTS :

COMPETITIVE REPLACEMENT PARTS: See Crash parts; Generic auto parts

(Source: Insurance Information Institute )

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Definition and meaning of COMMUTATIVE CONTRACT :

COMMUTATIVE CONTRACT*: An agreement under which the contracting parties specify the values that they will exchange; moreover, the parties generally exchange items or services that they think are of relatively equal value. Contrast with aleatory contract.

(Source: Insurance Information Institute )

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Definition and meaning of COMPETITIVE STATE FUND :

COMPETITIVE STATE FUND: A facility established by a state to sell workers compensation in competition with private insurers.

(Source: Insurance Information Institute )

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Definition and meaning of COMPLAINT RATIO :

COMPLAINT RATIO: A measure used by some state insurance departments to track consumer complaints against insurance companies. Generally, it is stated as the number of complaints upheld against an insurance company, as a percentage of premiums written. In some states, complaints from medical providers over the promptness of payments may also be included.

(Source: Insurance Information Institute )

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Definition and meaning of COMPLETED OPERATIONS COVERAGE :

COMPLETED OPERATIONS COVERAGE: Pays for bodily injury or property damage caused by a completed project or job. Protects a business that sells a service against liability claims.

(Source: Insurance Information Institute )

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