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Benson Kearley IFG helps you understand...

The world of insurance can be quite hard to understand. We’re here to provide you with terms you can understand, give you advice and offer our help—all right at your fingertips.

Insurance Glossary

D

DAMAGE

Any material or bodily loss or harm.

DEATH BENEFIT

Amount stated in policy to be paid to a survivor upon proof of death of the insured.

DEBENTURE

A form of debt instrument that is not backed by any specific collateral.

DEBRIS REMOVAL

A provision in an insurance policy most commonly found in fire insurance, providing indemnification for the cost of removal of the debris after a loss.

DECK

Roofless platform, generally made of wood and equipped with a rail, adjoining a house, either overhanging or supported by pillars.

DECLARATIONS (DEC SHEET)

A term used in insurance for the portion of the contract which 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.

the types of coverage you have elected;

the limit for each coverage;

the cost for each coverage;

the specified vehicles covered by the policy;

the types of coverage for each vehicle covered by the policy; and

other information applicable to the policy.

DEDUCTIBLE

The amount of money that the policyholder must pay when a claim is paid by the insurance company.

DEFAULT RISK

The probability that an organization will not be able to make scheduled payments on its debt (i.e. Not pay as promised on a bond).

DEFERRED PROFIT SHARING PLAN

A profit sharing plan designed to provide benefits to the participants upon retirement. Benefits at retirement are based upon the sum total of the contributions made by the participants and the investment results of the money contributed. The plan must provide a predetermined formula for allocating contributions made to the plan participants.

DEFINED BENEFIT PLAN

A pension plan where the employer agrees to pay each employee a defined benefit (income) at retirement (i.e. 2% per year worked of the employee's average salary for the best five years). With this kind of plan, the exact amount of income that plan members receive at retirement is predetermined.

DEFINED CONTRIBUTION PLAN

A pension plan where the employer agrees to pay a defined contribution (i.e. 5% of each employee's salary or wages) into the pension plan for the employees. The actual retirement income can only be estimated prior to retirement.

DEGREE OF RESPONSABILITY

Driver's share of responsibility for an accident.

DEPENDENCIES

In civil law, constructions and installations that are accessory to a dwelling but separated from it by a completely free space, or connected to it only by a fence or electrical or other connection.

DEPRECIATION

Reduction in value of property through use, aging, deterioration and obsolescence.

DIRECT LOSS (OR DAMAGE)

A loss, which is a direct consequence of a particular peril. Fire damage to a refrigerator would be a direct loss. Spoiling of food in the refrigerator as a result of the fire damage would be an indirect loss.

DIRECT WRITER

An insurance company, which sells its policies through salaried employees (licensed agents) who represent it exclusively, rather than through independent local agents, who represent several insurance companies.

DISMEMBERMENT

Accidental loss of (or of the use of) a body part.

DIVERSIFICATION

Allocating investment money among several asset classes to avoid excessive exposure to one source of risk. Diversification may be among types of securities, companies, industries, or geographic locations.

DIVIDEND

A portion of the profit of a corporation that is left over from operations and is disbursed to its shareholders. The amount of the dividend is decided upon by the company's board of directors.

DOLLAR-COST AVERAGING

An investment strategy where assets are purchased at regular intervals for a constant dollar value (i.e. $200.00 per month) instead of a constant number of shares (i.e. 50 shares per month) reducing the average share cost by acquiring more shares at lower securities prices.

DRIVER'S LICENCE, DRIVER'S PERMIT

Official written authorization permitting the bearer to operate a motor vehicle.

DRIVING CLASS

A term used when rating automobile insurance. Driving class indicates age of the operator, and/or sex and/or vehicle use.

DRIVING RECORD

A driving record is given to each driver. The record is determined by the experience, prior accidents, traffic tickets (speeding) and driver training. The better the driving record, the lower the risk.

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