D
Daily
- The document—now more commonly found in electronic than in paper form
— that provides insurer and agent with a quick reference to all pertinent
information relative to a contract of insurance: insured’s identification,
location, coverage, term, premium, and so on. Sometimes referred to
as a "daily report."
Data
processing insurance - Coverage for electronic media, computers,
and other electronic data processing equipment.
Deadheading
- A trucking term that means the driving of a tractor-trailer that is
empty, usually on the return trip from delivering goods. A special trucking
endorsement, Truckers Insurance for Non-Trucking Use, may be necessary
when deadheading.
Debris
removal clause - A consequential coverage commonly included in direct
loss policies. For example, fire policies provide limited recovery for
the insured’s cost of removing the debris after a covered fire. Not
to be confused with removal.
Declarations
page - That part of a property or liability insurance policy that
discloses information pertinent to the coverage promised including names,
addresses, limits, locations, term, premium, forms, and so on. The same
information, perhaps in a shorthand version, is contained as well in
the daily.
Deductible
- The part of the loss that is to be borne by the insured.
Demolition
insurance - When a building is damaged beyond a certain point, say
50% destroyed, local building codes may direct that the structure be
razed. Insurance to cover this exposure (and the lost value of the undamaged
but newly razed part) can and clearly should be arranged whenever it
exists. Increased cost of construction coverage to meet current building
codes should be provided as well.
Dependent
properties, see Business income, dependent properties.
Deposit
premium - When the price of insurance is tied to fluctuating values
or costs that cannot be known until the end of the policy period, inventory
or payroll are two common examples, a deposit or provisional premium
or estimated premium may be charged at the outset of a policy with final
adjustment to come at the end of the term.
Depositor’s
forgery insurance - Coverage against loss due to forged checks,
notes, etc. Limited coverage is automatically included in homeowners
contracts. Commercial establishments can purchase crime coverage with
this feature.
Depreciation
- As property ages and becomes worn it often loses value. That loss
of value must be taken into account in any adjustment of property insurance
that covers loss of actual cash value.
Difference
In Conditions (DIC) - Property insurance obtained through the excess
and surplus lines market to supplement and expand on the property coverage
available through admitted markets. DIC has been called the "property
umbrella" policy.
Direct
damage - Physical damage caused to property by a peril such as fire
or lightning.
Direct
loss - The immediate consequence of the action of an insured peril.
A fire-damaged structure is a "direct loss" by fire. In contrast,
see Consequential loss.
Direct
premiums - Premiums collected from policyholders before premiums
for reinsurance are paid.
Direct
writer - An insurer that sells coverage directly via its own employees.
Contrast with independent agent.
Directors
and officers liability insurance - A form of errors and omissions
insurance covering the directors and officers of corporations against
suits alleging they committed wrongful act(s).
Discovery
period - The period of time, commonly one year, after the termination
of a surety bond during which covered loss may be discovered, reported,
and covered.
Dishonesty,
Disappearance, and Destruction ("3-D") policy - The name
once applied to a form used for comprehensive crime coverage. Now known
as ISO Form C.
Dram
shop laws - State laws pertaining to selling and serving alcoholic
beverages and the public liability these activities may entail. Also
called alcoholic beverage control (ABC) laws.
Dram
shop liability insurance, see Liquor liability insurance.
Drive
Other Car (DOC) endorsement - A business auto or garage policy endorsement
providing coverage for named individuals while driving nonowned autos
in situations unrelated to the business of the insured.
Druggists
liability insurance - A form of professional liability insurance
for druggists.
Duty
to defend - Part of the insuring agreement of many policies. The
insurer has the duty to defend the insured in event of a covered loss.
Dwelling
forms - Forms for coverage of dwellings and personal property that
are not eligible for homeowners coverage. Tenant occupied rental properties
are commonly insured under these forms.
