- DA
- See Deposit Administration.
- Death Benefit
- The amount stated in a policy
contract as payable upon the death of the person whose life is being insured
(cesti que vie). See also Principal Sum.
- Death Rate
- See Mortality Rate.
- Debit
- (1)
The amount of premium charged or debited to an agent to be collected. (2) The
book of business represented by such premiums. (3) The territory where most of
the insureds are located. (4) The total number of individual or home service
insureds assigned to a given agent for collection of weekly or monthly premiums
and for servicing, commonly referred to as "people in my debit."
- Debit Agent
- An
agent who works on the debit system.
- Debit Life Insurance
- See Industrial Life
Insurance.
- Debit System
- The system of collecting insurance premiums weekly or
monthly by an agent.
- Decreasing Term
- A form of Life Insurance that provides a
death benefit which declines throughout the term of the contract, reaching zero
at the end of the term.
- Deferred Premium
- The unpaid and yet undue premiums on
Life Insurance, paid on other than an annual premium basis.
- Deferred Vesting
- That
form of vesting under which rights to vested benefits are acquired by a
participant commencing upon a fulfillment of specified requirements, usually,
reaching a certain age or number of years of service or membership. See also
Vesting.
- Deficiency Reserve
- A supplemental reserve that Life insurers are
required to show in their balance sheet if the gross premium charged on a class
of insureds is less than the net level premium reserve or modified reserve.
- Delay
Clause
- A contract provision permitting the insurer to defer granting a loan on
the sole security of the policy for any other purpose than that of paying
premiums on the policy for a stated interval of time, usually six months.
- Delayed
Payment Clause
- In Life Insurance, a clause deferring payment to the beneficiary
for a specified period after the death of the insured with proceeds to be paid
to contingent beneficiaries or the estate if the primary beneficiary does not
survive the delay. It is used as one method of handling common-disaster
situations, such as the death of the insured and the death of the primary
beneficiary occurring in the same accident. The clause usually states that the
beneficiary has to survive the death of the insured by a certain period of time
in order to collect.
- Delivered Business
- Contracts issued by an insurer and
delivered to an insured but not yet paid for. See also Examined Business, Paid
Business and Written Business.
- Delivery
- The actual placing of a Life Insurance
policy in the hands of an insured.
- 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.
- Dependent Life Insurance
- A life
insurance benefit which is part of a group life insurance contract which
provides death protection to the eligible dependents of a covered employee.
- Deposit
Administration (DA)
- A group annuity providing for the accumulation of
contributions in an undivided fund out of which annuities are purchased for
each covered person in the group when he retires.
- Disability Benefit
- The benefit
payable under a Disability Income policy or a provision of some other policy,
such as a Life Insurance contract.
- Disability Pension
- A pension paid to a
disabled worker prior to the time of normal retirement.
- Dividend Accumulation
- One
of the options in a Life Insurance policy which allows the policyholder to
leave any premium dividends with the insurer to accumulate at compound
interest.
- Dividend Additions
- An option whereby the insured can leave dividends
with the insurer, and each dividend is used to buy a single premium life
insurance policy for whatever amount it will purchase. Also called Paid-Up
Additions.
- Dividend Option
- Alternative ways in which insureds under
participating Life Insurance policies may elect to receive their policyholder
dividends.
- Double Indemnity
- Payment of twice the basic benefit in the event of
loss resulting from specified causes or under specified circumstances. For
example, a Life Insurance contract may provide for twice the basic benefit if
death is due to accident. Accident policies may provide double indemnity
coverage for death due to an elevator accident. See also Multiple Indemnity.
- Double
Protection
- A form of Life Insurance combining Whole Life and an equivalent
amount of Term, with the Term expiring at a stated future date, usually at 65
years of age. For example, an individual may purchase $50,000 worth of Life
Insurance protection, $25,000 of it being Term Insurance and the other $25,000
Whole Life. The provision would state that the $25,000 of Term Insurance ceases
when the insured reaches age 65.
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