Glossary
Insurance Terms Glossary
This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.
The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.
Terms beginning with D
- Declarations
- – part of the insurance contract containing basic information about the insurance contract including: the policy number, policy period, name, address, the amount of insurance, details of covered property, etc.
- Deductible
- – amount of loss paid by the insured before insurance benefits are payable.
- Deferred Annuity
- – annuity where payment begins after a specified period or age.
- Deferred Premium
- – amounts that are due but have not yet been paid to the insurer.
- Deposit Premium
- – amount of initial payment requested by the insurer, on policies for which the actual premium is unknown at the start of coverage.
- Development
- – subsequent adjustment of previously established claims or loss estimates reported for prior periods. Can be either favorable (positive) or unfavorable (negative).
- Direct Premiums
- – the premium income for insurance sold by an insurance company (or group of affiliated companies) without the element of reinsurance.
- Directors And Officers Liability Insurance
- – coverage for directors and officers of a company protecting them from claims resulting from negligent or wrongful acts in their capacity as corporate directors and officers.
- Disability
- – physical or mental inability to perform either or all of one's occupational endeavors, as defined under the terms of the applicable insurance policy.
- Dividend
- – distribution to policyholders, of a proportion of the surplus earnings of a participating insurance company.
- Domicile
- – the state in which the company is incorporated and in which a company has its main office.
- Dread Disease Policy
- – coverage providing benefits upon diagnosis of a specifically designated disease.
- Dwelling Coverage
- – dwelling insurance provides coverage for a dwelling and its contents that includes less coverage than a homeowners policy. Typically purchased by landlords to cover damage to the building itself caused by fire, smoke, water damage, falling objects, or some other cause specifically noted in the policy.
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