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Reference guide

Insurance Glossary

Plain-language definitions of common insurance terms across policies, coverage, and claims. Check your policy or plan documents for the terms that apply to you.

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Showing 24 of 36 matching terms

Terms beginning with D

Damage estimate

Claims
A calculation of expected repair or replacement costs used in evaluating a property claim.

Data breach response coverage

Business insurance
Coverage that may help pay qualifying costs to investigate, notify, and respond to a covered data breach.
Also called: privacy breach response

Date of loss

Claims
The date a covered event or damage is reported to have occurred.
Also called: loss date

Death benefit

Life insurance
The amount a life insurance policy may pay to beneficiaries after the insured person dies while coverage is in force.
Also called: life insurance payout

Death benefit option

Life insurance
The method a permanent life policy uses to determine its death benefit, such as a level amount or an amount including cash value.

Debris removal

Home insurance
Coverage that may help pay to remove debris after a covered property loss, subject to policy limits.

Declarations page

General insurance
A policy summary that commonly lists the insured, coverages, limits, deductibles, and policy dates.
Also called: dec page

Declared value

Auto insurance
A value stated for an insured vehicle or item that may be used for premium or settlement purposes under the policy terms.
Also called: stated value

Declared value policy

Auto insurance
A policy using a stated value for a vehicle or item, with claim payment determined under its specific valuation terms.

Deductible

General insurance
The amount a policyholder may pay toward a covered loss before insurance pays its share, subject to the policy.

Defense costs

Business insurance
Legal fees and related expenses incurred to defend an insured against a covered claim.
Also called: defense expenses

Deferred acquisition cost

Life insurance
An insurer accounting asset representing certain costs of obtaining insurance business that are recognized over time.

Deferred annuity

Life insurance
An annuity designed to begin income payments at a future date after an accumulation period.

Demutualization

Life insurance
The conversion of a mutual insurer owned by policyholders into a stock company owned by shareholders.

Denial letter

Claims
Written notice explaining that all or part of a claim is not covered and identifying the relevant basis.

Department of insurance

Claims
A state regulatory agency that licenses insurers and producers, enforces insurance rules, and handles consumer complaints.
Also called: DOI, insurance department

Dependent

Health insurance
A person who can be covered under another person’s health plan because of a qualifying family relationship or other plan rule.
Also called: covered dependent

Dependent coverage

Health insurance
Health coverage for eligible family members enrolled under a subscriber’s plan.

Deposit premium

General insurance
An estimated initial premium subject to adjustment when the insurer measures actual exposure after issuance.

Depreciation

Home insurance
A reduction in an item’s value over time because of age, wear, or obsolescence.
Actual cash value vs. replacement cost

Diagnostic test

Health insurance
A medical test used to help identify, confirm, or monitor a health condition.
Also called: diagnostic service

Diminishing deductible

Auto insurance
An auto policy feature that may reduce a deductible after qualifying claim-free periods.
Also called: vanishing deductible

Diminution in value

Auto insurance
A reduction in a vehicle’s market value after damage and repair, which may be covered only where policy terms or law require.
Also called: DV claim

Direct damage

General insurance
Physical loss or damage that results immediately from a covered cause of loss.