Glossary of Insurance Terms

Daily Benefit Period

The length of time which your daily benefits cover

Daily Benefit Rate

The rate predetermined by your policy provider to cover your daily benefits

Declination

The refusal of an insurer to issue a policy based on the review of the application for insurance and other relevant factors

Deductible

An out-of-pocket amount of money that the insured must pay before the insurance company assumes financial responsibility for the claimant's expenses

Demutualized

When shares of the company's stock are sold individually rather than part of a large portfolio consisting of several individual stocks, i.e. mutual fund

Deposit Premium

This is the initial premium paid by the prospective policyholder when the insurance application is filled out. This is generally equal to the first month's premium and is applied towards the first month's actual premium

Discount Rate

This rate is used to calculate the value of dollars paid or received in future years to current dollars. For example, a dollar today may only be worth 50 cents ten years from now.

Doctrine of Reasonable Expectations

A legal document that states policies must be written in such a way that a reasonable person who is not trained in the law may interpret them

Domestic Insurer

An insurance company that is operates in the state in which they are incorporated