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Glossary

NOTE:  All definition are from the Insurance Bureau of Canada

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DEATH BENEFIT - An amount set out in the policy representing the amount that will be paid in the event of death. Also referred to as "principal sum."

DEBRIS REMOVAL - A provision in an insurance policy most commonly found in fire insurance providing indemnification for the cost of removal of the debris after a fire.

DECLARATION - Statement, signed by the insured, warranting that information given by him is true.

DECLARATIONS ("DEC" PAGE) - The portion of the insurance contract that contains information such as the name and address of the insured, the property insured and its location and description, the policy period, the amount of insurance coverage, applicable premiums, and any other information provided by the insured.

DEDUCTIBLE - An agreed specified sum to be deducted from the amount of loss and assumed by the insured.

DEDUCTIBLE CLAUSE - A clause defining the amount of loss for which insured is liable; defines insurer's and insured's contributions to cover losses.

DEFENDANT - The person allegedly responsible for a property loss or personal injury in a lawsuit.

DEPRECIATION - Reduction in value of property through use, ageing, deterioration and obsolescence.

DIRECT BILLING - A system for the collection of premiums whereby the insurance company "directly bills" the insured for the premium in lieu of the conventional collection of premiums by the agent or broker. The insurer sends a statement to the agent, usually monthly, recording the premiums collected directly, and credits the agent with the commission on those items.

DIRECT COMPENSATION - PROPERTY DAMAGE - Covers damage to - or loss of use of - an automobile or its contents, to the extent that the driver of another vehicle was at fault for the accident. It is called "direct compensation" because, even though someone else caused the damage, the insured person collects directly from his or her insurer instead of from the person who caused the accident.

DIRECT LOSS - Damage to or loss of the insured property itself. It does not include consequential loss or expenses incurred as an indirect result of the damage, such as the cost of renting replacement items while the originals are being repaired.

DISAPPEARING DEDUCTIBLE - A disappearing deductible is a dollar amount deducted from the amount of loss which is reduced as the loss increases and disappears entirely to provide full coverage when the loss reaches a certain specified figure. Deductible amounts vary from $500.00 to $5,000.00, and the limit at which the deductible disappears is usually between $5,000.00 and $25,000.00. Disappearing Deductible plans are principally associated with fire policies which thus qualify for reduced rates.

DISCLAIMER - A denial of liability for cause, e.g., to deny coverage under a policy on grounds that a statutory condition has been breached.

DISCLOSURE - Act of making known something known.

DRIVE OTHERS CARS CLAUSE - A provision in an automobile policy to protect the policyholder when he is driving cars other than the one described in the policy.

DRIVER TRAINING CREDIT - To encourage driver education courses at schools and colleges, many insurers grant premium rebates to applicants for private passenger automobile insurance who have successfully completed an approved training program.

DUTY OF CARE - The obligation that a person has to exercise reasonable care with respect to the interests of others, including protecting them from harm.

DWELLING - The living quarters occupied, or intended for occupancy, by a household.

DWELLING COVERAGE - This applies to your home and "attached structures" such as a garage or carport. Permanently installed outdoor equipment on the premises, such as a swimming pool and the equipment attached to it, is usually included. Building materials for use in construction, alteration or repair of the insured dwelling or related structures on the premises are usually covered, too, if they are on the site or adjacent to it. Theft and vandalism losses during construction are usually not covered.

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