Insurance Terms

Damage - Loss or harm due to an injury to a person or property.

Damages - Money that one party becomes legally obligated to pay to another party because of a loss or harm to their person or property.

Declarations - The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.

Deductible - The portion of a claim you pay out-of-pocket before the insurance company pays. Choosing a higher deductible will lower your insurance premiums.

Defensive driver discount - Certain drivers (usually over age 50) who have voluntary taken a defensive driving course may qualify for this discount on their auto insurance premiums.

Depreciation -  The decrease in value of any property due to wear, tear, and/or time. Generally this is not an insurable loss.

Direct Check - Direct Check is GEICO's electronic payment method that lets you to pay your premium online with an electronic check.

Direct Pay - Direct Pay is GEICO's electronic payment method that lets you pay your premiums with automatic deductions from your checking account.

Discount - A reduction in your premium if you or your car meet certain conditions that reduce the insurer's losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seatbelts.

Driver training discount - A discount for people who have taken an approved driver training course. This discount is not available in all states or for all individuals.

Drive-in - A GEICO office staffed with GEICO employees where insured and claimants bring their vehicles for damage inspections and estimates.

DECLARATION - Part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums, and supplemental information. Referred to as the “dec page.”

DEDUCTIBLE - The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.

DEFERRED ANNUITY - An annuity contract that is purchased either with a single tax-deferred premium or with periodic tax-deferred premiums over time. Payments begin at a predetermined point in time, such as retirement.

DEFINED BENEFIT PLAN - A retirement plan under which pension benefits are fixed in advance by a formula based generally on years of service to the company multiplied by a specific percentage of wages, usually average earnings over that period or highest average earnings over the final years with the company.

DEFINED CONTRIBUTION PLAN - An employee benefit plan under which the employer sets up benefit accounts and contributions are made to it by the employer and by the employee. The employer usually matches the employee's contribution up to a stated limit.

DEMAND DEPOSIT - Customer assets that are held in a checking account. Funds can be readily withdrawn by check, “on demand.”

DEMUTUALIZATION - The conversion of insurance companies from mutual companies owned by their policyholders into publicly-traded stock companies.

Developed to Net Premiums Earned- The ratio of developed premiums through the year to net premiums earned. If premium growth was relatively steady, and the mix of business by line didn't materially change, this ratio measures whether or not a company's loss reserves are keeping pace with premium growth.

Development to Policyholder Surplus (IRIS) - The ratio measures reserve deficiency or redundancy in relation to policyholder surplus. This ratio reflects the degree to which year-end surplus was either overstated (+) or understated (-) in each of the past several years, if original reserves had been restated to reflect subsequent development through year end.

Direct Premiums Written - The aggregate amount of recorded originated premiums, other than reinsurance, written during the year, whether collected or not, at the close of the year, plus retrospective audit premium collections, after deducting all return premiums.

Direct Writer - An insurer whose distribution mechanism is either the direct selling system or the exclusive agency system.

Dividend - The return of part of the policy's premium for a policy issued on a participating basis by either a mutual or stock insurer. A portion of the surplus paid to the stockholders of a corporation.