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DECLARATIONS (DEC SHEET)
- A term used in insurance
for the portion of the contract which contains
information such as the name and address of the insured,
the property insured, its location and description, the
policy period, the amount of insurance coverage,
applicable premiums, and supplemental representations by
the insured.
- the types of coverage you have elected;
- the limit for each coverage;
- the cost for each coverage;
- the types of coverage for each location covered by the
policy; and
- other information applicable to the policy.
DEDUCTIBLE
- The portion of a loss that you
are required to pay before your insurance coverage will
respond. Deductibles can be used to reduce your physical
damage premiums. For example, if you owned a policy with
a $200 deductible and you suffered a covered loss
totaling $1,000, you would pay the first $200 and the
insurance company would pay the remaining $800. If the
loss were only $200, you would pay the entire amount and
the insurance company would pay nothing.
DEPRECIATION
- Decrease in the value of
property over a period of time due to use, wear, tear,
and obsolescence. For example, if you paid $500 for a
television set five years ago, its current value minus
depreciation might be only $125.
DIFFERENCE IN
CONDITIONS INSURANCE - A
policy insuring against losses not usually covered by
Fire and Business Interruption policies such as those
caused by flood, earthquake, landslide and other unusual
accidental occurrence. Applicable mostly to large
commercial and industrial organizations, and performs
much the same functions in property insurance that the
Umbrella Liability does for liability coverage.
DIRECT LOSS (OR
DAMAGE) - A loss, which is
a direct consequence of a particular peril. Fire damage
to a refrigerator would be a direct loss. Spoiling of
food in the refrigerator as a result of the fire damage
would be an indirect loss.
DIRECT WRITER
- An insurance company, which sells its policies through
salaried employees (licensed agents) who represent it
exclusively, rather than through independent local
agents, who represent several insurance companies.
DUAL OBLIGEE
- More than one obligee on a surety bond. It may be two
owners or an owner and a financial institution or an
owner and a municipality, etc. |
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