DEALING:
Has the same meaning as stipulated in the Financial Services Reform Act 2001.
DEDUCTIBLE:
A policy condition whereby the Insured is required to pay a portion of the loss, as stipulated in the policy (eg, the first $400 of a motor vehicle damage claim); the Insurer paying the balance over that amount.
DEPOSIT PREMIUM:
Certain policies are written under conditions which provide that the final premium is not determined until the policy has expired. The premium charged at the inception of cover is the “advance”, “provisional” or “deposit” premium. The term is also sometimes used to refer to the initial premium paid by an applicant for life insurance which is held in suspense by the life company pending its acceptance or rejection of the proposal.
DIRECTORS’ AND OFFICERS’ LIABILITY / COMPANY REIMBURSEMENT:
Directors’ and Officers’
Covers Directors or Officers for their legal liability for wrongful acts committed whilst acting in their capacity as a Director or Officer.
Company Reimbursement
To reimburse the company for payments it is legally entitled or obliged to make in indemnifying Directors or Officers for claims made against them whilst acting in their capacity as Directors or Officers. It will not reimburse the company for claims made against the company.
DISABILITY:
Covers insured persons for permanent or temporary disablement as a result of accident or sickness, where such persons are unable to perform the major portion of their normal occupation – various covers such as Key Person, Salary Continuance etc are available.
DISCLOSURE:
Every matter that the Insured knows or could reasonably be expected to know that is relevant to the Insurer’s decision to accept the risk and if so on what terms.
DUAL BASIS PAYROLL:
This takes its name from the fact that indemnity is provided for payroll, ie wages and salaries, during two successive periods. The first is the initial selected period, eg 10 weeks beginning with the damage during which 100% of the rate of payroll is applied. After the initial period the cover continues throughout the remainder of the full selected indemnity period, but for a reduced proportion of the payroll. Cover is flexible as the initial period can be compressed or consolidated, depending upon the extent of a business interruption.