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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
D
Date of Issue:
The date printed on the policy that indicates when the policy was issued. This date may be different than the policy date, which is the date the policy went into effect.
Decreasing Term Insurance:
Term insurance by which the death benefit decreases annually but the premium remains level. This type of insurance is typically used to cover mortgages.
Deductible:
The designated amount the insured must pay after a loss before he/she is entitled to the benefits from the insurer.
Disability Income (DI) Rider (Waiver of Premium):
A rider that allows insurance premiums to be waived when the insured is disabled, typically for atleast six months.
Dividend:
The return of a portion of the premium to a policyowner by a participating mutual or stock insurer. Dividends paid to policyowners are not typically taxable since they are a return of premium and not considered a gain. These dividends may be: (1)taken as cash, (2)applied against the premium, (3)used to purchase more insurance coverage, (4)left on deposit with the insurance company to earn interest, or (5)used to purchase one year of term life insurance.
E
Effective Date (Policy Date):
The date the insurance policy is effective and in force.
Emergency Fund:
Money set aside for emergency expenses.
Evidence Clause:
A statement in the policy relating to the investigation of a claim and requiring the insured to cooperate fully in an investigation by providing any records and taking exams that would satisfy the adjuster and the validity of the claim.
Evidence of Insurability:
Health information such as a medical exam or an attending physician's statement required to satisfy underwriting requirements.
Exclusions:
A provision in the contract that does not provide coverage for certain perils. Common exclusions are catastrophic hazards for property and casualty policies. A common exclusion for life insurance policies is the aviation exclusion.
Expiry:
The date a term life policy terminates coverage.
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