Glossary-D

Declaration: The section of an insurance policy listing essential information like the insured’s name, property details, coverage period, and premium—also called the “dec page.”

Deductible: The portion of a claim that the policyholder must pay out of pocket before the insurer pays the rest.

Deferred Annuity: An annuity contract where payments begin at a future date rather than immediately.

Defined Benefit Plan: A retirement plan that guarantees a specific benefit amount upon retirement, usually based on salary and years of service.

Defined Contribution Plan: A retirement plan where the employer and/or employee contribute to an individual account, with benefits based on the account’s performance.

Demand Deposit: Bank account funds (like checking accounts) that can be withdrawn at any time without notice.

Demutualization: The process of converting a mutual insurance company into a publicly traded stock company.

Depository Institution: A financial institution that accepts deposits, such as banks, credit unions, or savings associations.

Deregulation: The reduction or elimination of government rules and oversight in the insurance industry, especially in commercial lines.

Derivatives: Financial instruments whose value is based on an underlying asset, often used for hedging or speculation.

Difference in Conditions: A custom insurance policy designed to cover gaps not included in standard commercial property insurance.

Diminution of Value: The reduced resale value of a vehicle after it’s been damaged and repaired.

Direct Premiums: Premiums received by an insurer directly from policyholders before any reinsurance deductions.

Direct Sales/Direct Response: A method of selling insurance directly to consumers without using agents, via mail, online, or company representatives.

Direct Writers: Insurance companies that sell policies using their own employees or exclusive agents rather than independent brokers.

Directors and Officers (D&O) Liability Insurance: Coverage for a company’s executives against lawsuits alleging wrongful acts or mismanagement.

Dividends: Profits returned to policyholders, typically in participating policies, as a partial refund of premiums.

Domestic Insurance Company: An insurance company incorporated and regulated in the state where it is operating.

DISCLAIMER: The definitions provided in this glossary are intended to offer a general understanding of common insurance terms used within the industry. They may not apply in all states or to every insurance or financial product. This resource is for informational purposes only and does not constitute an insurance contract. Coverage terms, conditions, and exclusions vary—please consult your actual Parkway Insurance Group policy documents for complete details. In the event of any discrepancies between these definitions and your official policy, the policy provisions will take precedence. This content does not replace or fully explain the rights and obligations of policyholders, insurance agents, or insurance carriers. For questions about your specific coverage, please contact Parkway Insurance Group directly or refer to your policy language.
Glossary information has been adapted from trusted industry sources, including III.org (the Insurance Information Institute).