Car Insurance Jargon

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

Declination - The rejection of an insurance application by an insurance company.

Default - When one insurance premium or a series of premiums are missed, the policyholder can be referred to as being in default.

Deposit premium - The premium deposit paid when an application is made for an insurance policy.

Direct debit - A procedure under which an organisation to whom a payment is due claims the amount directly from the bank account of its debtor. Many insurance companies will require premiums to be paid by direct debit.

Disclosure - The duty of any person applying for an insurance policy to tell the insurer all relevant information affecting the risk, such as prior claims history. It is also used to refer to the duty of an intermediary to inform his client if commission is being paid (and, if so, how much) in respect of the business being placed.

Double indemnity - Payment of twice the policy normal benefit for specific kinds of losses under certain conditions.