Glossary

Direct loss is incurred due to direct damage to property, as opposed to time element or other indirect losses.

The direct market refers to reinsurers that deal with the cedent through their account executives rather than through intermediaries.

Direct premiums refer to the gross premium income for coverage under policies issued by the captive.

Direct procurement refers to the purchase of insurance by an insured directly from an insurer, rather than accessing coverage through a broker. This procedure is commonly used by large commercial buyers of insurance that reside in states or countries that permit insureds to purchase nonadmitted insurance.

A direct response marketing system, unlike other marketing systems, does not involve the sale of insurance through local agents. Instead, the insurer's employees work directly with applicants via telephone, email, and the Internet.

A direct selling system markets and sells insurance polices by the insurer's employees rather than independent agents.

Direct threat, as defined in the Americans with Disabilities Act (ADA) of 1990, is a significant risk of substantial harm to the health or safety of the individual or others that cannot be eliminated or reduced by reasonable accommodation. The intent of the ADA is to provide economic opportunities for disabled persons. No individual should be placed in a job that creates safety risks for the individual or the individual's coworkers.

A direct writer is an insurance company that employs its own sales force rather than using independent agents or brokers.

A direct writing captive is a captive that issues policies of insurance to its insureds.

A direct writing carrier is an insurance company that sells insurance directly to its policyholders rather than using independent agents or brokers.