Glossary

The direct written premium is the total amount of an insurer's written premiums without any allowance for premiums ceded to reinsurers.

A dirty bomb utilizes conventional explosive materials, such as TNT or dynamite, to disperse radioactive material over a wide area, thereby contaminating the area. This is in contrast to a nuclear weapon, which relies on a nuclear-fission reaction to generate an extremely powerful explosive blast (although the term was originally coined for nuclear weapons that caused excessive contamination). The destructiveness of a dirty bomb would depend primarily upon the force of the conventional explosion. However, the resulting radioactive contamination would potentially make the area useless, or at the least cause people to panic. Manufacturing a dirty bomb is not significantly more complex than manufacturing a conventional bomb, and many types of radioactive materials could be used. Weapons-grade materials or spent nuclear fuel would cause the most significant contamination, but even medical supplies, such as radium, could be used. While this type of weapon has little traditional military use, it has the potential to serve well as a weapon of terror.

A disability is a condition that incapacitates a person in some way so that he or she cannot carry on normal pursuits. The definition of "disability" in disability income policies varies substantially and should be carefully examined. Disability may be total, partial, permanent, or temporary, or a combination of these. In the context of the Americans with Disabilities Act (ADA), "disability" is defined as a recorded or perceived physical or mental impairment that substantially limits one or more major life activities of an individual.

The disability benefit is the amount payable under a disability income policy or provision in the event of disability of the named insured.

Disability buyout insurance refers to a disability insurance policy designed to buy out a disabled business owner or partner. The proceeds from the disability policy are used to fund an agreement designed to provide the company owners with the money they need to purchase a disabled owner's or partner's interest in the company or partnership at a mutually agreeable price. A disability buyout insurance plan is specifically designed to fund a buy-sell agreement between the owners or between the owners and the company.

Disability income insurance is a type of health insurance that provides periodic payments to replace income lost when the insured is unable to work as a result of sickness or injury. The definition of "disability" found in disability income policies varies substantially and should be carefully examined.

Disappearing deductible is a formula deductible that decreases as the amount of loss increases and disappears entirely to provide full coverage when the loss reaches a specified amount. Disappearing deductibles were once commonly used in property insurance policies.

The disaster insurance gap is the amount that remains after insurance is applied to a total economic loss from a covered disaster. It reflects the extent to which insureds—individuals, businesses, communities, or governments—remain financially exposed after events such as floods, tornadoes, wildfires, earthquakes, hurricanes, or other major hazards. A large disaster insurance gap can slow recovery, increase out-of-pocket costs, and place greater pressure on public relief and rebuilding programs.

A disaster recovery plan delineates actions to be taken to recover from a disaster and resume business operations. It does not address preplanning or emergency actions and is part of a broader business continuity management plan.

Disciplinary proceeding expense is a type of coverage found within nearly all lawyers professional liability insurance policies that pays the expenses required to defend an insured attorney when a state bar association or regulatory agency brings disciplinary proceedings against them. Disciplinary proceeding expense coverage is typically subject to an annual sublimit of either $5,000 or $10,000. In addition, expenditure of such monies reduces the policy's annual aggregate limit. However, disciplinary proceeding expense coverage does not apply to fines, penalties, monetary sanctions, or the return of any client fees.