Glossary

Double indemnity refers to payment by a life insurance policy of two times the face value when death results from an accident (e.g., an auto accident) as opposed to a health problem (e.g., cardiac arrest).

Double protection refers to a form of life insurance combining whole life with an equal amount of term, with the term expiring at a future date, usually age 65.

A downsizing exclusion is an exclusion sometimes found within employment practices liability insurance policies that precludes coverage for claims resulting from large-scale layoffs within the insured organization. There are two rationales underlying downsizing exclusions. The decision to terminate a significant portion of its workforce is largely within an insured organization's control, and insurers could be faced with catastrophic losses in the absence of the exclusion. Downsizing exclusions are no longer common. Instead of excluding this exposure, as was once standard practice, underwriters currently surcharge firms they perceive as having a significant downsizing exposure. In other instances, underwriters impose special, higher deductibles/retentions for downsizing claims.

Draft authority is the authority insurers grant to some agents to issue claim drafts on their behalf. This is most commonly done with personal lines coverages not involving liability (e.g., auto physical damage and damage to insured property under homeowners policies). Draft authority is usually limited to small amounts ($2,500 or less).

Dramshop liability is imposed upon those in the business of serving alcoholic beverages for loss arising out of the intoxication of patrons.

Drilling fluid is any of a number of liquid and gaseous fluids and mixtures of fluids and solids (as solid suspensions, mixtures, and emulsions of liquids, gases, and solids) used to aid the drilling of boreholes into the earth.

Drilling mud is usually synonymous with drilling fluid. Drilling mud (or mud) is composed of water-based, oil-based, and synthetic-based fluids used in drilling operations, particularly fluids that contain large amounts of suspended solids, emulsified water, or oil.

A drilling rig is a large structure with equipment used to drill oil wells and natural gas extraction wells. Drilling rigs can be mobile equipment mounted on trucks or trailers, or more permanent land- or marine-based structures (such as onshore or offshore platforms).

Driver's Privacy Protection Act (DPPA) of 1994 prohibits a state department of motor vehicles from disclosing an individual's personal information, except as specifically allowed by the DPPA.

A drive other car (DOC) endorsement (CA 99 10) is a commercial auto endorsement designed to provide nonowned auto coverage under a commercial auto policy similar to that which would be provided under a personal auto policy (PAP). The Drive Other Car Coverage—Broadened Coverage for Named Individuals (CA 99 10) endorsement is commonly used when an executive officer, for example, does not carry personal auto insurance because he or she is furnished a company auto. Coverage under the endorsement would come into play in the event the individual designated in the endorsement (including his or her resident spouse) is driving a nonowned auto for personal use. Coverage under the endorsement does not apply if the auto in question is owned by that individual or by any member of his or her household; or the auto is used by either of these individuals while working in a business of selling, servicing, repairing, or parking autos.