Glossary

A deemer period concerns rate and form approval laws in states that regulate rates and forms via the "file and use" system. Insurers file rates and forms and, if not disapproved within a certain length of time (the "deemer period"), the rates are "deemed approved."

Deep linking is the term used when linking from one website to a specific page on another website without permission in a manner that interferes with or diminishes the intellectual property rights or advertising revenue of the owner of the site to which it is linking. In this situation, the site doing the linking uses the intellectual property rights of the site to which it is linking to enhance the value of the first site. For example, consider a publishing firm that provides information on human resources policies and procedures to its customers. Its online material contains a number of links to a specific page within a human resources consulting firm's website. The consulting firm sues the publishing firm, alleging that the links violate the consulting firm's intellectual property rights. This is because the links enhance the publishing firm's website while bypassing the consulting firm's home page and minimizing the potential for compensation to the consulting firm. This is because the home page is from where the bulk of the consulting firm's advertising revenue comes. Coverage for liability incurred from improper deep linking is available under cyber and privacy insurance policies, specifically under the website media content liability insuring agreement. In addition, improper deep linking is covered under traditional media liability insurance policy forms.

Defamation is any written or oral communication about a person or thing that is both untrue and unfavorable. Media liability and general liability policies typically provide coverage for claims alleging defamation (although general liability policies exclude such coverage for insureds engaged in media businesses).

A default is a failure to perform a legal or contractual duty. More specifically, a default is the omission or failure to fulfill a duty, observe a promise, discharge an obligation, or perform an agreement.

Default insurance is an alternative method of financing the risk of contractor default (versus performance bonds.) Used primarily by general contractors to manage the risk of subcontractor default, default insurance is first-party insurance that compensates the insured in the event a covered subcontractor fails to fulfill its contractual obligations. Contractors buying this insurance are required to develop and implement rigorous subcontractor prequalification procedures and to retain a percentage of losses. Generally, this coverage is best suited for large projects or large general contractors with a significant percentage of subcontracted work and established relationships with subcontractors. Sometimes still referred to by the original product of this type, Subguard, there are now several markets in this coverage line.

The degree of risk inherent in a bond to which bondholders are subject. An issue that is fully "defeased" means that both bond principal and bond interest are at risk of loss in their entirety.

A defendant is the party against whom a civil or criminal lawsuit has been brought.

Defense-only coverage is liability insurance covering defense costs but not settlements or indemnity payments. Defense-only policies are best suited to insureds having effective loss control programs and a willingness to defend, rather than settle, claims made against them. Such coverage is most commonly (although not exclusively) used to cover defense costs associated with employment practices liability (EPL) claims, in which defense payments represent the majority of claim-related costs. Directors and officers (D&O) liability and other types of professional liability policies also provide defense-only coverage to allegations of intentional or illegal conduct by the insured. One drawback of defense-only policies is that they subject an insured to potentially large uninsured judgments.

The Defense Base Act is legislation that extends the Longshore and Harbor Workers' Compensation Act (LHWCA) to apply to certain categories of employees working overseas. The three general divisions of covered employees are (1) those working on military bases acquired from a foreign government after 1940, (2) employees of civilian contractors and subcontractors engaged in public work projects for the US government outside the continental United States, and (3) individuals employed outside the continental United States by a US employer whose purpose it is to provide welfare or other such services to the Armed Forces as approved by the secretary of defense.

A defense clause is an insurance provision stating that the insurance company agrees to defend, with respect to insurance afforded by the policy, all suits against the insured.