Glossary

A defined contribution plan is a pension plan calling for definite annual contributions by the employer but with no specific benefit promised to the employee. The employee's benefits are ultimately determined by the amount contributed plus the investment income.

An optional coverage provided by most builders risk/marine cargo policies. Delayed completion coverage insures against income loss or specified additional expenses (such as additional interest charges and advertising expenses) that result from a delay in the completion of a construction project as a result of covered property damage. Delayed completion coverage is sometimes referred to as delay in start-up (DSU), delayed opening, soft costs, or advance loss of profits coverage.

A delay clause is an ocean marine insurance exclusion that eliminates coverage for loss of market and other consequential loss resulting from delayed voyages, regardless of the cause of the delay, even if from an insured peril.

A delay provision is a life insurance policy provision that allows the insurance company to delay policy loans or payment of the cash surrender value for a stated period (usually 6 months). This provision is intended to protect life insurers from losses from a "run," during tough economic times, on cash reserves built up in life insurance.

Delivery concerns the actual placing of an insurance policy in the hands of the insured. Delivery could be via traditional mail or electronically.

Demand surge is the increase in the cost of repair or replacement of damaged property that may occur following a large-scale disaster when many individuals and organizations vie for a limited supply of labor and materials needed for repairs.

Demand trigger coverage is another name for the original claims-made trigger concept.

Demurrage is a policy extension contained in a maritime collision liability coverage section. It provides payment to the owner of the other vessel in the collision (when the policyholder's vessel is at fault) for costs resulting from the loss of the use of the vessel and the delay caused in the voyage while the vessel is being repaired.

A demurrer is a pleading usually filed by the defendant attacking the legal sufficiency of a complaint.

Demutualization is the process where a mutual insurer changes its legal form to that of a stock insurer. As a stock company, the insurer can more easily raise capital, offer better compensation to its management through stock options, achieve superior operating and financial flexibility, and enjoy positive tax benefits. A major drawback is the high expenses associated with the process due to various legal, accounting, regulatory, and tax hurdles.