Glossary

Defense costs endorsements are nonstandard commercial general liability (CGL) endorsements stating that if the insurer agrees to provide a defense to an insured, but it is later determined that the claim would not be covered by the policy, the insurer is entitled to reimbursement of defense costs incurred up to that point.

Defense within limits is a liability policy provision stating that amounts paid by the insurer to defend the insured against a claim or suit reduce the policy's applicable limit of insurance.

The amount of an insurer's acquisition costs incurred as premium is written but earned and expensed over the term of the policy.

A deferred compensation plan is an arrangement between an employee and their employer to defer some portion of the employee's current income or salary until a specified future date.

Deferred group annuity refers to a retirement plan under which a paid-up annuity is purchased each year for each employee.

Deferred payment merchandise is coverage for merchants, distributors, and product manufacturers that sell their wares using time payment plans.

Deferred premiums are periodic premium payments, usually monthly, at no interest.

The deferred tax asset is the amount of loss reserves or unearned premium that is not deducted from an insurer's income when calculating income taxes.

Deficit carry-forward or carry-back refers to the transfer of debit or loss from one accounting period to another under a reinsurance treaty.

A defined benefit plan is a pension plan providing a specific benefit for each employee.