UK: 1. Underwriting measure imposed by life insurers on sub-standard lives. The debt is deducted from the sum payable on death within the term but not from any survival benefit. It may be for a fixed amount (fixed debt) or it may diminish each year (diminishing debt) eventually to nil to coincide with a reducing extra risk 2. Money due from one party to another. ‘Trade debtors’, a balance sheet item, are assets at risk through non-payment and therefore insurable under credit insurance and book debts insurance.
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UK: a device the effect of which is to reduce the amount payable under a life policy effected on a sub- standard life in the case of death from a specified cause, or from natural causes as opposed to accidental death.
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MEDICAL,USA: Legal obligation to pay money. This may arise from a consumer credit transaction or rental purchase agreement.