Type of level term insurance that needs a larger premium payment in the first year than the amount of annual premiums in subsequent years. This higher first-year premium is called a deposit . If the insured dies, double the deposit is added to the death benefit. If the insured lives, double the deposit is returned. If the policy lapses, the insured forfeits the deposit and receives no refund.
Insurance Encyclopedia
Deposit-only bank account
Type of bank account that provides protection against cyber thieves because it has a block or filter that enables it to only accept electronic deposits. Sometimes called zero-balance account (ZBA) . See also electronic funds transfer (EFT) system .
Deposition
Process of taking a witness’s sworn testimony out of court; usually done by an attorney. It is a chance for the opposing attorney to ask the witness whatever he or she wants to know, to fill in some blanks, finish preparing the case, evaluate the witness’ testifying style, and determine how to approach the witness at trial.
Deposition (Legal Terminology)
A sworn statement taken from a party or witness in a court case. This statement is usually done as an interview, which the person testifying is compelled to attend.
Depositor’s forgery coverage
Coverage against loss due to forged instruments. Limited coverage is automatically included in homeowners contracts. Commercial establishments can purchase crime coverage with this feature.
Depositor’s Forgery Insurance
A type of protection against the forgery or alteration of instruments such as checks, drafts and promissory notes purported to have been written by the insured. It is issued to individuals, firms and corporations, but not to banks or buildings and loan associations. It can be written to cover incoming items, but this is seldom done. Contrast with “Commercial Forgery Policy.”
Depositor’s forgery insurance (Criminal)
Insurance that protects the insured against forged or altered financial instruments; for example, checks or promissory notes, made in the insured’s name or supposedly signed by the insured.
Depository bond (Surety)
A bond promising that government deposits made to a bank will not experience loss.
Depreciation
A decrease in the value of any type of tangible property over a period of time resulting from use, wear and tear, or obsolescence.
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US: A decrease in the value of property over a period of time due to wear and tear or obsolescence. Depreciation is used to determine the actual cash value of property at time of loss. (See Actual Cash Value)
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A decrease in value due to age, wear and tear, etc.
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A loss in the value of property, including car, house, building, or other type of physical items. This loss can be due to wear and tear, usage, or the property becoming outdated.
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As property ages and becomes worn it often loses value. That loss of value must be taken into account in any adjustment of property insurance that covers loss of actual cash value.
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Loss in value. The difference between the replacement cost new and present value. The difference between the values as of two different dates. Also, loosely used, the amount charged against income to offset future depreciation and to recover the capital invested in a wasting asset.
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UK: The decline in value of property resulting from use, wear and tear or obsolescence. Depreciation is not covered under contracts of indemnity but insurers may issue ‘new for old’ and reinstatement policies thereby modifying the principle of indemnity.
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The decrease in the value of an item due to age, use or wear and tear. Such devaluation is not covered under a contract of indemnity. However an insurer may agree to provide cover on “a new for old” basis which represents a modification of the principle of indemnity and avoids the need to determine rates and amounts of deprecation when settling claims.
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US: The decrease in the value of property over a period of time, usually as result of age, wear and tear from use, or economic obsolescence. Actual physical depreciation (wear and tear from use) is subtracted from the replacement cost of insured property in determining its actual cash value (ACV); courts in some jurisdictions have allowed insurers to deduct depreciation due to economic obsolescence as well.
Depreciation Insurance
Insurance under which there is payable in case of loss, the difference between the actual cash value of the loss to the property insured and the cost of replacing or rebuilding it in like size and of similar construction.