See: dividend accumulations .
Insurance Encyclopedia
Dividend expenses
Amount of money that it costs the insurance company to maintain each policy in force for the current year.
Dividend interest rate
Sum of money that accumulates and that represents the actual rate earned on an insurer’s present investments. The dividend interest rate is used to calculate policy owner dividends.
Dividend option (Life Insurance)
Under certain life insurance policies, an option that allows the insured to choose an alternate way to collect dividends.
Dividend options
Several choices that participating life insurance policy owners can choose to indicate how they want to receive their share of the insurance company’s divisible surplus including accumulation at interest option, additional term insurance option, automatic dividend option, cash payment option, dividend accumulations, enhancement type policy, paid-up additions, and premium reduction option.
Dividend rate of mortality
Death (mortality) rate presently experienced by the insurance company on the insurance policies it has sold. The insurer chooses the rate of mortality for a given age in calculating the policy owner’s dividends.
Divisible Contract Clause
A clause providing that a violation of the conditions of the policy at one insured location will not void the coverage at other locations.
Divisible contract clause (Property Insurance)
A clause stating that coverage will not be voided at all locations if the conditions of the policy are violated at another location.
Divisible surplus
Portion of an insurance company’s earnings available for distribution to owners of the company’s participating policies.
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UK: The portion of an insurance company’s earning that is available for distribution to ‘withprofits’ policyholders in the form of bonuses.
Division Wall
A partition, meeting stated standards of construction, that separates a structure into two areas so that the Fire in one area will have less chance to spread into the other areas.