Process in which health insurance premium rates continuously increase for individuals or small groups eventually making the insurance unaffordable. It may be due to the fact that healthier and younger employees choose managed care plans, leaving less healthy individuals in experience-rated indemnity plans. Other factors that may add to the problem are contribution strategies used by employers and pricing techniques of a plan.
Insurance Encyclopedia
Death strain
The mortality risk above the level of the ceding office’s retention for which reinsurance may be required. On a risk premium basis this is the difference between the sum insured and retention in the first one or two years.
Debenture
Bond that is not secured by any type of asset but only backed by the general credit of the issuing corporation.
Debentures
Securities issued by companies acknowledging long-term loans. Debenture holders are entitled to a fixed rate of interest each year regardless of company profits as it is debt capital.
Debit
MEDICAL,USA: 1. In accounting, this is an increase in assets or a reduction in liabilities or capital. It is the opposite of credit and an accounting entry is posted on the left side of the financial ledger. 2. In insurance, debits represent underwriting factors that have an unfavorable effect on an individual’s mortality rating. This term is used in a numerical rating system.
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Collection of premiums of industrial type Insurance. A group of industrial policies assigned to an Agent for collection and servicing.
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The amount of premiums outstanding and business to be collected by debit or home service agents. This can also refer to the area these customers live in.
Debit Life Insurance
Debit life insurance (also known as Industrial Life Insurance) is a type of insurance where the premium is paid weekly, biweekly, or monthly and is collected by an agent of the insurance company who visits the insured at his or her home in order to collect the premium. Debit life insurance is often purchased by people with low incomes. Face amounts are often small and used principally for final expenses.
Debit system (Life Insurance)
A system used by agents to collect policy premiums weekly or monthly.
Debris
See: REMOVAL OF DEBRIS.
Debris Removal
Debris removal pays for the expense of removing debris caused by a covered peril. Normally the debris must be removed within 180 days. For example, a person’s home may be a total loss due to a fire. The charred remains of the house are “debris” and the removal of the remains is not covered in the value of the house. The debris removal clause provides coverage to clear the lot.Most homeowner and commercial fire policies include debris removal. It is important to note that the coverage does not include clean up of any pollutant.
Debris Removal Clause
A provision that may be included in a property policy to provide the insured with indemnification for expenditures incurred in the removal of debris produced by the occurrence of an insured peril. Ordinarily a property policy covers only the direct damage caused by an insured peril.
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A consequential coverage commonly included in direct loss policies. For example, fire policies provide limited recovery for the insured’s cost of removing the debris after a covered fire. Not to be confused with removal.