Dependent Coverage

Insurance coverage on the head of a family which is extended to his dependents, including only the lawful spouse and unmarried children who are not yet employed on a full time basis, unmarried daughter, widowed daughter, divorced dependent daughter. Children may be step, foster and adopted as well as natural. Certain age restrictions on children usually apply.

Dependent properties

See: Business income, dependent properties.
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Properties which an insured business does not own, operate or control, but upon which the insured’s income depends. Examples include major suppliers or customers. Previously known as contingent properties.

Dependent-care spending account

Benefit that allows employees to set aside a portion of their wages, before taxes are taken out, to pay for certain dependent-care expenses such as child care or elder care, over-the-counter medically related items, and health premiums. Funds are taken out of an employee’s wages through payroll deductions and put into an account controlled by a plan administrator. The employee submits proof of qualified expenses to the plan administrator, who will reimburse the employee from the employee’s account. Employees have to estimate expenses carefully because any unused money at the end of the year is forfeited. Also known as a tax saver or flexible spending account (FSA) .