A lawsuit brought by one or more shareholders on behalf of the corporation and seeks to enforce a right of action belonging to the corporation. Any recovery in a derivative suit is paid to the corporation and the individual shareholders who prosecute the derivative suit are benefited only indirectly by reason of the corporation benefiting. The claims asserted by the plaintiff and the defenses available to the defendants in a derivative suit are generally the same as if the corporation itself was prosecuting the claim.
Insurance Encyclopedia
Dermatology
Study of anatomy and physiology of skin, hair, and nails and the diagnosis and treatment of their diseases and disorders.
Derogatory remark
Statement, written or oral, giving an unfavorable or negative opinion of another individual or situation.
Description of risk clause
Some statements e.g. ‘the lorry will deliver coal,’ describe the risk rather than warrant it. The clause operates like an exclusion in that it suspends cover when the actual use is not as described. Cover reattaches when normal use, i.e. delivering coal, resumes. A warranty would terminate cover, not suspend it, at the moment of breach (Farr v. Motor Traders (1920)).
Description of use
Motor policies state the insurer will not be liable for loss whilst the vehicle was being used otherwise than in accordance with the ‘Description of Use’ contained in the policy. This description is also printed on the certificate of insurance. See CLASS OF USE.
Design Load
Maximum weight which can be safely supported by a floor. equipment, or structure as determined by its design characteristics.
Design risks
Liability for injury, loss or damage arising out of the design, plan, formula or specification of goods. Public liability and products liability policies tend to exclude these risks where the work is done for a fee as this may indicate that the risk is more properly insured under a professional indemnity policy. Where a fee is not normally payable there is no exclusion and ‘non-professionals’ remain covered for third party injury or damage as defined in the policy. This is important as liability may automatically attach to ‘non-professionals, e.g. retailers, under the Sale of Goods Act 1979 or the Consumer Protection Act 1987. See also PATTERNS, MODELS, MOULDS DESIGNS. AND
Design warranty clause
A clause in the JCT Standard Form of Building Contract with Contractors Design 1998 making the building contractor responsible for the design of the building. The clause seeks to put the contractor’s design liability on the same footing as that of the architect or other professional, i.e. on the basis of a duty of reasonable care. The clause does not call upon the contractor to effect insurance but the contractor’s design liability can be insured in the professional indemnity market.
Designated beneficiary
Individual, other than the insured, who is to receive the proceeds on the death of the insured under a life insurance policy.
Designated code set
Medical code set or an administrative code set that Health and Human Services (HHS) has designated for use in one or more of the Health Insurance Portability and Accountability Act (HIPAA) standards.