Dollar value that is related to a given object or specific service (e.g., medical equipment or medical supplies).
Insurance Encyclopedia
Direct costs
See: out-of-pocket expenses (OOPs) .
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Costs that vary directly with the amount of business transacted.
Direct Damage
Loss caused by the immediate hazard or perils as compared with in Direct damage, which is contingent upon the immediate peril.
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Physical damage caused to property by a peril such as fire or lightning. The peril, fire, directly causes damage to the property without any intervening cause of damage.
Direct data entry
Under the Health Insurance Portability and Accountability Act (HIPAA), this is the access of data directly into the computer through machine-readable source documents or through the use of online terminals that is immediately transmitted into a health plan’s computer.
Direct dealing
An arrangement that enables certain motor syndicates at Lloyd’s to deal directly with non-Lloyd’s brokers. However, the premiums payable have to be guaranteed by, and paid through, a Lloyd’s broker.
Direct deposit
Monies electronically sent to an account in a financial institution (i.e., bank, trust company, savings and loan association, brokerage agency, or credit union).
Direct Insurance
An original Insurance contract between an Insurer and insured exposed to the risk of loss.
Direct insurer
UK: an immediate insurer of a risk, as opposed to a reinsurer who insures derivative risks, that is the risks assumed by a direct insurer.
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UK: An insurer, as opposed to a reinsurer. The direct insurer provides the primary insurance for the business community or general public with or without the involvement of an intermediary. In the US particularly, the term is also used for an insurer dealing direct with their policyholder and not through brokers or agents.
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RAW: See: direct writer .
Direct liability clause
See: CUT THROUGH CLAUSE.
Direct Loss
A loss that stems directly from an unbroken chain of events leading from an insured peril to the loss. Loss that is a Direct consequence of a particular peril. Fire damage to a refrigerator would be a Direct loss. Spoiling of food in the refrigerator as a result of the Fire damage would be an in direct or consequential loss, or a loss from a change in conditions. See Also: “Loss, Direct,” and “Consequential loss.”
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US: Financial loss that results directly from an insured peril.
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The immediate consequence of the action of an insured peril. A fire damaged structure is a direct loss by fire. In contrast – See Consequential loss.