An insurance company’s network of organizations and individuals who perform all the marketing activities to convey an insurance product from an insurer to the consumers.
Insurance Encyclopedia
District of use
Factor in the rating of motor insurance premiums. The incidence of vehicle accidents varies directly with the density of the population in given districts. Private car insurers generally divide the country into six districts for this purpose while commercial vehicle insurers use three districts for goods-carrying vehicles.
Diversification
Spreading of risk. It may be accomplished by several different technique such as geographically, by type of risk, by type of coverage or by insuring more risks that are separate exposures.
Divestiture
Act of a medical supplier to sell part or all of its assets either by court order or voluntarily.
Divestment
The provision of Lloyd’s Act 1982 that the Council of Lloyd’s shall not permit a Lloyd’s broker to continue to act in that capacity if it is associated with a managing agent.
Divided cover
Insuring a person or object with more than one insurer.
Divided Coverage Burglary
Grouping of property of classes in an Insurance Policy, with a separate maximum amount of payment stipulated for each class to cover the loss or damage sustained with that class. A Burglary Policy written under divided coverage would specify that the Company would pay up to a certain sum for the theft of jewellery, silverware, and furs, up to another amount for household furnishings.
Divided Limit
In liability Insurance, separate limits of liability for bodily injury and property damage claims. Many divided limit liability Policy contain three separate limits for (i) bodily injury to each person. (ii) bodily injury to two or more persons injured in the same accident, and (iii) property damage per accident, See Also: “Split limit.”
Divided or Specific Coverage
Property Insurance that applies separate Policy limits to narrowly defined types of property or to the same type of property at different locations.
Dividend
MEDICAL,USA: 1. Refund of excess premium paid to the owner of an individual participating life insurance policy. It reflects the difference between the premium charged and actual experience. Also called policy dividend or policy owner dividend . 2. Part of a group insurance premium that is returned to a group policyholder that has a better claims experience than had been projected when the premium was calculated. Also called experience rating refund, experience refund , and retroactive rate reduction . 3. In a mutual or participating company, it is quarterly or annual payments by a business to a stockholder. Dividends paid in cash are called cash dividends . Dividends paid with shares of stock are called stock dividends .
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A refund of part of the premium on a participating policy a share of policyholder surplus funds apportioned for distribution.
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US: A return of part of the premium on participating insurance to reflect he difference between the premium charged and the combination of actual mortality, expense and investment experience. Such premiums are calculated to provide some margin over the anticipated cost of the insurance protection.
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The return of party of the policy’s premium for a policy issued on a participating basis by either a mutual or stock insurer. A portion of the surplus paid to the stockholders of a corporation.
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When an insurer returns part of the premium paid by an insured for a policy, or a part of a surplus paid to each stockholder in a company.