A table that gives the value of dollars payable at certain times in the future. The table shows values at present and discounted, for different interest rates.
Insurance Encyclopedia
Discounting
a term used to describe adjustments made to general business reserves so that they reflect the present value of the future contingent liabilities; such an adjustment may be made for accounting purposes, and may in certain circumstances be required for tax purposes where the reserves are initially calculated by reference to the likely ultimate cost of settlement after taking into account monetary inflation, and also the tendency for court awards for damages to increase by more than the rate of inflation; the adjustment is usually made by discounting the ultimate cost of settlement by reference to a suitable rate of interest, thus reflecting the time value of money.
Discounting of reserves
See: TIME AND DISTANCE POLICIES.
Discounts (HIR 2016) for Health Insurance
Discounts for early buyers and health conscious customers. Under new rules if someone buys health insurance at the early age, renewed regularly or practice preventive or wellness habits, then you will get some discounts in premium or discounts and/or benefits on diagnostic or pharmaceuticals or consultation services of providers in the network are permitted.
Discovery cover (Reinsurance)
A treaty that covers losses found during the term of the treaty, no matter when the loss actually occurred. See Treaty reinsurance .
Discovery Cover / Reinsurance Discovery Cover
A reinsurance treaty covering losses that are discovered during the term of the treaty regardless of when they were sustained.
Discovery of ship’s papers
Application to court by an insurer after a loss for the production of relevant ship’s documents. The order can be issued against the shipowner, a mortgagee, the insured in the case of cargo policy, insurers in the case of reinsurance, an agent who sues on behalf of his principal, an insured where the insurer seeks a return of money allegedly obtained by fraud, an assignee of policy proceeds and other interested parties.
Discovery period
UK: 1. Period within which a defalcation must be discovered and notified to the fidelity guarantee insurer. The customary six month period runs from the employee’s resignation, dismissal or retirement or three months from the expiry of the policy whichever occurs first. 2. See EXTENDED REPORTING PERIOD.
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The period of time, commonly one year, after the termination of a surety bond during which covered loss may be discovered, reported, and covered. Also refers to the optional extension of coverage that may be purchased by insureds under certain circumstances following expiration of the policy. If this coverage extension is purchased, claims made against insureds during the extension period are covered if the claims are for wrongful acts (for a D&O policy) occurring before the expiration of the original policy period. Depending upon the terms of the particular insurance policy, this optional extension of coverage may be available only if the insurance company cancels (other than for non-payment of premium) or refuses to renew the policy, or alternatively, may also be available if the insureds cancel or refuse to renew the policy. If the coverage extension is available under both of those situations, the extension is referred to as bilateral discovery or ERP. Coverage during this extension period is subject to the same limit of liability as applies to the original policy period.
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The time allowed to the insured after termination under certain bond and Policy provisions to discover a loss which occurred during the period by the contract and would have been recoverable had the contract continued in force. This period varies from six months to three years where a Company can fix the period of time to be allowed. It may be governed by statute and in certain bonds the period is indefinite because of statutory requirements.
Discovery period (Surety)
A grace period given to an insured who has cancelled a bond, during which he or she can still discover and report losses that occurred during the bond’s term. Losses reported in this fashion are paid by the original surety. The grace period is usually one year.
discrepancy notice (DN)
Formal statement that a managed care plan sends to a physician or hospital facility that indicates an inconsistency between their data about the disposition of a patient such as group number or difference in claim amount.