An original Insurance contract between an Insurer and insured exposed to the risk of loss.
Insurance Encyclopedia
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.
Direct loss (Property Insurance)
Damage that directly occurs as a result of a particular hazard. For example, flood damage.
Direct Market
The Insurance market in which the insurable interest of the ship-owner, cargo-owner etc. is placed.
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Reinsurers that deal with the cedant through their account executives, rather than through intermediaries. See Brokerage market.
Direct pay
1. System of billing members or subscribers of insurance policies for the premium payments, and they pay directly to their health plans. Direct pay rates are usually higher than group rates. Also called billed direct or billed-at-home . 2. Phrase used when the patient pays straight to the physician or health care provider for medical services rendered.
Direct payment subscriber
Individual enrolled in a managed care plan who pays premiums to the plan instead of through a group. Usually, payment is higher and benefits are not as wide ranging as the subscriber enrolled and paying as a member of the group.
Direct placement
Sale of a whole issue of bonds or stock to one or two large institutional clients without them being offered publicly.
Direct Premium Written
The aggregate amount of recorded originated premiums, other than Reinsurance, written during the year, whether collected or not, at the close of the year, plus retrospective audit premium collection, after deducing all return premiums.