Drone

An aircraft, robot or other flying craft operated by remote control or onboard computers. Also referred to as Unmanned Aircraft Systems (UAS). Can carry small packages or cameras. Often used by realtors, claims adjusters, videographers, emergency services, and many other professions.

Drop down cover

An excess layer, umbrella liability policy or excess of loss treaty that lowers, i.e. drops down, its excess point if the limits of the underlying layer or retention have been exhausted. ‘Drop downs’ are subject to annual aggregate limits. The insured/reinsured may be able to absorb a given retention level on one loss but additional losses need the added protection afforded by the drop-down. ‘Drop down’ covers may also pick up gaps in cover as may happen in umbrella liability policies and master global policies sitting over local policies. See TOP AND DROP.

Drug formulary

List of prescribed drugs recommended by a managed care plan and dispensed by participating pharmacies to members of the plan. It is periodically reviewed and modified. See the three types—open, closed, and restricted formularies for information. See formulary .
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A schedule of prescription drugs approved for use which will be covered by the Health Insurance Plan of the insurer and dispensed through participating pharmacies.

Drug tiers

Option introduced in the Medicare prescription drug plan that allows each plan to group different drug types together (i.e., generic, brand, preferred brand). Tiers could be used to describe drug groups that are based on classes of drugs. If the tier option is used, the plan should provide clarification on the drug types covered under the tier in the prescription drug plan notes section.