Overhead costs in making insurance products available to the general public such as insurance agent compensation, group sales representatives’ salaries, postage, printing, and telecommunications for direct response marketing.
Tag: RAW
Distribution list
See: list service (listserv) .
Distribution network
the means by which a direct insurer markets its products to prospective policy holders (for example, agents, brokers, branches).
Distribution system
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.
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.