Glossary D - E

Declaration (DEC) Page

Usually the first page of an insurance policy that contains the full legal name of the insurance company, the policy number, effective and expiration dates, premium payable, the amount and types of coverage, and the deductibles.

Deductible

The amount of the loss that the insured is responsible to pay before benefits from the insurance policy are payable.

Depreciation

The actual or accounting recognition of the decrease in value of property over a period of time according to a predetermined schedule.

Dual Capacity

In Workers Compensation, an employer may be liable in two ways to an employee who incurs bodily injury on the job as a result of using a product or service produced by that employer. The employee is eligible for Workers Compensation benefits and may also sue the employer because of the defectiveness of the injuring product or service.

Earned Premium

The portion of the policy premium paid by an insured that has been allocated to the insurance company's experience, expenses, and profit year to date.

Endorsement

A written agreement that changes the terms of an insurance policy by adding or subtracting coverage.

Effective Date

The starting date of an insurance policy: the date the policy goes in to force.

Exclusion

A contractual provision in an insurance policy that denies or restricts coverage for certain perils, person, property, or locations.

Experience Modification

The adjustment of premium resulting from the use of experience rates. Experience rating plans reflect an insured's pass loss experience (usually from the past 3 years) and uses this experience to modify and determine the premium for the current policy year.

Expiration Date

The termination date of coverage as indicated on an insurance policy.

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