Dictionary – Damages – Dwelling Property 3

DAMAGES – The amount recoverable by a person who has been injured in any manner, including physical harm, property damage, or violated rights, through the act or DEFAULT of another.

DAMAGE TO PROPERTY OF OTHERSDAMAGE covered up to $500 per occurrence for an INSURED who damages another’s PROPERTY. Payment is made despite the lack of legal LIABILITY. COVERAGE is included in Section II of the HOMEOWNERS POLICY.

DATUM – Any horizontal plane from which heights and depth are measured.

DEALER – One who buys and sells for his or her own account. The merchandise is INVENTORY; consequently any gain on the sale is ordinary INCOME.

DEATHBED WILL – Also known as NUNCUPATIVE WILL – Not valid in all states,  an oral WILL made in front of witnesses by one who is dying with the statements of the witnesses later reduced to writing.

DEATH BENEFIT – A payment made to a designated BENEFICIARY upon the death of the employee ANNUITANT.

DEBENTURE – 1) An unsecured NOTE or BOND; 2) a BOND that is backed only by the general CREDIT of the issuing CORPORATION. No specific PROPERTY is PLEDGED as SECURITY behind the LOAN.

DEBIT – In a CLOSING STATEMENT it is an item that is charged to a party; in accounting, the entries on the left side of the ledger.

DEBIT INSURANCE LIFE – Also known as INDUSTRIAL LIFE INSURANCE – Issued in small amounts, usually less than $1,000, with PREMIUMS payable on a weekly or monthly basis. The PREMIUMS are generally collected at the home by an AGENT of the company DEBT – Also known as CHARGE – An accounting term identifying money paid or payable.

DEBTOR – Also known as BORROWER – A person who owes money.


DEBT/EQUITY RATIO – The relationship of these components of PURCHASE CAPITAL.


DECEDENT – One who has died.

DECLARATION OF HOMESTEAD – The document recorded by a PROPERTY owner to establish a HOMESTEAD EXEMPTION.

DECLARATION OF NO SET-OFF – Also known as ESTOPPEL CERTIFICATE and CERTIFICATE OF NO DEFENSE – A document signed by the borrower indicating the date of the most recent payment, the exact PRINCIPAL balance due and the INTEREST RATE.

DECLARATION OF TRUST – A written statement by a TRUSTEE to acknowledge that the PROPERTY is held for the benefit of another.

DECLARATIONS – Statements in an INSURANCE CONTRACT that provide information about the PROPERTY or life to be INSURED and used for UNDERWRITING and rating purposes and identification of the PROPERTY or life to be INSURED.

DECLINATION – The INSURER’S refusal to INSURE an individual after careful evaluation of the APPLICATION for INSURANCE and any other pertinent factors.

DECLINING BALANCE DEPRECIATION – A method of DEPRECIATION, often used for income tax purposes, whereby a RATE is applied to the remaining balance to derive the DEPRECIATION deduction.

DECREE – An order issued by one in authority; a court order or decision.

DEDICATED-USE PROPERTIES – Also known as SPECIAL-PURPOSE PROPERTIES – Those improvements built for a single purpose which would have a limited demand in the marketplace, such as schools, churches, funeral homes, hospitals, etc.

DEDICATION – The donation of LAND by an owner for some public purpose, such as a park or school site, together with the proper acceptance by a governmental body.

DEDUCTIBLE – An amount which a POLICYHOLDER agrees to pay, per CLAIM or per ACCIDENT, toward the total amount of an INSURED LOSS.

DEED – A document, which transfers or relinquishes REAL PROPERTY rights from one person to another. The person giving the DEED is the GRANTOR; the person receiving the DEED is the GRANTEE.

DEED BOOKS – The books, files, or record storage of the public records in which county governments keep the DEEDS and other REAL ESTATE related documents that have been filed.


DEED IN TRUST – The document used to transfer REAL PROPERTY into a LIVING, TESTAMENTARY or LAND TRUST.

DEED OF RECONVEYANCE – Also known as RECONVEYANCE DEED – The DEED from a TRUSTEE to a TRUSTOR, which returns to the TRUSTOR the limited power to sell the PROPERTY.

DEED OF TRUST – Also known as TRUST DEED – A securing document that transfers the limited power of sale to a third party as SECURITY for DEBT. The DEED OF TRUST is used instead of a MORTGAGE in many states.

DEED RELEASE – A document, in the form of a DEED, in which one who has limited rights to a piece of REAL ESTATE abandons those rights back to the owner of the REAL ESTATE often takes the form or a QUIT CLAIM DEED.

DEED RESTRICTION – A clause in a DEED that limits the use of LAND.

DEFAULT – The failure to perform a legal duty, particularly failure to repay a DEBT.

DEFEASANCE CLAUSE – A clause in a MORTGAGE or DEED OF TRUST used to cancel or defeat the document.

DEFECT IN TITLE – Any recorded instrument that would prevent a GRANTOR from giving CLEAR TITLE.

DEFENDANT – The party sued in an action law.

DEFERRED ANNUITY – An ANNUITY providing for the income payments to begin at some specified future date.

DEFERRED CHARGES – Non-tangible costs that are expected to provide VALUE over a number of years. For accounting or tax purposes, these are to be AMORTIZED over the life to which they are expected to provide VALUE.

DEFERRED COMPENSATION – Arrangements by which compensation to employees for past or current services is postponed until some future date.

DEFERRED GROUP ANNUITY – A type of GROUP ANNUITY providing for the purchase each year of a paid-up DEFERRED ANNUITY for each member of the group, the total amount received by the member at retirement being the sum of these DEFERRED ANNUITIES.

DEFERRED MAINTENANCECURABLE PHYSICAL DETERIORATION that should be corrected immediately, although the work has not yet been performed.

DEFERRED PAYMENTS – Payments to be made starting at some future date.

DEFICIENCY – In MORTGAGE finance, the shortfall of funds recovered through the sale of PROPERTY securing a FORECLOSED LOAN compared to the amount of DEBT,

ACCRUED INTEREST, FORECLOSURE expenses, and DAMAGES incurred by the lender.

DEFICIENCY JUDGMENT – A court order stating that the borrower still owes money to the LENDER because, when the PROPERTY was sold at FORECLOSURE, it did not sell for enough money to satisfy the DEBT.

DEFINED BENEFIT PLAN – A pension plan stating either (1) the benefits to be received by employees after retirement or (2) the method of determining such benefits. The employer’s contributions under such a plan are actuarially determined.

DEFINED CONTRIBUTION PLAN – A plan under which the CONTRIBUTION rate is fixed and benefits to be received by employees after retirement depend to some extent upon the contributions and their earnings.

DELAYED EXCHANGE (TAX-FREE) – A transaction in which a PROPERTY is traded for the promise to provide a replacement LIKE-KIND PROPERTY in the near future. The Tax Reform Act of 1984 allows INVESTMENT REAL ESTATE or REAL PROPERTY used in a trade or business to be sold with the tax on the gain deferred, provided replacement PROPERTY is identified within 45 days and closed within 180 days. Other strict requirements must be observed.

DELINQUENCY RATE – Statistically, the number of LOANS with delinquent payments divided by the number of LOANS held in a portfolio. Sometimes, the rate is based on the total dollar volume of the LOANS instead of number. Generally, delinquency is qualified to include only LOANS where payments are 3 or more months past due.

DELIVERY – Transfer of the possession of a thing from one person to another.

DEMAND LOAN – A LOAN that may be called by the lender at any time.

DE MINIMIS SETTLEMENT – An agreement with the EPA to allow a party who had a minor role in contamination to pay a small amount to be released from the LITIGATION


DEMOGRAPHIC – Pertaining to characteristics of the population, such as race, sex, age, household size, and to population growth and density.

DEMOGRAPHY – Study of the characteristics of people residing in an area, including age, sex, income.

DEMOLITION – Destruction and removal of an existing STRUCTURE from a SITE; necessary to prepare a SITE for new construction.

DEMUTUALIZATION – The process of changing the legal structure of an INSURANCE COMPANY from a MUTUAL form of ownership to a stock form of ownership.

DENSITY – The intensity of a LAND use.

DENSITY ZONINGZONING ORDINANCES that limit the maximum number of buildings per ACRE in a particular area, usually for houses in a subdivision.

DENTAL INSURANCE – Individual or group plan that helps pay costs of normal dental care as well as damage to teeth from an ACCIDENT.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) – An agency of the federal government that is active in national housing programs, such as FHA-INSURED LOANS, URBAN RENEWAL, community development, block grants, and FEDERAL FAIR HOUSING Laws.

DEPARTURE PROVISION (OF USPAP) – Section of the UNIFORM STANDARDS OF APPRAISAL PRACTICE (USAP) that allows an APPRAISER to deviate. The departure provision is allowed only in situations where it would not cause a user (appraisal reader) to be misled or confused.

DEPENDENCY PERIOD – Period of time following the readjustment period during which the surviving spouse’s children are under eighteen and therefore dependent of the parent.

DEPENDENT BENEFITS – Social Security BENEFITS available to the spouse or children of a Social Security beneficiary.

DEPLETION – A TAX DEDUCTION to account for reduced LAND VALUE due to removing minerals.


MONEY. The money given by a purchaser with an offer to show sincerity or GOOD FAITH.

DEPOSIT ACCOUNT – An arrangement whereby an individual or organization may place cash under the safekeeping of a financial institution. It is understood that the institution may invest the cash and pay the depositor a specified amount of INTEREST and that the depositor can reclaim the full value of the account according to the agreed upon procedures governing the account.

DEPOSIT ADMINISTRATION GROUP ANNUITY – A type of GROUP ANNUITY providing for the accumulation of contributions in an undivided fund out of which ANNUITIES are purchased as the individual members of the group retire.


ACT– Federal law that represents significant decontrol of federally regulated banks and savings institutions, including gradual phase out of limits on INTEREST RATES paid on passbook accounts.

DEPOSIT PREMIUM – The PREMIUM DEPOSIT paid by a prospective POLICYHOLDER when an APPLICATION is made for an INSURANCE POLICY. It is usually equal, at least, to the first month’s estimate PREMIUM and is applied toward the actual PREMIUM when billed.

DEPOSIT TERM INSURANCE – A form of TERM INSURANCE, not really involving a DEPOSIT, in which the first-year PREMIUM is larger than subsequent PREMIUMS. Typically, a partial ENDOWMENT is paid at the end of the term period. In many cases the partial endowment can be applied toward the purchase of a new TERM policy, or, perhaps, a


DEPRECIABLE LIFE – For tax purposes, the number of years over which the cost of an ASSET may be spread; for APPRAISAL purposes, the estimated useful life of an ASSET.

DEPRECIABLE REAL ESTATE (TAX)REALTY that is subject to DEDUCTIONS for DEPRECIATION. It generally includes PROPERTY used in a trade or business, or an INVESTMENT, subject to an allowance for DEPRECIATION under Section 167 of the INTERNAL REVENUE CODE.


DEPRECIATION – 1) A decrease in the VALUE of PROPERTY over a period of time due to wear and tear or OBSOLESCENCE. DEPRECIATION is used to determine the ACTUAL CASH VALUE of PROPERTY at time of LOSS; 2) A LOSS in REAL PROPERTY VALUE from any cause, either from within the PROPERTY (PHYSICAL DETERIORATION and FUNCTIONAL             OBSOLESCENCE) or         from    outside            the       property           (EXTERNAL OBSOLESCENCE).

DEPRECIATION (ACCOUNTING) – A charge against the reproduction cost of an ASSET for the estimated wear and OBSOLESCENCE DEPRECIATION may be physical, functional, or economic.

DEPRECIATION RECAPTURE – When REAL PROPERTY is sold at a gain and ACCELERATED DEPRECIATION had been claimed, the owner may be required to pay a tax at ordinary RATES to the extent of the EXCESS ACCELERATED DEPRECIATION. EXCESS DEPRECIATION on RESIDENTIAL REAL ESTATE after 1980 is RECAPTURED; all DEPRECIATION on RESIDENTIAL REAL ESTATE after it is RECAPTURED when an ACCELERATED method had been used, under section 1250 of the INTERNAL REVENUE CODE.

DEPRESSION – Economic conditions causing severe decline in business activity, reflecting high unemployment, excess supply, and public fear.

DEPTH TABLE – A chart indicating the reduced cost per square foot paid by a purchaser, as the PROPERTY is VALUED farther and farther back from the street side of the PARCEL. As greater quantities of LAND are purchased, the cost per front foot increases and the total cost increases, but the cost per square foot decreases, thus indicating a quantity discount.

DESCENT – The acquisition of PROPERTY by an heir when the deceased leaves no WILL.

DESCRIPTION – Formal depiction of the dimensions and location of a PROPERTY; generally included in DEEDS, LEASES, SALES CONTRACTS, and MORTGAGE contracts for REAL PROPERTY.

DESCRIPTIVE MEMORANDUM – A term used to describe an offering circular of PROPERTY or SECURITIES when a PROSPECTUS is not required.

DETACHED HOUSING – Residential buildings in which each DWELLING UNIT is surrounded by freestanding walls and is generally SITED on a separate LOT.

DEVELOPER – One who puts LAND to its most profitable use through the construction of IMPROVEMENTS.

DEVELOPMENT – The process of adding IMPROVEMENTS on or to a PARCEL of LAND. Such improvements may include drainage, UTILITIES, SUBDIVIDING, access, buildings, and any combination of these elements.

DEVISE – A gift of REAL ESTATE by WILL or last testament.

DEVISEE – One who inherits REAL ESTATE through a WILL.

DIAGNOSIS-RELATED GROUPS (DRGS) – System that reimburses health care providers fixed amounts for all care given in connection with standard diagnostic categories.

DIFFERENCE IN CONDITIONS INSURANCE (DIC) – “All-risks” POLICY that covers other perils not insured by basic PROPERTY INSURANCE CONTRACTS, supplemental to and excluding the COVERAGE provided by underlying CONTRACTS.

DILAPIDATED PROPERTY – Housing that has deteriorated or fallen into whole or partial  ruin thru neglect.

DIRECT CAPITALIZATION – Dividing the net operating income by an overall CAPITALIZATION RATE to estimate value.

DIRECT COSTS – Costs that are readily identified in the construction of profit.

DIRECTIONAL GROWTH – The location or direction toward which a city is growing.

DIRECTLY INVESTED PLAN – Also known as SELF-ADMINISTERED OR TRUSTEED PLAN – A plan funded through a FIDUCIARY, generally a bank but sometimes a group of individuals, which directly INVESTS the accumulated funds. Retirement payments are made from the fund as they fall due.

DIRECT LOSS – Financial loss that results directly from an INSURED peril.

DIRECTORS’ AND OFFICERS’ LIABILITY – The exposure of corporate managers to claims from shareholders, government agencies, and employees, and others alleging mismanagement.

DIRECT PLACEMENT – Sale of an entire issue of BONDS or stock by the issuer to one or a few large institution customers such as an INSURANCE COMPANY without trying to market the issue publicly.

DIRECT PREMIUMS WRITTEN – Also known as DIRECT WRITTEN PREMIUMSPROPERTY and CASUALTY INSURANCE PREMIUMS written (less return premiums), without any allowance for PREMIUMS for assumed or CEDED REINSURANCE.

DIRECT REDUCTION LOAN – Also know as INSTALLMENT LOAN – A LOAN, which calls for the payment of a fixed amount of PRINCIPAL each period, along with the INTEREST due on the unpaid PRINCIPAL balance.

DIRECT RESPONSE SYSTEM – A marketing method where INSURANCE is sold without the services of an AGENT. Potential customers are solicited by advertising in the mail, newspapers, magazines, television, radio, and other media.

DIRECT SALES COMPARISON APPROACH TO VALUE Also known as MARKET DATA APPROACH TO VALUE. The APPRAISAL method of estimating the MARKET VALUE of the PROPERTY by comparing it to similar PROPERTIES which have recently sold and making appropriate adjustments for differences in time, AMENITIES, location, and financing.

DIRECT WRITER – The industry term for a company which uses its own sales employees to write its policies. Sometimes refers to companies which contract with EXCLUSIVE AGENTS.

DIRECT WRITTEN PREMIUMS – Also known as  DIRECT PREMIUMS WRITTENPROPERTY and CASUALTY INSURANCE PREMIUMS written (less return premiums), without any allowance for PREMIUMS for assumed or CEDED REINSURANCE.

DIRT AND THE BRICKS AND STICKS AND THE RIGHTS OF THE BUNDLE – Also known as REAL ESTATE and REALTY – 1) In business,  the activities concerned with ownership and use transfers of the PHYSICAL PROPERTY; 2) the LAND and all things permanently attached to the LAND by man.

DISABILITY – A physical or a mental impairment that substantially limits one or more ACTIVITIES OF DAILY LIVING of an individual. It may be PARTIAL DISABILITY or TOTAL DISABILITY.

DISABILITY BENEFIT – 1) Periodic payments, usually monthly, payable to participants under some retirement plans, if such participants are eligible for the BENEFITS and become TOTALLY and permanently DISABLED prior to the normal retirement date; 2) a feature added to some LIFE INSURANCE POLICIES providing for WAIVER OF PREMIUM, and sometimes payment of monthly income, if the policy holder becomes TOTALLY and permanently DISABLED.

DISABILITY INCOME INSURANCE – A form of HEALTH INSURANCE that provides periodic payments to replace income when an INSURED person is unable to work as a result of illness, injury, or disease.


(OASDI) program. The covered person must be FULLY INSURED and have at least twenty quarters of COVERAGE out of the last forty, ending with the quarter in which the DISABILITY occurs. Fewer quarters are required for persons under age thirty.

DISAPPEARING DEDUCTIBLEDEDUCTIBLE in an INSURANCE CONTRACT that provides for a decreasing DEDUCTIBLE amount as the size of the loss increases, so that small claims are not paid but large losses are paid in full.

DISCHARGE IN BANKRUPTCY – The release of a bankrupt party from the obligation to repay DEBTS that were, or might have been, proved in a BANKRUPTCY proceeding.

DISCLAIMER – 1) A statement whereby responsibility is rejected; 2) renunciation of ownership of PROPERTY.

DISCLOSURE STATEMENT – A statement required by law, in which sellers of particular kinds of PROPERTY, or under certain circumstances, must reveal specified information to potential buyers.

DISCOUNT – The difference between the face amount of an obligation and the amount advanced or received.

DISCOUNT BROKER – A licensed BROKER who provides BROKERAGE services for a lower COMMISSION than that typical in the market. Generally, the services provided are less extensive than those of a full service BROKER or may be unbundled, so that a client may contract for specific services. Many discount brokers charge a flat fee rather than a percentage of the selling price.

DISCOUNTED CASH FLOW – Also known as CASH FLOW ANALYSIS – A method of INVESTMENT ANALYSIS in which anticipated future cash income from the investment is estimated and converted into a RATE OF RETURN on initial investment based on the TIME VALUE OF MONEY. In addition, when a required RATE OF RETURN is specified, a NET PRESENT VALUE of the INVESTMENT can be estimated.

DISCOUNTED LOAN – One that is offered or traded for less than its FACE VALUE.

DISCOUNTING – The process of estimating the present value of an INCOME STREAM by reducing expected cash flow to reflect the TIME VALUE OF MONEY. Discounting is the opposite of compounding. Mathematically they are RECIPROCALS.

DISCOUNT POINTS – Charges made by a lender to increase the EFFECTIVE RATE of interest or yield on a LOAN. For the party paying the POINTS, each point equals one percent of the loan amount. For the lender benefiting from the POINTS, each point received increases the lender’s YIELD on the LOAN by approximately one eighth of one percent.

DISCOUNT RATE – A COMPOUND INTEREST RATE used to convert expected future income into a present value; the RATE charged member banks that borrow from the Federal Reserve System.

DISCRIMINATION – Applying special treatment to an individual solely on the basis of the person’s race, religion, or sex.

DISINTERMEDIATION – The rapid withdrawal of funds from savings accounts, which are then placed in corporate and government INVESTMENTS.

DISMEMBERMENT – Loss of body members (limbs), or use thereof, or loss of sight due to injury.

DISMEMBERMENT INSURANCE – A form of HEALTH INSURANCE that provides payment in case of loss by bodily injury of one or more body members (such as hands or feet) or the sight of one or both eyes.

DISPOSABLE PERSONAL INCOME – The personal income less personal tax and nontax payments. It is the income available to people for spending and saving.

DISPOSSESS PROCEEDINGS – The legal process by a LANDLORD to remove a TENANT and regain possession of PROPERTY.

DISTINGUISHED REAL ESTATE INSTRUCTOR (DERI) – A real estate teacher, typically of licensing preparation courses, who has been designated by the REAL ESTATE EDUCATORS ASSOCIATION.

DISTRAINT – The legal right of a LANDLORD to seize a TENANT’S PERSONAL PROPERTY to satisfy payment of back RENT.

DISTRESSED PROPERTYREAL ESTATE that is under FORECLOSURE or impending FORECLOSURE because of insufficient INCOME production.

DIVERSIFIABLE RISKRISK that can be eliminated by investors by holding diversified portfolios.

DIVIDEND – 1) A return of part of the PREMIUM on PARTICIPATING INSURANCE to reflect the difference between the PREMIUM charged and the combination of actual mortality, expense and INVESTMENT experience. Such PREMIUMS are calculated to provide some MARGIN over the anticipated cost of the INSURANCE protection.; 2) an amount returned to a POLICYHOLDER by an INSURANCE COMPANY out of its earnings; 3) in capital stock companies, a share of the profits distributed to STOCKHOLDERS.

DIVIDEND ADDITION – An amount of paid-up INSURANCE purchased with a POLICY DIVIDEND and added to the FACE AMOUNT of the POLICY.

DOCTRINE OF REASONABLE EXPECTATIONS – A legal doctrine that holds POLICIES will be interpreted according to how a reasonable person who is not trained in the law would expect.

DOCUMENTARY EVIDENCE – Evidence in the form of written or printed-papers.

DOCUMENTARY TRANSFER TAX – A tax on the sale of REAL PROPERTY, usually based on the sale price and paid on or before the recordation of the DEED.

DOLLAR THRESHOLD – In no-fault auto insurance states with the dollar threshold, it prevents individuals from suing in tort to recover for pain and suffering unless their medical expenses exceed a certain dollar amount.

DOMESTIC INSURER – An INSURANCE COMPANY is a domestic company in the state in which it is incorporated.

DOMICILE – The state in which one makes his or her PRINCIPAL RESIDENCE.

DOMINANT ESTATE – Also known as DOMINANT TENEMENT – The PARCEL of REAL PROPERTY to which the EASEMENT runs and which benefits from the EASEMENT.

DOMINANT TENEMENT – Also known as DOMINANT ESTATE – The PARCEL of REAL PROPERTY to which the EASEMENT runs and which benefits from the EASEMENT.

DONEE – A recipient, as of a gift.

DONOR – 1) One who gives.; 2) the person making a gift.

DORMER – 1) A window projecting through a sloping roof; 2) the roofed structure containing such a window.

DOUBLE DECLINING BALANCE – A method of DEPRECIATION for tax purposes whereby twice the STRAIGHT-LINE RATE is applied to the remaining depreciable balance of an ASSET.

DOUBLE INDEMNITY – 1) A POLICY provision usually associated with death, which doubles payment of a designated BENEFIT when certain kinds of accidents occur; 2) payment of twice the POLICY’S normal BENEFIT in case of loss resulting from specified causes or under specified circumstances.

DOUBLE TAXATION – Taxation of the same income at two levels.

DOWER – The COMMON LAW interest of a wife in the ESTATE of her deceased husband. It has been abolished in most states and replaces with the Uniform Probate Code.

DOWN PAYMENT – The amount one pays for PROPERTY in addition to the DEBT incurred.

DOWNZONING – The act of REZONING a TRACT of LAND for a less intensive use than the existing use or permitted use.

DRAGNET CLAUSE – A provision in a MORTGAGE that pledges several PROPERTIES as COLLATERAL. A DEFAULT on one MORTGAGE constitutes a DEFAULT on the one with the dragnet.

DRAMSHOP LAW – Also known as LIQUOR LIABILITY LAW – Law that imputes

NEGLIGENCE to the owner of a business that sells liquor in the case that an intoxicated customer causes injury or property damage to another person. Usually excluded from general LIABILITY POLICIES.

DRAW – A periodic advance of funds from a construction lender to a DEVELOPER.

Construction loans generally provide for a schedule of draws, either at regular intervals during construction or pending construction of specific segments of the structures.

DREAD DISEASE INSURANCEINSURANCE providing an UNALLOCATED BENEFIT, subject to a maximum amount, for expenses incurred in connection with the treatment of specified diseases, such as cancer, poliomyelitis, encephalitis and spinal meningitis.

DRIVE-BY APPRAISALVALUE ESTIMATE prepared without the benefit of an interior INSPECTION. May not confirm to USPAP standards.

DRIVER EDUCATION CREDIT – Student discount or reduction in PREMIUM amount for which young drivers become eligible on completion of a driver education course.

DUAL AGENCY – The REPRESENTATION of two or more PRINCIPALS in one transaction by the same agent, an unethical and illegal activity unless fully disclosed.

DUAL CONTRACT – The illegal or unethical practice of providing two different CONTRACTS for the same transaction.

DUE DILIGENCE –  The care that a reasonable person exercises to avoid harm to another persons PROPERTY.

DUE-ON-SALE CLAUSE – A provision in a MORTGAGE that states the LOAN is due upon the sale of the PROPERTY.

DUMMY – An individual or entity that stands in the place of the PRINCIPAL to a transaction.

DUPLEX – Two dwelling units under one roof; an APARTMENT having rooms on two floors.

DUPLICATION OF BENEFITS – Overlapping or identical COVERAGE of the same, INSURED under two or more HEALTH PLANS, usually the result of CONTRACTS of different INSURANCE COMPANIES, service organizations, or PRE-PAYMENT plans; also known as MULTIPLE COVERAGE.

DURESS – Also known as UNDUE INFLUENCE – The threats or intimidation used against someone to force them to act against their will.

DUTCH AUCTION – A bidding process in which the asking price is lowered gradually until someone places a qualifying BID.

DUTCH COLONIAL – An early American style, moderate sized, two- to two and a half story house with a GAMBREL ROOF and EAVES that flare outward.


DWELLING PROPERTY 1 – Also known as BASIC FORMPROPERTY INSURANCE POLICY that INSURES the DWELLING at ACTUAL CASH VALUE, other STRUCTURES, personal property, FAIR RENTAL VALUE, and certain other COVERAGES. Covers a limited number of perils.

DWELLING PROPERTY 2 – Also known as BROAD FORM – PROPERTY INSURANCE POLICY that insures the dwelling and other STRUCTURES at REPLACEMENT cost. It adds additional COVERAGES and has a greater list of covered perils than the DWELLING PROPERTY 1 POLICY.

DWELLING PROPERTY 3PROPERTY INSURANCE POLICY that covers the DWELLING and other structures against direct physical loss from any peril except for those perils otherwise excluded. However, PERSONAL PROPERTY is covered on a named-perils basis.

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