Glossary

The discount rate is the rate of interest at which a firm could earn income given a variety of potential scenarios.

Discovery is the investigation of the facts of a claim or the alleged proximate cause of an injury.

The discovery cover is coverage for losses that are discovered during the term of a reinsurance treaty, regardless of when they occurred.

Discovery period is the period of time after expiration allowed an insured to identify and report losses occurring during the period of a policy or a bond.

Discovery provisions permit insureds to report incidents or circumstances that may result in claims in the future, found mainly in professional liability insurance policies written with claims-made coverage triggers.

The discovery rule provides that the statute of limitations on bringing a claim does not begin to run until the date on which a claimant actually discovers (or should have discovered) an injury or loss—rather than on the date when the wrongful act giving rise to the injury or loss took place.

Discrimination is the act or process of evaluating insurable risks and determining premiums on the basis of likelihood of loss.

Disease loading is an additional premium charge included in certain workers compensation classification code rates that reflects specific disease hazards relative to the operations involved and therefore the increased exposure to loss.

Disintermediation risk refers to the potential that policyholders may relinquish policies due to rising interest rates.

In accident and health insurance policies, dismemberment encompasses loss of limbs or sight.