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Abbott-Langer & Associates Business Glossary

This glossary of business definitions contains over 2,000 business terms used in compensation and benefits administration. Continually updated, this specialized business dictionary focuses on definitions of Human Resources terms and business terms.

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Danger Pay

Usually paid in addition to a hardship premium, danger pay is often given to expatriates who are required to live and work in a foreign country where a civil war, revolution, or some kind of terrorism could threaten the physical well-being of the expatriate. The State Department sets the rate and establishes where and when it is needed. The rate never surpasses 25% of the base salary. However, companies are free to exceed this rate if they so wish.

Daubert Hearing

At a Daubert hearing, a judge ascertains the relevance and reliability of an expert's opinion and the opinion's underlying data and methodology. This is done before the opinion is presented to a jury. It is meant to weed out junk science from expert witness testimony.

Day Care Centers

One way to assist working parents is for employers to provide onsite day care for employees’ children.”

Death Benefit Payments

This is the amount to be paid when the person insured under a life insurance policy dies. (It does not include adjustments for monies owed.) The first $5,000 of this amount is not taxed. This may also represent the amount payable to the beneficiary of a retirement plan upon the death of the insured employee.

Death Claim

This is the process of obtaining a request for payment under the terms of a life insurance policy.

Debit

Several definitions: 1) An accounting entry resulting either in an increased amount of assets or a decreased number of liabilities. (2) In terms of insurance and underwriting, debits represent factors that have a negative effect on an individual's mortality rating.

Debits Use Of Funds

On a CASH FLOW STATEMENT, a debit use of funds' is a cash expenditure of receipts.

Debt Amounts Owed

Also known as liabilities, these are often divided into current liabilities (which are due within a year of the date entered on the balance sheet) and non-current liabilities (which are due more than a year after the date on the balance sheet).

Debtor-Creditor Groups

This is an organization made up of lending companies (such as banks, credit unions, finance companies, etc.) and their debtors.

Debts Paid By Employer

An employer who pays an employee's debt must include the amount as income to the employee for tax purposes.

Deciles

Represents one of nine points, which divides a series of ranked scores into equal parts. Each part, therefore, represents 1/10th of the series.

Decreasing Term Insurance

This is a type of life insurance where the amount of coverage decreases over the duration of the coverage.

Decrement

The process of gradually becoming less. In insurance terms, this is the reduction, in numbers of participants in an employee benefits plan (usually caused by such factors as retirement, disability, death or termination).

Deductible

Several definitions: 1) Amount of expenses that the insured party must pay before receiving any benefits from the insurance company. (2) An item or expense that is taken away from an individual's gross income in order to reduce the amount of taxable income (e.g. mortgage interest, state taxes, or business expenses that are not reimbursed and charitable contributions). See also CORRIDOR DEDUCTIBLE, INTEGRATED DEDUCTIBLE, and PER CAUSE DEDUCTIBLE.

Deductible Limit

This usually refers to the maximum amount of money that a family must pay before the insurance company starts to pay. If a family's health policy requires a $300 deductible, and there are five people in the family that is a total deductible of $1500. To avoid this, insurance companies will usually have a family deductible limit, which may be equal to two times the individual deductible (to lessen the burden on the family). When this limit is reached, the health coverage kicks in.

Deferral Date

Usually, this is a date after the exact premium due date (typically it is on the one year anniversary of the policy), when the next year's premium are deemed to be due.

Deferral Options

An option usually available to an individual, where they may defer compensation and the deferred amount is used to reduce the option price of share options by a particular amount. The rest is to be paid at the time when the option is exercised.

Deferred Annuity

A series of payments in which the very first payment is deferred.

Deferred Benefits

Non-monetary compensation that an employee may be entitled to at a future date, providing that he/she has accumulated enough, credited years of service (for vesting purposes). These usually include, pension plans, 401(k) plans and stock option plans.

Deferred Compensation Plan

Established by an employer in order to provide benefits to employees at a future date (e.g. upon the employee's retirement). Employers can provide future benefits to key employees through these nonqualified deferred compensation arrangements without the compliance costs or nondiscrimination restrictions placed on tax-qualified plans. Payable at some point in the future, these may be any number of compensation payments. May include voluntary or mandatory deferral of earned incentives.

Deferred Incentives

Typically a part of an executive compensation package whereby the reward for consistent performance is a financial incentive payable in the future.

Deferred Life Annuity

This is a term used to describe a deferred annuity that has a series of payments, which may only be made if a specific person is alive.

Deferred Premium Arrangement

This is an arrangement usually only granted to companies with excellent credit ratings. It allows the normal organization insurance policy's grace period to be permanently extended.

Deferred Profit Sharing Plan (DPSP)

Applicable in Canada, this is a species of profit sharing whereby the employer's contribution up to a specific limit is tax deductible for the employer and tax deferred for the employee. The employee may withdraw the benefit before his retirement. Investment possibilities for funds from such plan are limited.

Deficit Reduction Act Of 1984 (DEFRA)

This statute affects benefits in many ways. It prevents most taxable benefits from being offered as part of a flexible benefits plan. In terms of health benefits, it makes it mandatory for employers to treat an employee spouse who is over the age of 65, the same as an employee spouse under 65.

Defined Benefit Formula

This is a formula used to determine the benefits due each participant, upon retirement, in a defined benefit plan. The benefit amount is often related to the years of participation in the plan.

Defined Benefit Plans

There are basically two kinds of retirement plans: the defined benefit plan and the defined contribution plan. The defined benefit plan is one in which an employer comes up with a system that outlines how much an employee who is retiring will receive on a monthly basis for the rest of his/her life. The following are all taken into consideration when calculating the retirees' monthly stipend: years of employment with the employer, age and salary.

Defined Contribution Formula

This is a formula used to establish the amount of contributions made toward a group benefit plan on a yearly basis. This contribution is typically a designated percentage of the participant's salary.

Defined Contribution Plans

There are basically two kinds of retirement plans: the defined benefit plan and the defined contribution plan. The defined contribution plan is one in which an employer deposits a specific amount into an individual account for each employee. Accounts such as these are not required to specify how much is to be deposited into the account on a yearly basis, but they must specify how it is to be done. These kinds of plans are also known as INDIVIDUAL ACCOUNT PLANS.

Demotion

When an employee is assigned to a position lower (in the company's hierarchy) than the employee’s current position. This may be as a result of poor performance, company re-organization, or even at an employee's request. Compare with PROMOTION or a lateral move.

Demutualization

The process of converting a stock insurance company to a mutual insurance company, or vice versa.

Dental Care Benefits

Dental Care Benefits are considered an aspect of health care benefits, although insurance plans ordinarily separate the two. Dental insurance usually covers preventative care and treatment of teeth, gums, and the mouth. Plans might also cover orthodontia, X-rays, and cosmetic work.

Dental Maintenance Organization

An organization like an HMO, but that provides only dental care.

Dental Plan Organization (DPO)

Similar to the HMO, this is an organization that provides dental care only.

Dentist-Consultant

A licensed dentist who works for the insurance company, advising them as to the suitability of dental treatment. A licensed dentist must understand the underwriting objective of the dental plan he/she is advising.

Department Compa-Ratio

The compa-ratio identifies exactly where an employee falls in their salary range. It is calculated by dividing the employee's annual pay by the midpoint of the salary range.

Dependent Care / Dependent Care Assistance

Employers may help to meet employees' child and other dependent care needs through a qualified dependent care assistance program, whereby employees are reimbursed for dependent care expenses (either directly or indirectly).

Dependent Care Referral Programs

For these programs, employers collect sources from within the community of available day care options and presenting these to employees who need help finding day care.

Dependent Care Reimbursement Account

Many flexible benefit programs include flexible spending accounts, which give employees the opportunity to set aside pretax funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer contributions, or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and copayments, or pay for child care benefits with the money in their FSAs.

Dependent Care Spending Account

Many flexible benefit programs include flexible spending accounts, which give employees the opportunity to set aside pretax funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer contributions, or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and copayments, or pay for child care benefits with the money in their FSAs.

Dependent Life Insurance

This is a group life insurance policy that is made available, on an elective basis, to cover dependents of group members. It is usually sold in small amounts intended to cover final expenses.

Dependent Variable

This is a term used to describe something that must be numerically measured during a test or investigation, in order to answer a problem.

Dependents

A word used to describe a person who is reliant upon another (usually, the head of a household) for financial support. A dependent is usually a child, spouse, parent, or sibling of the employee. In some companies, the definition of a dependent has been extended to include a significant other and, on occasions, son or daughter-in-law.

Deposit Administration Contract

A method of funding a pension plan in which the sponsor of the plan places the insurance company's assets in a general account. Upon the resignation of a participant, the insurer retrieves enough funds from the general account to pay the plan participant an annuity. This contract typically protects the sponsor of the plan against loss and guarantees minimum returns. May be compared with IMMEDIATE PARTICIPATION GUARANTEE (IPG) CONTRACT.

Deposit Term Insurance

Not really involving a deposit, this is a kind of term insurance where the premium for the first year is greater than that payable in subsequent years.

Deposition / Depositions

In a deposition, opposing lawyers have the opportunity to review material to be presented and to ask preliminary questions regarding a case. These sessions are transcribed, so you should worry less about presentation and more about the words that are to be transcribed in depositions.

Depreciation

Used to describe a decline in value in any given property through wear and tear. Contrast with APPRECIATION.

Derivative Security

Any security (stock options, warrants, convertible securities or other) that may become a share of common stock.

Determination Letter

Provided by the IRS (Internet Revenue Service), this is a letter documenting the full compliance (with its rules) of a pension plan.

Deviated Rate

Group insurance that adheres to rates put in force by a state insurance commissioner and sometimes offers lower rates than those recommended in certain areas. The company is said to have 'deviated' from the bureau rate for that area. Typically this is based on the group's claim experience.

DHMOs

Give employers access to providers offering discounted services. DHMOs are becoming more popular amongst employers as a way to increase dental benefits while containing costs.

Diagnostic Related Groups (DRGS)

A system of health benefit payment, where the payments are based on the individual's diagnosis as opposed to the actual number of medical services received.

Diary / Log

A method for gathering detailed information about a job by requiring the job incumbent to keep track of his or her specific activities during a determined period of time.

Dictionary Of Occupational Titles (DOT)

Based on over 75,000 job analyses, this dictionary was developed and produced by the Department of Labor. It defines over 20,000 jobs. Supposedly, the DOT has been replaced by O*Net, a new method of defining jobs, adopted by the Federal Government. The O*Net, however, is held in some contempt by practitioners, due to its complexity.

Differential

In expatriate compensation, this is used to describe an amount of money used to compensate for the discrepancies in costs between the home and the assignment locations.

Diluted Earnings Per Share

If all the convertible shares were to be traded in for stock, this would be the value/earnings per share. It is a more accurate reflection of a company's earnings.

Dilution (Percent)

A decrease in the equity of a share of stock due to additional shares being issued.

Dining Facilities

In order to keep employees on-site for lunch, many employers provide a dining facility to employees.

Direct Observation

In order to thoroughly understand a job content, this method of job analysis involves the direct observation of employee(s) while they perform their duties. This method is usually used when analyzing production type jobs, which are very repetitive in nature.

Direct Pay / Cash Compensation

Payments made to employees in direct exchange for their contributions to an organization (does not include bonuses, stock options, life insurance, 401K or other benefits).

Direct Response Distribution System

Also known as 'Direct response marketing', this is a way in which insurance companies sell policies directly to customers. It relies on media advertisements, telephone solicitations, and direct mail. By adopting this type of marketing, insurance companies bypass insurance agents.

Direct Response Marketing

This is a way in which insurance companies sell policies directly to customers. It relies on media advertisements, telephone solicitations, and direct mail. By adopting this type of marketing, insurance companies bypass insurance agents.

Direct Seller

In terms of sales compensation, this is one whose sole purpose or objective is to obtain an order from the end user.

Directly and Closely Related Work

Under FLSA, this work may include physical tasks and menial tasks that arise out of exempt duties, and the routine work without which the exempt employee’s exempt work cannot be performed properly. Work ‘‘directly and closely related’’ to the performance of exempt duties may also include recordkeeping; monitoring and adjusting machinery; taking notes; using the computer to create documents or presentations; opening the mail for the purpose of reading it and making decisions; and using a photocopier or fax machine. Work is not ‘‘directly and closely related’’ if the work is remotely related or completely unrelated to exempt duties. (Section 541.703)

Director And Officer (D&O;) Liability Insurance

Additional insurance employed by companies in order to protect members of the board of directors and other key officers from law suits for various kinds of malpractice and or oversight.

Directors Fees

Directors fees are fees received by Directors from a Corporation for services rendered. In a situation where a Director is not an actual employees of a company, the fees are considered to be self employment income for tax purposes and must be reported to the IRS.

Directors Of Corporations

May be internal or external persons elected by shareholders. It is the Board's responsibility to determine company policies, elect the president, vice president, and all other operation officers.

Disability

A condition rendering an insured party incapable of performing his or her duties.

Disability Benefits

These are usually paid monthly to an insured who is rendered unable to work prior to his or her normal retirement date. Includes both long and short-term disability benefits.

Disability Buy-Out Insurance

The purpose of this insurance is to provide funds to a business or to a partnership so that it may purchase the interests of a partner or a stock holder who is long-term disabled.”

Disability Income Insurance

A kind of health insurance designed to provide periodic payments (usually monthly) in order to compensate insured people for a percentage of their income lost as a result of the disability. Also known as loss of time insurance. Compare with LONG-TERM and SHORT-TERM DISABILITY INCOME INSURANCE.

Disability Table

Several definitions: (1) A calculation of the probability of becoming disabled at each age. (2) A calculation of the number of people who remain disabled at each age and the length of the disability.

Disability Under Ada

Under the Americans with Disabilities Act of 1990 a disability is defined as a physical or other impairment, which substantially affects a person's ability to carry out one or more major life activities. In order for it to be said that a disability exists, it has to in fact substantially limit a major life activity. It is not enough that it could or might limit such an activity if corrective measures are not taken. A person whose impairment is not corrected by medication (or by other measures), therefore does not have an impairment as defined by the ADA.

Disabled / Disability

Under the Americans with Disabilities Act (ADA), employees are considered to be disabled if their "earning or productive capacity" in the occupation in which they engage is impaired by a physical or mental disability, including alcoholism, or drug addiction.

Disabled Life Annuity

This is a term used to describe a series of payments made to an insured party, which is contingent upon that person being both alive and disabled.

Discharge Provision

This is a part of the small estates statute, which frees an insurance company from liability that may arise under an insurance policy if it were to pay the proceeds to an insured's estate.”

Disclaimer Statement

In general legal terms, a disclaimer is a term used to describe a denial or repudiation of responsibility for an act or thing. May also be an attempt to limit liabilities. Most contracts contain a disclaimer clauses of sorts. In an employment contract, a disclaimer may take the form of a clause stating that the job description provided is not conclusive (For example, it may say: '...to perform other duties as needed.').

Disclosure Requirements

Employers are required, under the Employee Retirement Income Security Act (ERISA), to disclose to employees information about benefit plan provisions and legal protections provided under ERISA.

Discontinuity Index

A test that is required by the NAIC Model Life Insurance Disclosure Regulation. Its objective is to pinpoint instances in which policy illustrations have been tampered with, so that they show an unrealistic/untrue progression of premiums, dividends and benefits.

Discount Rate

May also be known as rediscount rate or bank rate. This is the interest rate charged by a central bank for reserve fund loans to other financial institutions. Initially this was an actual discount (an interest charge withheld out from the amount loaned); but now it is an interest charge in its own right, despite the fact that it is still known as discount rate.

Discount Stock Option

Rights to a stock option at a price less than 100 percent of fair market value on date of grant.

Discounted Cash Flow

Calculation of cash flow anticipated in the future using an assumed interest rate in order to determine the current cash value of the future flows.

Discounted Restricted Stock Purchase

The purchase, by an employee, of restricted stock at a price that is below market rate.

Discounts On Merchandise And Services

Ordinarily, any benefit provided to an employee is taxable unless specifically excluded by Statute. When specifically excluded, it is known as a discount.

Discrete

This is a term used to describe a kind of performance cycle, whereby the performance of an employee is limited to a particular performance time period without any relation or reference to past or future performance time periods. As an example: 'Each month is discrete, because performance is measured on its own'.

Discrete Data

In terms of statistics, this describes variables that assume only particular, distinct values and that are not continuous. For example, salary levels and performance classifications are discrete variables, whereas height and weight are continuous variables.

Discretionary (Informal) Bonus Plan

A bonus plan that is completely at the discretion of management. Management decides on the total amount of bonus to be dispersed, and the percentage each employee is to receive after a performance period. These types of bonuses have no pre-established formulas nor are there any guarantees attached.

Discrimination

Disparate or unequal treatment of employees unrelated to qualifications, skills, or performance (e.g., race, religion, gender etc.). (1) The Civil Rights Act of 1964, the Age Discrimination and Employment Act of 1967 (ADEA), and the Equal Employment Opportunity Act of 1972 all forbid this kind of disparate treatment of employees.

Discrimination Laws

Since the 1960's a series of anti-discrimination laws have been enacted. The major one has been the Civil Rights Act of 1964, as amended in 1972 and 1991. Title VII of that Act covers employment.

Discrimination Testing

This is a method used to determine whether benefits within a plan are being provided fairly and equally to a wide range of employees.

Disintermediation

This is the process whereby money is removed from an agent for the purpose of earning a higher yield elsewhere, typically with another financial agent / intermediary. Historically, disintermediation, has been a problem source for life and health insurers especially during periods of economic depression and or high inflation.

Disparate Treatment

The treatment of members of a protected class of people (under Title VII of the Civil Rights Act or the Equal Pay Act), which is inconsistent with the provisions of the Civil Rights Act or the Equal Pay Act. This would include any company policy or practice that is deemed to be inconsistent with either of the Acts.

Disqualified Person

A disqualified person is one who in the past five years was in a position to exercise substantial influence over the affairs of a tax-exempt organization. This person may be subject to IRS fines under INTERMEDIATE SANCTIONS regulations.

Disqualifying Disposition (of an Incentive Stock Option ISO)

This is a term used to describe the premature sale or disposition of shares (in other words when the required holding period is not met). When this occurs, the ISO is taxed at the regular rate.

Distance Learning Center (DLC)

The ERI Distance Learning Center (DLC) provides compensation and benefit courses. Online education lets you attend class in your home, your office, or while traveling - 24 hours a day, 7 days a week. All you need is a computer with an Internet connection. Each course examines a topic used daily by HR professionals. The DLC offers downloadable course materials, interactive self-study exercises, instantly graded exams, and the ability to track credits and print completion certificates. Courses are free, and continuing education credit costs just $19 per certificate. DLC courses are approved for PHR/SPHR, CBP/CCP/GRP, CPE, JCA, CLE, and CE credit. To enroll, go to www.eridlc.com and click on Enroll Now! at the top of the page.

Distress Termination

A pension plan that is under funded and discontinued by a company. Contrast with STANDARD PLAN TERMINATION. Compare with VOLUNTARY and INVOLUNTARY PLAN TERMINATION.

Distribution Expenses

This is a term used to describe the expenses incurred while making insurance products available to the public (typically, these include the cost of printing, postage, telecommunication expenses, sales representative wages etc.).

Distribution System

In terms of insurance, this is a term employed to describe all the companies and people involved with getting the product from insurance companies to customers (e.g., those involved with all the necessary marketing activities).

Distributions

Where benefits are concerned, this is a word employed to describe any payments made to a beneficiary / participant (e.g., the disbursements of profits to shareholders, interests earned, or dividends.) May also be used to describe payments from a pension plan).

Distributive Justice

The theory that people involved in an exchange are most happy if the relationship between the outcomes and inputs is the same all parties. This theory is attributable to G.C.Homans and forms the basis for the equity theory.

Distributor / Wholesaler

These are the 'middle men' in an indirect channel who buy products in bulk for the sole purpose of re-selling them.

Divergent Data

Measurements that move apart from the norm. They move ahead of the common point or fail to approach the limit of a distribution.

Divestiture

A transaction by a company, which disposes of, or sells an asset owned by a company or a part of the business. Depending on the circumstances, may also be known as spin-off.

Dividend / Dividend Payment

Several definitions: 1) In terms of investments and shares, this is a distribution to shareholders of earnings. Typically this distribution is made on a quarterly basis in the form of cash or stocks. The amount to be distributed is decided upon by the B

Dividend Accumulations

An option made available to the policyholder of a life insurance policy, whereby he or she may leave their dividends with the insurer. Doing so often results in an increased amount of interests earned from the insurer's investments.

Dividend Expenses

This represents the cost of maintenance of each policy during the course of the current year. The insurance company calculates this by using the dividends owed to policy owners.

Dividend For Organization Insurance

This is the amount to be reimbursed to the insured of all or a part of the excess of premiums paid (e.g., premium not needed by the insurer to pay claims, establish reserves, and cover expenses).

Dividend Interest Rate

Used to calculate dividends owed to policyowners, the dividend interest rate is the actual rate of earnings on an insurer's investments.

Dividend Options

This is a term used to describe the several possibilities that a policyowner has to choose from when receiving a share of the company's surplus. See and compare with AUTOMATIC DIVIDEND OPTION, CASH PAYMENT OPTION, DIVIDEND ACCUMULATIONS, and PREMIUM REDUCTION OPTION.

Dividend Rate Of Mortality

This is the term used to describe the mortality rate being experienced by the insurance company on the policies that it has sold. May also be described as the MORTALITY RATE for a particular age that the insurance company decides to use to calculate the dividends owed to the policyowners.

Divisible Surplus

The part of an insurance company's earnings that is to be disbursed among the owners of the company's policies. See SURPLUS.

Divorce

A divorce of an employee can affect that person's benefits. The ex-spouse has rights to retirement benefits accrued during the time of the marriage. The ex-spouse also may apply for health benefits under COBRA. If there are children, then there are payments for child support, which may be enforced through garnishment.

Doctrine Of Reasonable Expectations

This is a doctrine applied by the courts, where (even though the policy does not expressly lay it out) the reasonable expectations of policyowners and beneficiaries will be upheld.

DOL

U.S. Department of Labor.

Dollar Value of Taxable Benefits

In general, the value of a benefit to an employee for tax purposes is the cost incurred by the employer in providing that benefit. This cost must include all taxes the employer pays in providing the benefit, but it is the net cost (as when the employee pays a portion of the cost).

Domestic Corporation

A company located in and doing business in the state in which it was incorporated. Compare with FOREIGN CORPORATION and ALIEN CORPORATION.

Domestic Partners

Some organizations recognize, as a family unit for benefit purposes, committed relationships between two unrelated people (whether of the same or opposite sex). These relationships are similar to, but which does not involve, an official marriage.

DOT

U.S. Department of Labor's Dictionary of Occupational Titles provided the basis for many job descriptions still in use today. The latest version of the DOT has 12,761 occupations, but many are considered outdated and incomplete. That’s because the last full-scale review and rewrite of the DOT was in 1977, so it does not take into account today’s economy, especially in high-tech fields. To view DOT descriptions, see http://www.oalj.dol.gov/libdot.htm, or use ERI's Platform Library and select Resources I Immigration Data I DOT Data. To find out about ERI's update to the DOT, the enhanced Dictionary of Occupational Titles, see www.eri-edot.com.

Double Declining Balance Depreciation

A depreciation method, whereby an accelerated depreciation is noted as expense during the first year and then the depreciable balance is reduced by an exact percentage that reflects the acceleration.

Double Indemnity

A type of death benefit policy that, if an insured's death is accidental / unnatural, pays an additional benefit that is equal to the basic benefit. Also known as accidental death benefit (ADB).

Double Taxation

The profits of any business are subject to corporate income tax. When any portion of these profits is distributed to stockholders, the distribution is also taxed as income to the stockholder. In most people’s eyes, this is a case of double taxation.

Dow Jones Industrial Average (DJIA)

The most established and most widely watched stock index in the world. The Dow, as it is most commonly known, includes 30 stocks (which typically are stocks of only the highest quality of common stocks listed on the New York Stock Exchange). The Dow is very often considered to be a good indicator as to how the entire market is fairing. However, because the Dow only includes 30 stocks, there are some who don't necessarily consider it to be a reliable barometer with which to measure the entire stock market. In recent times wider, more all-encompassing indexes are also commonly watched.

Downgrading

The lowering of status, such as the lowering of a job to a lesser job grade or pay to a lower pay level.

Downsizing

The reduction of the number of employees in the work force. This is usually an effort made by a company to reduce or eliminate inefficiencies or duplication of efforts.

Draw

A cash advance against future performance. May be recoverable or non-recoverable.

Dread Disease Policy

A type of health insurance policy that covers only expenses incurred by treatment for specific diseases named in the policy (e.g. cancer). See LIMITED COVERAGE POLICY.

Drinking Criticism

In terms of underwriting, used to describe evidence that the abuse of alcohol or that alcoholism exists.

Drug Abuse

Employees, who have been convicted of a felony drug offence, must be disciplined by their employers, per the Drug-Free Workplace Act (e.g. of discipline would be the completion of a drug abuse rehabilitation program).

Drug-Free Workplace Act of 1988

The Drug-Free Workplace Act of 1988 requires most federal government contractors and federal grantees to take specific steps to ensure a drug-free workplace. The law requires contractors to: 1. Develop and publish a policy statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the workplace. 2. Establish a drug awareness program that tells employees about available drug counseling, rehabilitation, and the Employee Assistance Program (EAP), if the employer offers one. 3. Impose sanctions on employees who are convicted of a criminal drug offense, or require them to participate satisfactorily in a drug abuse assistance or rehabilitation program.

DSOS

Operate much like medical management service organizations, where a management company buys dentists' practices and provides them with administrative support.

Dual Registration

When a registered representative is licensed with more than one broker, he or she is said to have a dual registration.

Dual-Choice Provision

The Health Maintenance Organization Act of 1973 states that employers with more than 25 employees and who meet a certain criteria, must offer a federally qualified HMO as an alternative to other more common health plan.

Due Diligence Process

Due diligence is an indispensable part of the acquisition process, and therefore, investment. The objective of due diligence is to establish the financial and operating stability of the company being acquired. The due diligence process involves a diverse group of experts (lawyers, accountants, engineers, real estate professionals, etc.) who must examine / evaluate data and assess the property being acquired for price affecting conditions.

Dues And Membership Fees

Organizations may choose to pay membership dues to chambers of commerce or other business or professional groups that employees join as a consequence of their employment. Conversely, organizations may be required under a collective bargaining agreement to collect union dues or assessments from employees' pay, and turn the proceeds over to the union.

Duplicate Coverage Inquiry (DCI) Form

I n the United States, when a health insurance company receives a claim, this is the form it fills out and sends to another insurance company. The goal is to determine whether the second company also covers the claim received.