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Glossary - D
DEFICIT CLAUSE
A clause providing for the carry-forward or transfer of losses under a reinsurance contract from one accounting period to another and for their being set off against the next periods profit.

DEPOSIT PREMIUM (PROVISIONAL PREMIUM)
A premium that is payable at the inception of a reinsurance contract and in respect of which an adjustment premium is due at an agreed later date. Minimum deposit premium is a minimum premium paid under excess-of-loss reinsurance contracts.

DEPOSITS RETAINED BY A CEDANT (RESERVES)
Amounts due to reinsurers under a reinsurance contract, but retained by a cedant to secure payments by reinsurers.
Direct insurer (also: primary insurer)
company which accepts risks in exchange for an insurance premium and which has a direct contractual relationship with the policyholder (private individual, company, organisation).
 
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