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General
Balance Sheet.
An accounting term which refers to a listing of the assets, liabilities,
and surplus of a company or individual as of a specific date.
Basic Limit.
Usually refers to Liability policies and indicates the lowest amount for
which a policy can be written. This amount is either prescribed by law or
company policy.
Basic Premium.
A fixed cost charged in a retrospective rating plan. It is a percentage
of the standard premium and is designed to give the insurer the money needed
for administrative expenses and the agent's commission plus an insurance
charge. See also Retrospective Rating.
Basic Rate.
The manual rate from which discounts are taken or to which charges are added
to reflect the individual circumstances of a risk.
Benefits.
Financial reimbursement and other services provided insureds by insurers
under the terms of an insurance contract. An example would be the benefits
listed under a Life or Health Insurance policy or benefits as prescribed
by a Workers Compensation law.
Binder.
An agreement executed by an agent or insurer (usually the latter) putting
insurance into force before the contract has been written or the premium
paid. This term is not usually used in Life Insurance. See also Cover note.
Birth Rate.
The number of births related to the total population in a given group during
a period of time. It is usually expressed as births per 100,000 people in
1 year.
Blanket Contract.
See Blanket Insurance.
Book of Business.
A total of all insurance accounts written by a company or agent. It may
be treated in different ways. For example: an insurer's book of automobile
business, or an agent's overall book of business, or an agent's book of
business with each insurer.
Book Value.
Refers to the value of assets as shown in the official accounting records
of the company.
Bordereau.
(1) A written report of individual cessions, usually detailed to show such
items as reinsurance premiums or reinsurance losses with respect to specific
risks. (2) A memorandum containing information concerning documents that
accompany it. Used extensively in passing reinsurance from one insurer to
another under a reinsurance agreement and by Property and Liability agents
for passing information to various insurers on coverages written.
Borderline Risk.
An insurance prospect of doubtful quality from an underwriting point of
view.
Boycott.
An unfair trade practice which occurs when someone in the insurance business
refuses to have business dealings with another until he or she complies
with certain conditions or concessions.
Branch Manager.
An executive who manages a branch office for an insurer or an agency. See
also Regional Office.
Branch Office.
See Regional Office.
Brick Construction.
Refers to a building where at least 75% of the exterior walls are of some
type of masonry construction, i.e., brick, stone or hollow masonry tile,
poured concrete or reinforced concrete, or hollow masonry block.
Brick Veneer Construction.
Refers to a building where the outside walls are constructed of wood with
a facing of a single layer of brick.
Broker.
One who represents an insured in the solicitation, negotiation or procurement
of contracts of insurance, and who may render services incidental to those
functions. By law the broker may also be an agent of the insurer for certain
purposes such as delivery of the policy or collection of the premium.
Broker of Record.
A broker who has been designated to handle certain insurance contracts for
the policyholder.
Brokerage.
(1) The fee or commission received by a broker. (2) Insurance placed by
brokers contrasted with that placed by agents.
Brokerage Business.
Business offered to an insurer by a broker. This is sometimes called excess
or surplus business.
Brokerage Department.
A department of an insurer whose purpose is to deal with brokers in the
placing of insurance.
Broker-Agent.
One acting as an agent of one or more insurers and as a broker in dealing
with one or more other insurers.
Building Code.
This refers to municipal or other governmental ordinances regulating the
type of construction of buildings within its jurisdiction.
Bullion.
Refers to precious metals, such as gold, in the form of ingots or bars.
Bureau, Rating.
See Rating Bureau.
Burning Ratio.
The ratio of losses suffered to the amount of insurance in effect.
Business.
In Property, Liability, and Health lines, it usually refers to the volume
of premiums.
"Buy-Back" Deductible.
A deductible which may be eliminated for an additional premium in order
to provide "first-dollar" coverage.
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