Dictionary of Insurance Terms -B-

-B-

• Bailees Customers Policy:
  Policy that covers the loss or damage to property of customers regardless
  of a bailee’s legal liability.


• Basic Form: see Dwelling Property 1.


• Basis: An amount attributed to an asset for
  income tax purposes; used to determine gain or loss on sale or transfer;
  used to determine the value of a gift.


• Benefits: The amount payable by the insurance
  company to a claimant, assignee or beneficiary under each coverage.


• Binder: A written or oral contract issued temporarily
  to place insurance in force when it is not possible to issue a new policy
  or endorse the existing policy immediately. A binder is subject to the
  premium and all the terms of the policy to be issued.


• Binding Receipt: A receipt given for
  a premium payment accompanying the application for insurance. If the policy
  is approved, this binds the company to make the policy effective from the
  date of the receipt.


• Blanket Medical Expense: A
  provision which entitles the insured person to collect up to a maximum
  established in the policy for all hospital and medical expenses incurred,
  without any limitations on individual types of medical expenses.


• Boat Owners Package Policy:
  A special package policy for boat owners that combines physical damage
  insurance, medical expense insurance, liability insurance, and other coverage’s
  in one contract.


• Boiler and Machinery Insurance:
  Coverage for loss arising out of the operation of pressure, mechanical,
  and electrical equipment. It covers loss of the boiler and machinery itself,
  damage to other property, and business interruption losses.


• Bond: A certificate issued by a government or
  corporation as evidence of a debt. The issuer of the bond promises to pay
  the bondholder a specified amount of interest for a specified period and
  to repay the loan on the expiration (maturity) date.


• Book of Business: the number, size
  and type of accounts (policyholders) that an agent “owns.”


• Branch Office System: Type of
  life insurance marketing system under which branch offices are established
  in various areas. Salaried branch managers, who are employees of the company,
  are responsible for hiring and training new agents.


• Break in Service: A calendar year,
  plan year or other consecutive 12-month period designated by the plan during
  which a plan participant does not complete more than 500 hours of service.


• Broad Form: see Dwelling Property 2;
  Homeowners 2 Policy.


• Broker: A marketing specialist who represents
  buyers of property and liability insurance and who deals with either agents
  or companies in arranging for the coverage required by the customer.


• Burglary: Breaking and entering into another
  person’s property with felonious intent.


• Burglary and Theft Insurance:
  Coverage against property losses due to burglary, robbery, or larceny.


• Business Insurance: A policy which
  primarily provides coverage of benefits to a business as contrasted to
  an individual. It is issued to indemnify a business for the loss of services
  of a key employee or a partner who becomes disabled.


• Business Interruption
  Insurance: Protection for a business owner against losses resulting
  from a temporary shutdown because of fire or other insured peril. The insurance
  provides reimbursement for lost net profits and necessary continuing expenses.


• Business Life Insurance: Life
  insurance purchased by a business enterprise on the life of a member of
  the firm. It is often bought by partnerships to protect the surviving partners
  against loss caused by the death of a partner, or by a corporation to reimburse
  it for loss caused by the death of a key employee.


• Buy-Sell Agreement: An agreement
  made by the owners of a business to purchase the share of a disabled or
  deceased owner. The value of each owner’s share of the business and the
  exact terms of the buying-and-selling process are established before death
  or the beginning of disability.