INSURANCE GLOSSARY
The Insurance Terms Glossary is divided alphabetically for ease of browsing. Select the alphabet letter that corresponds to the first letter of the word you would like to be informed about to open the appropriate heading.

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Glossary Terms ' B '

Bailee - An individual or entity who holds property of another. Examples are dry cleaners jewelers repairers.

Bailee Insurance - Coverage designed to protect for loss or damage to property of customers regardless of a bailee's legal liability. Bailee Insurance is inland marine coverage on property entrusted to the insured for storage repair or servicing. It is typically purchased by businesses such as dry cleaners jewelers repairers furriers etc.

Barratry of the Master - An action of the master of a ship which violates the trust given to him provided such action is not taken in connivance with the shipowner. Hazard covered in the marine cargo policy.

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 (except donations to charities which generally are recorded at the current value of the asset at the time the gift is made).

Beneficiary - The person or entity designated or provided for by an insurance policy's terms to receive any benefits provided by the policy or plan upon the death of the insured.

Benefit Period - A period of time typically one to three years during which major medical benefits are paid after the deductible is satisfied. When the benefit period ends the insured must then satisfy a new deductible in order to establish a new benefit period.

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 receipt of the premium and all the terms of the policy to be issued. It is a legal agreement that serves to effect insurance coverage for a specified period of time until the actual insurance policy can 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.

Blackout Period - The period during which Social Security benefits are not paid to a surviving spouse; between the time the youngest child reaches age sixteen and the widow's sixtieth birthday.

Blanket Contract - A contract of health insurance affording benefits such as accidental death and dismemberment for all of a class of persons not individually identified. It is used for such groups as athletic teams campers travel policy for employees etc.

Blanket Insurance - A policy designed to provide coverage under a single limit for two or more items (e.g. building and/or contents) two or more locations or a combination of items and/or locations

Blanket Medical Expense - A provision which entitles the insured 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.

Block Policy - A form of inland marine insurance designed to cover loss to the property of a merchant wholesaler or manufacturer including: property of others in the insured's care custody or control property on consignment and property sold but not delivered. Common block policies are jeweler's block and furrier's block policies.

Blue Cross - An independent nonprofit membership corporation providing protection on a service basis against the cost of hospital care in a limited geographical area.

Blue Shield - An independent non-profit membership corporation providing protection on a service basis against the cost of surgical and medical care in a limited geographical area.

Boat Owners Package Policy - A special package policy for boat owners that combines physical damage insurance medical expense insurance liability insurance and other coverages 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 - (1) 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. (2) A certificate or policy issued by an insurance company guaranteeing performance fidelity or surety.

Bondholder - A bondholder is the owner of a bond. This can be and frequently is different from the person/corporation that purchased the bond. The bondholder is entitled to the proceeds of the bond: in investment terms principal and interest; in insurance terms the value the bond supports. For example a surety bond holder would be entitled to the value that is guaranteed by the surety bond.

Book of Business - The number size and type of accounts (policyholders) that an agent services and upon which he earns commissions.

Branch Office System - Type of 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 Property Coverage Including Completed Operations -

Broadcasters Liability Insurance - The legal liabilities of a broadcaster are numerous and vary from the use of incorrect news stories libel and slander invasion of privacy copyright infringement and unauthorized use of plot characters or music. Broadcasters' Liability Insurance covers these exposures as well as defense costs in contesting suits or claims. Employees are covered as insureds while acting within the scope of their duties as such.

Broadened Named Insured - Regarding liability coverages these coverages will automatically apply to "... any affiliated associated allied or subsidiary company or entity (including subsidiaries thereof) now held or hereinafter acquired or constituted..."

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 Income Insurance - A standard element of commercial property insurance providing coverage against loss of operating income due to fire explosion or other insured perils. Generally takes the limited form of business interruption insurance but can be broadened through the addition of indirect loss consequential loss extra expense and other coverages.

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 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.