Insurance and risk management terminology · MLC-0106

Insurance and risk management terms: B (165)

• Back payCompensation awarded to an employee for earnings lost due to an employer's wrongful action, such as an...
• Backdated liability insuranceA liability insurance policy that provides coverage for claims arising from incidents that occurred prior to...
• BackhaulingThe practice of a commercial vehicle returning from a delivery with a new load, rather than traveling empty...
• Back-to-back deductibleA deductible structure where two or more separate insurance policies covering the same risk each apply their...
• Bad faithAn insurer's unreasonable or unfounded refusal to pay a valid claim or its failure to process and investigate...
• BaileeA person or entity that takes temporary possession of another's property for a specific purpose, such as...
• Bailee coverageInsurance protection for businesses that temporarily hold the property of others for repair, cleaning...
• BalanceThe amount of premium still owed by a policyholder after an initial payment has been made. This outstanding...
• Balance billingThe practice by a healthcare provider of charging a patient for the difference between the provider's usual...
• BancassuranceA business model where a bank and an insurance company form a partnership, allowing the insurer to sell its...
• BankA financial institution that accepts deposits and channels these funds into lending activities, investments...
• Bankers professional liability insurance (BPL), (BPLI)A specialized form of errors and omissions (E&O) insurance designed to protect banks and their employees from...
• Bankruptcy conditionA policy provision stating that the bankruptcy or insolvency of the insured does not relieve the insurer of...
• Ban-the-box legislationLaws that prohibit employers from asking about an applicant's criminal history on initial job applications...
• Bare walls coverageAn insurance policy that covers only the structural elements of a building, such as the exterior walls, roof...
• Bareboat charterA type of marine charter agreement where the charterer takes full possession and control of a vessel...
• BargeA flat-bottomed vessel designed for transporting bulk goods and heavy cargo, primarily on inland waterways...
• BarratryAn unlawful act committed by the master or crew of a ship against the ship's owner or charterer, resulting in...
• Base flood1. A flood having a 1% chance of being equaled or exceeded in any given year.
• Base flood depthThe depth shown on the Flood Insurance Rate Map (FIRM) for Zone AO that indicates the depth of water above...
• Base flood elevationThe elevation of surface water resulting from a flood that has a 1% chance of equaling or exceeding that...
• Basel Committee on Banking SupervisionAn international committee of banking supervisory authorities that formulates global regulatory standards for...
• Basement1. Any area of the building, including any sunken room or sunken portion of a room, having its floor below...
• Basic causes of loss formA standardized form used in commercial property insurance that specifies the perils covered by the policy...
• Basic extended reporting period BERPA provision in a claims-made liability insurance policy that allows claims to be reported after the policy...
• Basic limitsThe minimum amounts of liability coverage required by law or offered as a standard option in an insurance...
• Basic premiumThe initial or fundamental premium amount calculated for an insurance policy before any adjustments for...
• Basic premium factor BPFA multiplier used in certain insurance rating plans, particularly in workers' compensation, to adjust the...
• Basic rateThe fundamental premium charge for an insurance policy before any adjustments for specific risk factors...
• Basis point(s)A standard unit of measure for interest rates and other percentages in finance, representing one-hundredth of...
• Basis riskThe risk that the value of a hedging instrument will not perfectly offset the value of the underlying asset...
• Basket aggregateA type of deductible or retention that applies to the total amount of losses from multiple occurrences within...
• Basket deductibleA single deductible amount that applies to the total of all covered losses arising from multiple perils or...
• Basket retentionA cumulative self-insured retention amount that applies to the total of all losses across multiple lines of...
• Batch clauseA provision in an insurance policy, particularly in liability coverage, that treats multiple individual...
• Beauty contestA competitive process where multiple insurance brokers or underwriters present their proposals and terms to a...
• Below-target-risk (BTR)A classification for pension schemes where the assets held are less than the amount required to meet the...
• BENAn acronym for Bodily Injury, Evacuation, and Notification, a specialized coverage endorsement available...
• Bench trialA trial in a court of law where a judge, or a panel of judges, serves as the fact-finder and renders the...
• BenchmarkingA systematic process of comparing an organization's performance metrics, processes, or practices against...
• Bench-scale testsSmall-scale laboratory experiments conducted to evaluate the feasibility and effectiveness of a process or...
• BeneficiaryThe person, entity, trust, or estate designated to receive the proceeds or benefits from an insurance policy...
• Benefit planA structured program offered by an employer or organization to provide employees or members with non-wage...
• BenefitsThe payments or services provided by an insurer or employer to an insured individual or employee under the...
• Benefits payable exclusionA provision in an insurance policy that specifically states certain types of payments or services will not be...
• Best available control measures (BACM)The most effective and technologically feasible methods, equipment, and practices for controlling or reducing...
• Best demonstrated available technology (BDAT)A standard established by the U.S. Environmental Protection Agency (EPA) under the Resource Conservation and...
• Best's capital adequacy ratio (BCAR)A proprietary model developed by AM Best to assess the financial strength and capital adequacy of insurance...
• Best's ratingAn independent opinion issued by A.M. Best, a global credit rating agency, regarding the financial strength...
• Betterment clauseA provision in an insurance policy that reduces the amount of a claim payment if repairs or replacements...
• Bid bondA type of surety bond that provides financial assurance to a project owner that a contractor submitting a bid...
• Bid deductsA practice in workers' compensation insurance where an employer offers to pay a portion of each claim...
• Biennial reportEvery two years, communities participating in the National Flood Insurance Program (NFIP) must complete and...
• BifurcationThe division of a legal proceeding or a financial instrument into two separate parts. In litigation, it might...
• Bilateral extended reporting period provisionA clause in a claims-made liability insurance policy that allows both the insurer and the insured to agree to...
• Bill of ladingA legal document issued by a carrier to a shipper that details the type, quantity, and destination of the...
• BinderA temporary agreement that provides immediate insurance coverage to an applicant while the formal insurance...
• Binder or certificate of insuranceA temporary agreement between company, agent/producer and insured that the policy is in effect. The NFIP does...
• Bingo card programA method for tracking and verifying a commercial driver's interstate operating authority and insurance status...
• Biological magnificationThe process by which the concentration of a toxic substance increases in organisms at successively higher...
• Biomechanical analysisThe scientific study of the mechanics of biological systems, particularly the human body, in relation to...
• BioremediationA process that uses microorganisms or their enzymes to return the environment altered by contaminants to its...
• Bipartisan Campaign Reform Act of 2002A federal law that sought to regulate the financing of political campaigns, primarily by limiting the use of...
• Black Lung Benefits Act of 1973A federal statute that provides financial and medical assistance to coal miners who are totally disabled by...
• Blackout periodA temporary interval during which participants in a retirement plan, such as a 401(k), are prohibited from...
• Blanket additional insured endorsementAn attachment to a liability insurance policy that automatically extends coverage to any party for whom the...
• Blanket contractual liability insuranceCoverage that extends to all contracts under which the insured assumes the liability of another party...
• Blanket fidelity bondA type of fidelity bond that covers all employees of an organization, rather than naming specific...
• Blanket group boiler and machinery coverageInsurance that covers property damage and business interruption losses resulting from the sudden and...
• Blanket insuranceA single amount of insurance applying to more than 1 building and/or contents. Blanket insurance is not...
• Blanket limitA single amount of insurance that applies to multiple items, locations, or types of property, rather than...
• Blanket medical expenseA type of health insurance coverage that provides a single, overall maximum benefit amount for all covered...
• Blanket policyAn insurance policy that covers multiple items of property, locations, or types of property under a single...
• Blanket position bond (BPB)A type of fidelity bond that covers all employees in specific positions, rather than naming individual...
• Blended finite riskA reinsurance arrangement that combines elements of traditional indemnity insurance with finite risk...
• Blended riskA risk management approach that combines different types of risk, such as insurable risks and uninsurable...
• Blockchain technologyA decentralized, distributed ledger technology that records transactions across a network of computers...
• Blowout and crateringA specialized liability coverage for oil and gas operations that addresses the costs associated with an...
• Blowout prevention warrantyA policy condition in insurance for oil and gas operations that requires the insured to maintain and operate...
• Blue bookA commonly recognized publication or database that provides estimated market values for used vehicles, based...
• Blue planA health insurance plan offered by an independent, locally operated member company of the Blue Cross Blue...
• Board committeesSubgroups of a company's board of directors, formed to oversee specific areas of governance, risk management...
• Boards and bureausOrganizations that collect and analyze insurance statistics, develop standardized policy forms, and calculate...
• Boatowners policyA specialized insurance contract designed to cover losses related to recreational boats, yachts, and personal...
• BobtailDescribing a tractor unit operating without an attached trailer. This occurs when a truck driver is traveling...
• Bobtail liabilityInsurance coverage for a tractor unit when it is operating without an attached trailer, regardless of whether...
• Bodily injury (BI)Physical harm, sickness, or disease sustained by a person, including death resulting from such harm...
• Bodily injury by accident-policy limitThe maximum amount an insurer will pay under a workers' compensation policy for all bodily injuries sustained...
• Bodily injury by disease-each employee limitThe maximum amount an insurer will pay under a workers' compensation policy for bodily injury by disease...
• Bodily injury by disease-policy limitThe maximum aggregate amount an insurer will pay under a workers' compensation policy for all bodily injuries...
• BoilerplateStandardized, pre-written text used in insurance policies and other legal contracts without substantial...
• BondA three-party agreement in which a surety guarantees to an obligee that a principal will fulfill a...
• Bondability letterA document issued by a surety company indicating its willingness to provide a bond for a specific contractor...
• BondingThe process by which a surety company provides a guarantee to an obligee that a principal will perform a...
• Book valueThe value of an asset as recorded on a company's balance sheet, calculated as its original cost less any...
• Boom coverageAn extension of an insurance policy that provides protection for the boom attachment of equipment, such as...
• BordereauA detailed report that a managing general agent (MGA) or a ceding insurer provides to a reinsurer or an...
• Borderline riskAn insurance applicant or exposure that does not clearly meet the standard underwriting criteria for...
• Bornhuetter-Ferguson techniqueAn actuarial method used to estimate ultimate claim liabilities, particularly for long-tailed lines of...
• Borrowed servant ruleA legal doctrine that determines which employer is liable for the actions of an employee who is temporarily...
• Boutique law firmA law firm that concentrates on a small number of specialized practice areas, offering deep expertise in...
• Branch captiveA type of captive insurance company established as a branch of an existing foreign captive insurer, rather...
• Branch profits tax (BPT)A tax imposed by the United States on the deemed dividend equivalent amount of a foreign corporation's U.S...
• Brand equityThe commercial value derived from consumer perception of a brand name rather than from the product or service...
• Brand rehabilitationThe process of restoring a brand's reputation and positive perception after it has been damaged by a crisis...
• Brands and labels endorsementAn addition to a property insurance policy that specifies how damaged merchandise bearing the insured's brand...
• BreachA failure to fulfill an obligation or duty specified in a contract, agreement, or legal standard. In...
• Breach coachingA service provided by experts, often legal counsel or specialized consultants, to guide an organization...
• Breach of an employment contractA violation of the terms and conditions agreed upon in an employment contract by either the employer or the...
• Breach of contractA failure, without legal excuse, to perform any promise that forms all or part of a contract. This can...
• Breach of warranty clause (BOW)A provision in an insurance policy that states the insurer will not deny a claim due to a breach of warranty...
• Break pointA predetermined threshold or level at which a change occurs in the calculation of premiums, commissions, or...
• Breakaway wall1. A wall that is not part of the structural support of the building and is intended through its design and...
• Broad causes of loss formA standardized insurance form that lists the perils covered under a commercial property policy, offering...
• Broad evidence ruleA legal principle used in property insurance claims to determine the actual cash value of damaged property...
• Broad form comprehensive general liability endorsement (BFCGL)An addition to a general liability policy that expands coverage beyond the standard provisions. This...
• Broad form contractual liability insuranceA type of contractual liability coverage that extends to a wider range of assumed liabilities than basic...
• Broad form drive other car coverageAn endorsement to a commercial auto policy that extends liability coverage to an individual, typically an...
• Broad form hold harmless clauseA contractual provision where one party agrees to indemnify and hold harmless another party from all...
• Broad form named insured endorsementAn endorsement that expands the definition of 'named insured' to include additional entities or individuals...
• Broad form property damage (BFPD)An exclusion in commercial general liability policies that removes coverage for property damage to work...
• Broadcasters liabilityInsurance coverage designed to protect broadcasters, including television, radio, and online media entities...
• BrokerAn independent insurance professional who represents the insured in securing coverage from insurers. This...
• Brokerage departmentA division within an insurance agency or company that specializes in placing complex or unusual risks with...
• Brokerage marketThe segment of the insurance industry where brokers place risks with insurers, often for specialized or...
• Brother-sister relationshipA relationship between two or more corporations where the same individual or group of individuals owns a...
• BrownfieldA property, the expansion, redevelopment, or reuse of which is complicated by the presence or potential...
• Brownian motionA stochastic process used to model the random path of a variable over time, characterized by continuous but...
• Browse-wrap agreementA type of online agreement where a user assents to terms and conditions by simply using a website or online...
• Buffer layerAn intermediate layer of insurance coverage placed between the primary layer and an excess layer, or between...
• Builders risk policy (BR)A specialized property insurance policy that covers buildings and structures under construction, renovation...
• Building• A structure with 2 or more outside rigid walls and a fully secured roof, that is affixed to a permanent...
• Building and personal property coverage formA standard commercial property insurance form that provides coverage for direct physical loss or damage to...
• Building Codes Effectiveness Grading Schedule (BCEGS)A system developed by the Insurance Services Office (ISO) that assesses the quality and enforcement of...
• Building construction categories (ISO)Classifications developed by the Insurance Services Office (ISO) to categorize buildings based on their...
• Building in the course of constructionA walled and roofed building (see the General Rules section for the exception) that is principally above...
• Building information modeling (BIM)A digital representation of physical and functional characteristics of a facility. This process creates and...
• Building ordinance coverageAn endorsement added to a property insurance policy that provides coverage for increased costs incurred due...
• Building rateThe price per unit of insurance coverage used to calculate the premium for insuring a specific building...
• Bulk carrierA commercial vehicle or vessel designed to transport unpackaged bulk cargo, such as grain, coal, ore, or...
• Bulk reservesAn aggregate amount of funds set aside by an insurer to cover potential future claim payments that are not...
• BullyingRepeated aggressive behavior, either physical, verbal, or psychological, intended to cause harm, distress, or...
• BumbershootAn umbrella liability policy designed for marine-related businesses, providing excess liability coverage over...
• Bump-up exclusionA provision in directors and officers (D&O) liability insurance policies that excludes coverage for claims...
• Burden of proofThe obligation of a party in a legal dispute to present evidence that supports their claim or defense. In...
• BurglaryThe unlawful taking of property from within a premises that is closed for business, which involves forcible...
• Burning costThe actual cost of losses incurred by an insured or a reinsured entity over a specific period, often...
• Business auto policy (BAP)A standardized insurance contract that provides liability and physical damage coverage for vehicles owned...
• Business building1. A building in which the named insured is a commercial enterprise primarily carried out to generate income...
• Business continuation insuranceA type of policy designed to provide funds for a business to continue operating after the death, disability...
• Business continuity management (BCM)A holistic management process that identifies potential threats to an organization and the impacts those...
• Business income coverage (BIC)Insurance that replaces lost net income and covers continuing operating expenses when a business must suspend...
• Business income worksheetA financial form that a business owner completes to estimate the necessary amount of business income...
• Business judgment ruleA legal principle that protects corporate directors and officers from liability for decisions made in good...
• Business legal expense insurance (LEI)A type of insurance that covers legal costs incurred by a business for specific events, such as contract...
• Business propertyEither a business building or the contents within a business building, or both.
• Business riskThe potential for an organization to incur losses or fail to achieve its objectives due to internal or...
• Business use classA classification assigned to a vehicle based on its primary purpose in commercial auto insurance, influencing...
• Businessowners policy (BOP)A package policy that combines property and liability insurance into a single contract, designed for small to...
• But for evidentiary standardA legal test used to establish causation, particularly in discrimination cases, where the plaintiff must...
• "But for" testA legal principle used to determine causation in negligence cases, asking whether an injury would have...
• Buyback deductibleAn option offered by an insurer that allows a policyholder to reduce their deductible amount by paying an...
• Buyout settlement clauseA provision in an insurance policy or settlement agreement that allows one party to pay a lump sum to the...
• Buy/sell agreementA legally binding contract between co-owners of a business that dictates how a departing owner's share will...
• Bystander claimA legal claim for emotional distress or psychological injury suffered by an individual who witnesses a...

165 of 3,748 terms in Insurance and risk management terminology (MLC-0106). Request the full dataset.