Balance
Sheet
A quantitative outline of a company’s monetary state
at a definite point in time, including assets, liabilities
and net value. A bookkeeping term which refers to a listing
of the assets, liabilities, and surplus of a company or individual
as of a specific date. A financial report showing the nature
and amount of a company's assets, liabilities and shareholders'
equity. Basic Limit
Typically refers to authorized responsibility policies and
indicates the lowest amount for which a policy can be written.
This total is either prescribed by law or company policy.
Basis Point
Used to explain the difference in bond yields. One foundation
point equals one-hundredth of a percentage point.
Benefits
Financial sums paid or payable to a person insured under
an insurance policy, or to someone else, such as a health
care provider, to whom the insured person has assigned the
benefits. An example would be the reimbursement listed under
a Life or Health Insurance policy or benefits as prescribed
by a Workers Compensation law.
Beneficiary
The person or financial method, named in the policy as the
recipient of insurance money in the incident of the policyholder's
death.
Binder
A statement issued by a title insurance company setting
forth the situation of title to positive property as of
a certain date, and setting forth conditions, which if pleased
will cause a policy of title insurance to be issued.
Binding Receipt
An acceptance given for the payment which accompanies an
application for insurance. If the policy is accepted, the
expense binds the company to make the policy efficient from
date of receipt.
Blanket Contract
Agreement for health insurance that coves a class of persons.
It is used for clusters such as sporty teams and for employee
travel.
Bond
A safekeeping that obligates the issuer to pay interest
at particular intervals and to repay the major amount of
the loan at maturity.
Book of Business
Total quantity or sum of insurance amount on an insurer's
books at a particular point in time.
Broker
A mediator between a client and an insurance corporation.
Brokers normally search the market for coverage appropriate
to their clients. In life insurance, agents are required
to be licensed as securities brokers/dealers to sell variable
annuities, which are similar to stock market-based investments.
Business Insurance
A strategy that provides coverage to a business. It is often
purchased to indemnify a business for the loss of services
if a key employee grows to be disabled.
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