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Word
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Definition
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Baby Boom Generation, or Baby Boomers
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Baby Boom Generation, or Baby Boomers: The large group of 76 million Americans born between 1946 and 1964.
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Bad Faith Claim
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Bad Faith Claim: A claim based upon wrongful conduct, usually asserted by an insured against an insurer. Such claims may give rise to punitive damages far in excess of the actual damages suffered by the claimant.
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Bail Bond
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Bail Bond: A form of surety bond furnished by a person seeking release from incarceration. The bail bond guarantees the person's appearance in court and is forfeited if this obligation is breached.
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Bank
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Bank: Within the context of reinsurance, this term is used to refer to the profits earned by a reinsurer during the life of a program. For example, if a reinsurer providing catastrophe reinsurance has earned $100,000 in premiums and incurred no losses, there would exist a $100,000 bank.
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Bank Investment Contract (BIC)
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Bank Investment Contract (BIC): A form of GIC issued only by a bank, these are the primary noninsurance competition for GICs, and are particularly popular for maturities of less than three years.
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Basic Limits
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Basic Limits: The minimum limits of liability that may be purchased by an insured.
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Beneficiary
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Beneficiary: The person named in an insurance policy as the recipient of the proceeds of the policy. Also refers to any person eligible as either a subscriber or a dependent for a managed care service in accordance with a contract.
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Beneficiary
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Beneficiary: The term "beneficiary" means a person designated by a participant, or by the terms of an employee benefit plan, who is or may become entitled to a benefit thereunder. See, 29 U.S.C. 1002 (7)(8).
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Benefit Coordination
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Benefit Coordination: see benefit integration.
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Benefit Duration
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Benefit Duration: The length of time that medical or STD/LTD benefits will be paid to an
employee, as specified by the insurance contract or plan design. Federal requirements for
benefits duration are contained in the Age discrimination in Employment Act (ADEA).
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Benefit Integration
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Benefit Integration: 1) Reduction of a scheduled benefit by amounts paid or available to
an employee from other disability-related sources of income. For STD and LTD plans, other
sources could include workers' compensation, government disability plans, disability benefits
from pension plans, retirement benefits, and Social Security disability benefits both primary
and family, also known as benefit coordination or offsets. 2) Interdependent administrative
and benefit design provision of STD, LTD, WC, and other paid time off benefits to achieve
cost savings, optimal medical treatment, and return to work.
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Benefit Percentage
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Benefit Percentage: Percent of weekly (short-term disability) or monthly (long-term
disability) salary that will be replaced.
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Best Ratings
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Best Ratings: Ratings issued by A. M. Best Company, Inc., a company that publishes reports on the financial condition and history of individual insurers and provides ratings on most of the insurers doing business in the United States. See Chapter 13.
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BIC
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BIC: See Bank Investment Contract.
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Bid Bond
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Bid Bond: An instrument provided by the surety guaranteeing that the surety will deliver a contract performance bond if a contractor's bid is accepted.
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Binder
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Binder: Temporary authorization of coverage issued prior to the issuance of an insurance policy.
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Blank
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Blank: See Annual Statement.
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Blanket Contract
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Blanket Contract: A health insurance contract that provides coverage on a group basis, e.g., employees within a business organization.
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Blanket Coverage
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Blanket Coverage: A form of insurance that covers multiple items of property.
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Blue Book
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Blue Book: See Annual Statement.
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Blue Cross/Blue Shield Plans
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Blue Cross/Blue Shield Plans: Nonprofit prepayment plans that provide health insurance coverage for hospital and physicians' services.
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Board Certification
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Board Certification: A status awarded by a professional association indicating that the
health care practitioner has met specific standards of knowledge and clinical skill within a
specified field. The board certification process usually involves passing a written and oral
examination administered by the professional certification committee.
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Bodily Injury (BI) Liability Insurances
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Bodily Injury (BI) Liability Insurances: A form of insurance that provides protection against losses resulting from the imposition of a liability claim against an insured for bodily injury to a third party. Bodily injury can include losses of a purely economic nature, such as loss of wages.
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Boiler and Machinery Insurance
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Boiler and Machinery Insurance: A form of insurance that protects an insured from losses resulting from damage to boilers and other machinery.
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Bond
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Bond: See Surety Bond.
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Bonding Company
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Bonding Company: An insurer authorized to issue surety bonds. Book. Refers to an insurer's in-force business.
Book. Refers to an insurer's in-force business.
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BOP
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BOP: See Business Owners Policy.
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Bordereau
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Bordereau: A detailed list of premiums and claims prepared periodically by cedants for reinsurers to advise them of risks accepted and claims incurred.
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Bornhuetter-Ferguson Method
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Bornhuetter-Ferguson Method: A reserving technique used by actuaries for estimating a property-casualty insurer's loss liability.
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Broad Form
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Broad Form: A package policy that covers additional perils beyond those in a basic package policy. See Package Policy.
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Broker
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Broker: An intermediary who represents the insured in its dealings with an insurer and/or shops for coverage on behalf of the insured. Also, organizations that sell Lloyd's policies to insureds.
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Broker
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Broker: An individual who represents an insured in the solicitation, negotiation or
procurement of insurance. An insurance broker does not represent insurance companies as
agent but places orders with insurance companies.
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Builders Risk
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Builders Risk: A form of insurance that indemnifies an insured for damage to a building under construction.
Bulk Reinsurance. See Portfolio Transfer.
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Bundled Arrangement
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Bundled Arrangement: A defined contribution plan approach in which a single provider handles all aspects of record-keeping, administration and investments for a plan sponsor. Often, the arrangement will be "pseudo-bundled," offering the services of a record-keeper/administrator and a number of fund managers that have entered into strategic alliances that allow others to offer their products.
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Business Interruption Insurance
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Business Interruption Insurance: A form of insurance that reimburses a business owner for lost profits and certain other losses.
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Business Judgment Rule
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Business Judgment Rule: A legal doctrine that protects directors and officers of a corporation from personal liability for losses arising from a prudent, good faith decision.
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Business Life Insurance
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Business Life Insurance: See Key Man Life Insurance.
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Business Owners Policy (BOP)
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Business Owners Policy (BOP): A package policy designed to meet the insurance requirements of small- to medium-sized businesses.
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