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Word
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Definition
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"Any Willing Provider Laws:"
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"Any Willing Provider Laws:" Legislation that requires managed care plans to accept into their networks any provider willing to agree to the network's terms and conditions.
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"Bed Pan" Mutuals
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"Bed Pan" Mutuals: Small mutual insurance companies, usually operating within a single geographic region, that underwrite medical malpractice insurance.
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"Follow the Fortunes" Clause
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"Follow the Fortunes" Clause: A clause often contained in a reinsurance treaty under which the reinsurer agrees to cover all losses within the terms of the underlying policy, thereby following the fortunes of the cedant.
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"Fresh Start"
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"Fresh Start": A special provision of the Tax Reform Act of 1986 allowing for a phase-in of discounting of loss reserves.
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"Long-Tail" Business
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"Long-Tail" Business: A class of business in which claims take a long period of time to occur or be settled.
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"No Fault" Insurance
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"No Fault" Insurance: A system in which an injured person receives benefits from an insurer without having to establish fault.
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"Play or Pay" Programs
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"Play or Pay" Programs: In the field of health insurance, "play or pay" programs refer to legislative initiatives that would require employers either to provide minimum levels of health insurance to their employees or be taxed to fund publicly supported alternatives.
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"Short-Tail" Business
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"Short-Tail" Business: A class of business in which claims are reported and settled in a relatively short period of time.
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"Stress and Strain" Claims
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"Stress and Strain" Claims: Workers' compensation claims relating to injuries or illnesses arising out of psychological pressures in the workplace. Stress and strain claims recently have emerged as a particularly troubling category of claims in California.
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"Three-Legged Stool"
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"Three-Legged Stool": An historical ideal "model" of retirement income, under which people ultimately would rely on a combination of personal savings, Social Security and an employer-sponsored pension plan to fund their retirement.
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"Time and Distance" Cover
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"Time and Distance" Cover: A form of reinsurance policy that provides the cedant with guaranteed payments. The payment schedule is dependent upon investment yields and not upon traditional risk criteria. See Financial Reinsurance.
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"Write Your Own" Flood Insurance
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"Write Your Own" Flood Insurance: See National Flood Insurance Program.
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12(b)-1 Fee
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12(b)-1 Fee: A fee charged by mutual funds to cover promotional expenses, including advertising and commissions, or to pay custodian and service fees to insurers, brokerage houses, etc.
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401(k) Plan
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401(k) Plan: A tax-qualified defined contribution retirement plan offered by a corporation and funded by employees' pretax contributions. Typically permits employees to defer a limited amount of their pretax salary into any of several diversified investment options. Investments build up tax-free until distributed, and corporate sponsors often match part or all of employees' contributions with tax-deductible corporate contributions. See also Keogh Plan.
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403(b) Plan
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403(b) Plan: A voluntary "quasi-group" tax-qualified plan generally sold on a payroll deduction basis to teachers, government employees and employees of hospitals and nonprofit organizations, and often viewed as an alternative to 401(k) plans. Premiums paid by such organizations on an annuity contract for an employee are not taxable and, like other annuities, the inside build-up is tax-deferred. Also referred to as Tax-Qualified Annuities (TQAs) or Tax-Sheltered Annuities (TSAs).
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404 (c )
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404 (c ): The section of the ERISA code, clarified by Department of Labor regulations, that describes employers' (and other plan fiduciaries') role and ultimate potential liability for employees' inappropriate investment decisions under defined contribution plans, and the conditions under which employers may be relieved of liability.
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457 Plan
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457 Plan: A tax-qualified deferred compensation retirement plan offered to employees by state or local governments, municipalities and organizations that obtain their funding from government sources.
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50/50 Rule
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50/50 Rule: Federal regulation requiring that MCO plans maintain commercial membership at least equal to their Medicare enrollment.
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A
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This is the first letter of the alphabet
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Absence Management
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Absence Management: A program to control absences due to disability with an emphasis
on controlling unexplained or excessive absenteeism. Programs with a broader focus (i.e.
not limited to disability-related absence) are often referred to as "total absence
management".
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Absolute Liability
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Absolute Liability: The principle that a person may be held liable for damages even without a finding of fault or negligence.
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Access
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Access: A patient's ability to obtain medical care. The ease of access is determined by such components as the availability of medical services and their acceptability to the patient, the location of health care facilities, transportation, hours of operation and cost of care.
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Accessibility
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Accessibility: As required by the Americans with Disabilities Act, removal of barriers that
would hinder a person with a disability from entering, functioning, and working within a
facility. Required restructuring of the facility cannot cause undue hardship for the employer.
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Accident
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Accident: An unforeseen and unintended event or occurrence.
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Accident and Health Insurance
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Accident and Health Insurance: A form of insurance covering death or personal injury by accident, as well as sickness or bodily injury.
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Accident Year
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Accident Year: The twelve-month period during which losses occurred, regardless of when they are reported.
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Accident, Industrial (Occupational)
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Accident, Industrial (Cccupational): In workers' compensation, an unforeseen,
unintended event that occurs in the course of an individual's employment and results in an
injury or illness.
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Accidental Bodily Injury
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Accidental Bodily Injury: A bodily injury that is the direct result of an accident and not
related to any other cause.
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Accidental Death Benefit
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Accidental Death Benefit: See Double Indemnity.
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Accord and Satisfaction
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Accord and Satisfaction: A method of settling a claim in which the parties to the dispute agree to accept something different than was originally expected. The accord is the substituted agreement, and the satisfaction is the performance of the new agreement.
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Accumulation Period
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Accumulation Period: The period of time during which an insured must incur medical expenses up to the deductible in order to become eligible for reimbursement under a comprehensive major medical or major medical insurance policy. See Comprehensive Major Medical Insurance and Major Medical Insurance.
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Acquisition Costs
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Acquisition Costs: See Policy Acquisition Costs.
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Act of God
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Act of God: An event that occurs without human intervention or culpability. It serves as a defense to tort liability.
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Active Employment
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Active Employment: Working for an employer on a permanent full-time basis and paid
regular earnings and performing the material duties of a regular occupation. An employee
must be working the minimum number of hours as specified in the contract and the
employee's work site must be at the employer's usual place of business, an alternative work
site at the direction of the employer, or a location to which the job requires the employee to
travel.
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Actively At Work
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Actively At Work: Performing all the material duties and required hours of a job in the
location where the duties are normally carried out.
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Activities of Daily Living (ADL)
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Activities of Daily Living (ADL): The activities an individual needs to perform to live
independently. These include bathing, dressing, toileting, transferring, continence and
feeding.
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Actuarial Opinion
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Actuarial Opinion: The certification by an actuary as to the reasonableness of an insurer's reserves.
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Actuary
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Actuary: A person who uses mathematical analysis of past loss data and other statistics to determine rates and estimate an insurer's future liabilities.
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Acute Care
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Acute Care: A pattern of health care in which a patient is treated for an acute (immediate and severe) episode of illness, for the subsequent treatment of injuries related to an accident or other trauma, or during recovery from surgery. Acute care usually is given in a hospital by specialized personnel using complex and sophisticated technical equipment and materials. Unlike chronic care, acute care often is necessary for only a short time.
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Additional Named Insured
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Additional Named Insured: One or more insureds, in addition to the principal named insured, referred to in an insurance policy as one enjoying protection under the policy.
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Add-on Tax
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Add-on Tax: The additional amount of federal income tax payable by mutual life insurers due to the disallowance as a deduction of a portion of policyholder dividends.
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Adjudication
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Adjudication: In workers' compensation, the process of handling a claim, from first report
through final resolution. In group disability benefit plans, the process of determining
eligibility for benefit payment.
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Adjuster
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Adjuster: See Claim Adjuster.
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Administration Expense
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Administration Expense: All the costs incurred by an insurer in the conduct of its business other than policy acquisition costs, loss adjustment expenses and investment expenses.
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Administrative Cost
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Administrative Cost: Costs related to utilization review, insurance marketing, medical underwriting, agents' commissions, premium collection, claims processing, insurer profit, quality assurance programs and risk management.
Administrative Services Only (ASO): A fee-based program in which an insurance company or other third-party administrator performs administrative, clerical or managerial services only and does not assume any risk. Services usually include claims processing, but also may include other services, such as actuarial analysis, utilization review, etc. Businesses or self-funded health plans may use an ASO
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Administrative Law Judge
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Administrative Law Judge: A Judge who specializes in Administrative proceedings, such as Social Security Disability hearings.
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Administrative Services Only (ASO)
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Administrative Services Only (ASO): An arrangement in which an insurance company provides claims paying assistance to a self-funded plan, such as claims adjudication, forms and enrollment, and perhaps arranging for stop loss insurance, but does not assume any insurance risk to plan participants or beneficiaries.
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Admitted Assets
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Admitted Assets: Assets of an insurer permitted by insurance regulatory authorities to be taken into account in determining the insurer's financial condition under statutory accounting practices.
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Admitted Insurer
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Admitted Insurer: An insurer licensed to write certain types of insurance within a given state; also known as an authorized insurer.
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Admitted Paper
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Admitted Paper: Policies issued by an admitted insurer.
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Adverse Selection
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Adverse Selection: The process by which an insurer is left with a disproportionate share of unwanted, higher-risk business. Particularly common in the life and health lines, adverse selection can occur when higher-than-expected claims experience leads an insurer to raise rates, which in turn causes the migration of "good" risks to companies charging less. Adverse selection may be attributable to improper underwriting and risk selection by the insurer or by superior knowledge of the risk by the insured. Among applicants for a given group or individual program, the tendency for those with an impaired health status, or who are prone to higher-than-average utilization of benefits, to be enrolled in disproportionate numbers and lower deductible plans.
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Affinity Group
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Affinity Group: Purchasers of goods and services, including insurance, with common characteristics.
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Age Discrimination in Employment Act (ADEA)
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Age Discrimination in Employment Act (ADEA): A 1967 Federal law that prohibits
employers with 20 or more employees from discriminating on the basis of age in hiring, job
retention, compensation, and benefits. ADEA also sets requirements for the duration of
employer-provided Disability benefits.
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Agency Plant
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Agency Plant: An insurer's sales organization.
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Agent
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Agent: A person who solicits insurance on behalf of an insurer.
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Agents' Balances
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Agents' Balances: An insurer's written premiums minus commissions due and payable; also known as collected premiums.
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Aggregate Deductible
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Aggregate Deductible: The aggregate losses occurring within a given policy period that must be exceeded before an insurer becomes liable for losses.
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Aggregate Limits of Liability
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Aggregate Limits of Liability: The maximum amount payable by an insurer upon all claims arising within a single policy period.
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Aid to Families with Dependent Children (AFDC)
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Aid to Families with Dependent Children (AFDC): A federal cash assistance entitlement program; states are required to cover its beneficiaries under Medicaid.
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ALAE
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ALAE: See Loss Adjustment Expense.
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Alien Insurer
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Alien Insurer: An insurer domiciled outside the United States that transacts business within the United States.
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Alleged Onset Date:
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Alleged Onset Date: the date in which you become disabled or unable to work due to medical conditions.
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Alliance of American Insurers
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Alliance of American Insurers: A Downers Grove, Illinois-based trade organization representing primarily the smaller property-casualty insurers.
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Allied Lines
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Allied Lines: A form of insurance coverage, often written in conjunction with fire insurance, covering perils not included in the basic policy. Includes data processing insurance, demolition insurance, earthquake insurance, increased cost of construction clause, radioactive contamination insurance, sprinkler leakage insurance, standing timber insurance, vandalism and malicious mischief insurance and water damage insurance. Earthquake insurance can be sold as a separate line, and data on earthquake insurance are tracked separately from allied lines in the annual statutory statement.
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Allocated Claim or Loss Adjustment Expense
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Allocated Claim or Loss Adjustment Expense: Expenses directly related to a particular claim, including claims investigation and legal expenses, but excluding loss payments.
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All-Risk Insurance
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All-Risk Insurance: Insurance in which coverage is not limited to specific events or named perils.
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Alphabet Houses
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Alphabet Houses: A small number of national insurance brokerage organizations usually referred to by their initials. For example, Alexander and Alexander was known as "A&A".
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Alternative Delivery Systems
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Alternative Delivery Systems: Health care providers other than acute-care hospitals, e.g., neighborhood clinics, treatment centers and visiting nurses.
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Alternative Market
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Alternative Market: Self-insurers, captive insurers and risk retention groups. These entities provide insurance protection in competition with traditional insurance companies.
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Alternative Minimum Tax (AMT)
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Alternative Minimum Tax (AMT): This term is used to refer to the federal income tax liability of insurers, without regard to whether the insurer has taxable income using standard calculations.
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Ambulatory Care
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Ambulatory Care: Medical services provided on an outpatient basis.
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American Association of Managing General Agents (AAMGA)
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American Association of Managing General Agents (AAMGA): A Kansas City, Missouri-based trade organization representing managing general agents.
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American Council of Life Insurance (ACLI)
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American Council of Life Insurance (ACLI): A Washington, DC-based trade organization representing primarily the larger life insurers.
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American Insurance Association (AIA)
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American Insurance Association (AIA): A Washington, DC-based trade organization representing primarily the larger property-casualty insurers.
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American Lloyd's
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American Lloyd's: Associations of individual underwriters permitted to operate within a limited number of states within the United States. These associations have no legal or other relationship with Lloyd's of London.
American Trust Fund. See Lloyd's American Trust Fund.
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Americans with Disabilities Act (ADA)
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Americans with Disabilities Act (ADA): A physical or mental impairment that
substantially limits one or more of an individual's major life activities; also having a
record of such an impairment or being regarded as having such an impairment.
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Americans with Disabilities Act (ADA):
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Americans with Disabilities Act (ADA): A 1990 federal law that prohibits discrimination
against persons with disabilities in the terms and conditions of employment. Employers
must provide reasonable accommodation for the physical or mental limitations of a qualified
individual to enable him or her to perform the essential functions of a job.
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AMT
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AMT: See Alternative Minimum Tax.
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Ancillary Management
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Ancillary Management: Medical management of such services as pharmacy programs, mental health, EAP and dental care. Larger HMOs tend to keep ancillary services in-house, while smaller ones typically contract with third parties.
Anniversary Date. The anniversary of a policy's effective date.
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Annual Statement
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Annual Statement: A report of an insurer's financial operations filed annually with the insurance regulatory authorities of each jurisdiction in which the insurer is licensed to transact business. The report includes a balance sheet, as well as detailed schedules and exhibits. Also known as a convention blank or statement, statutory statement, yellow book (for property-casualty insurers) and blue book (for life insurance). For a more detailed discussion of theprovisions of the annual statement, see Chapter 10.
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Annuitant
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Annuitant: A person who receives payment pursuant to an annuity contract.
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Annuity
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Annuity: A contract that provides for a fixed or variable periodic payment to a person (the annuitant), made from a stated or contingent date and continued for a specified period, such as for a number of years or for life. An annuity may be bought by means of installments, or it may be bought by means of a single lump sum payment.
Anti-Managed Care Laws. Legislation designed to prohibit or restrict the business activities of managed care plans, or that undermines the principles of managed care
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Any Occupation
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Any Occupation: In LTD plans, any gainful work or service for which an employee is
reasonably qualified, taking into consideration his or her training, education, and
experience. A minimum income standard is not typically specified, but administrative
practice commonly requires 60% or pre-disability earnings.
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Any Occupation Period
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Any Occupation Period: The period during which employees will continue to receive LTD
benefits as long as they cannot perform any job for which they are reasonably qualified by
training, education, and experience; usually six to 30 months. See also own occupation
period.
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Appeal Bond
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Appeal Bond: A form of surety bond that guarantees to the court that the party against whom a judgment was rendered will pay the judgment if the appeal fails.
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Appeals Process
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Appeals Process: As mandated by ERISA, a procedure whereby individuals covered by an employer-sponsored benefit plan can appeal a benefit determination with which they
disagree. The appeal must be filed within 60 days of receiving the determination. The employer or its agent (usually an insurance carrier or third-party administrator) must
communicate its decision within 30 days of the filing of an appeal.
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Appurtenant Structure
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Appurtenant Structure: A building or other structure on the same premises as the primary structure that also is insured under a property or homeowners insurance policy.
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Arbitrary and Capricious
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Arbitrary and Capricious: When applied in terms of a review of a claims denial, the phrase is tantamount to the least demanding form of judicial review. In effect, the Court must only determine whether, in light of the plan's provisions, the plan administrator's decision was rational. "[W]hen it is possible to offer a reasoned explanation, based on the evidence, for a particular outcome, the outcome is not arbitrary or capricious." Id. Though extremely deferential, the standard does not permit the reviewing court to merely "rubber stamp the administrator's decision." See, Jones v. Metropolitan Life Ins. Co., 385 F.3d 654 (6th Cir.2004).
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Arbitration
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Arbitration: A procedure to resolve a dispute between two parties without resorting to litigation.
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Arbitration Clause
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Arbitration Clause: A provision in a contract in which the parties agree to arbitrate disputes. Most contracts between insurers and reinsurers contain an arbitration clause.
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ASO
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ASO: See Administrative Services Only.
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Assessable Mutual Insurer
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Assessable Mutual Insurer: A mutual insurance company that may assess additional premiums from its insureds in the event losses exceed expectations.
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Assessment
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Assessment: This term refers to (1) an additional payment that may be required of policyholders of an assessable mutual insurer in the event losses exceed expectations and (2) a charge levied upon insurers by state guaranty funds or other regulatory authorities.
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Asset Valuation Reserve (AVR)
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Asset Valuation Reserve (AVR): A reserve adopted in interim form by the National Association of Insurance Commissioners in December, 1991, to replace the Mandatory Securities Valuation Reserve (MSVR). AVR was established as a liability on life insurance statutory financial statements beginning in 1992. Life insurers are required to establish statutory reserves for mortgage loans, equity, real estate and joint ventures, as well as for those investments (fixed maturities and equity) previously subject to MSVR. AVR captures all unrealized, as well as realized, gains and losses on such assets.
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Asset-Liability Matching
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Asset-Liability Matching: An investment strategy particularly appropriate for insurers in which the asset manager attempts to match the maturities of fixed-income securities to the schedule of claims and other payments anticipated by the insurer.
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Assigned Risk
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Assigned Risk: An insured whose insurance is provided through an assigned risk pool or plan.
Assigned Risk Pool or Plan. A program for providing automobile insurance to high-risk drivers who cannot obtain insurance in the voluntary markets.
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Association Plans
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Association Plans: Group annuity contracts marketed to independent businesses affiliated with professional and trade associations.
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Assume
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Assume: The act of accepting a risk from a cedant in consideration of payment of a premium.
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Assumed Premiums
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Assumed Premiums: Refers primarily to premiums arising from reinsurance policies issued by an insurer or reinsurer. Also may refer to premiums accepted by an individual company under a pooling arrangement.
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Assumption of Risk Doctrine
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Assumption of Risk Doctrine: A legal doctrine that provides a defense for a claim of negligence based upon the plaintiffs knowledge and voluntary assumption of risk associated with a particular activity.
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Assumption Reinsurance
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Assumption Reinsurance: A transaction in which one insurer transfers its liabilities under existing or in-force contracts to an assuming insurer. The transfer is intended to extinguish the assignor's liabilities under the contracts being assigned.
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Assurance
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Assurance: A synonym for insurance.
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Attachment Point
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Attachment Point: The level above which insurance or reinsurance becomes applicable.
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Attending Physician
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Attending Physician: The physician responsible for the admitting and directing of care
and services provided to a patient while in an acute, skilled or rehabilitation facility. See
treating physician.
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Attending Physician Statement (APS)
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Attending Physician Statement (APS): A report, filled out the insured's physician documenting
current and prior health history. An APS helps the insurance company in the evaluation
process of approving an application or a claim.
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Attractive Nuisance Doctrine
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Attractive Nuisance Doctrine: A legal doctrine that recognizes that certain conditions can attract and cause injury to children. Upon such a finding, the owner of such property can be held liable for resulting injuries.
Audit Premiums. Premiums developed from an audit of an insured's records. Audit premiums are generated in workers' compensation and other lines of insurance where premiums are based on payroll and other data relating to actual exposures.
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Authorized Insurer
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Authorized Insurer: See Admitted Insurer.
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Authorized Reinsurance
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Authorized Reinsurance: Reinsurance provided by a reinsurer recognized by a particular state regulator.
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Automatic Reinstatement
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Automatic Reinstatement: A policy provision that provides for automatic reinstatement of a policy following payment of a loss.
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Automatic Treaty
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Automatic Treaty: See Treaty Reinsurance.
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Automobile Insurance
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Automobile Insurance: A form of insurance that provides protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles owned by the insured.
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Automobile Insurance Plan
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Automobile Insurance Plan: See Assigned Risk Pool or Plan.
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Average Weekly Wage (AWW)
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Average Weekly Wage (AWW): In workers' compensation, the wage used to determine
the amount of temporary Disability benefits for which an employee is eligible. Calculation
varies by state law.
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Aviation Insurance
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Aviation Insurance: A form of insurance that provides liability and physical damage protection for aircraft and their contents.
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AVR
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AVR: See Asset Valuation Reserve.
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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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