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Term Definition
B&C building and contents
B-SHARE VARIABLE ANNUITY

A form of variable annuity contract with no initial sales charge but if the contract is cancelled the holder pays deferred sales charges (usually from 5 to 7 percent the first year, declining to zero after from 5 to 7 years).

BACM

Best available control measures

BALANCE SHEET

Provides a snapshot of a companys financial condition at one point in time. It shows assets, including investments and reinsurance, and liabilities, such as loss reserves to pay claims in the future, as of a certain date. It also states a companys equity.

BANK HOLDING COMPANY

A company that owns or controls one or more banks. The Federal Reserve has responsibility for regulating and supervising bank holding company activities, such as approving acquisitions and mergers and inspecting the operations of such companies.

BAP business auto policy
BASIS POINT 0.01 percent of the yield of a mortgage, bond or note. The smallest measure used.
BBB banker's blanket bond
BCAR

Best's Capital Adequacy Ratio

BCBSA Blue Cross and Blue Shield Association
BCE Bermuda Commodities Exchange
BCEGS building codes effectiveness grading schedule
BCM business continuity management
BDAT best demonstrated available technology
BEACH AND WINDSTORM PLANS

State-sponsored insurance pools that sell property coverage for the peril of windstorm to people unable to buy it in the voluntary market because of their high exposure to risk. Seven states (AL, FL, LA, MS, NC, SC, TX) offer these plans to cover residents.

BERP basic extended reporting period
BFCGL broad form comprehensive general liability (endorsement)
BFPD broad form property damage (endorsement)
BI bodily injury; business interruption
BIC business income coverage
BIM Building Information Modeling
BINDER Temporary authorization of coverage issued prior to the actual insurance policy.
BLANKET INSURANCE Coverage for more than one type of property at one location or one type of property at more than one location. Example: chain store
BM, B&M boiler and machinery (forms)
BODILY INJURY LIABILITY COVERAGE Portion of an auto insurance policy that covers injuries the policyholder causes to someone else.
BOILER AND MACHINERY INSURANCE

Often called Equipment Breakdown, or Systems Breakdown insurance. Commercial insurance that covers damage caused by the malfunction or breakdown of boilers, and a vast array of other equipment including air conditioners, heating, electrical, and telephone.

BOND

A security that obligates the issuer to pay interest at specified intervals and to repay the principal amount of the loan at maturity. In insurance, a form of suretyship. Bonds of various types guarantee a payment or a reimbursement for financial losses.

BOND RATING

An evaluation of a bond's financial strength, conducted by such major ratings agencies as Standard & Poor's and Moody's Investors Service.

BOOK OF BUSINESS Total amount of insurance on an insurer?s books at a particular point in time.
BOP

businessowners policy

BOW breach of warranty
BPB blanket position bond
BPF basic premium factor
BPL bankers professional liability insurance
BPT branch profits tax
BR builders risk
BRAC Base Realignment and Closure Act
BROKER

An intermediary between a customer and an insurance company. Brokers typically search the market for coverage appropriate to their clients. They work on commission and usually sell commercial, not personal, insurance. In life insurance, agents must be licensed as securities brokers/dealers to sell variable annuities, which are similar to stock market-based investments.

BTR below-target risk
BURGLARY AND THEFT INSURANCE Insurance for the loss of property due to burglary, robbery or larceny. It is provided in a standard homeowners policy and in a business multiple peril policy.
BUSINESS INCOME AND EXTRA EXPENSE INSURANCE (ALSO KNOWN AS BUSINESS INTERRUPTION INSURANCE)

Commercial coverage that reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire.

BUSINESSOWNERS POLICY / BOP A policy that combines property, liability and business interruption coverages for small- to medium-sized businesses. Coverage is generally cheaper than if purchased through separate insurance policies.
BV brick veneer (construction)

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