Glossary
Insurance Terms Glossary
This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.
The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.
Terms beginning with B
- Beneficiary
- – the individual(s) named to receive the death benefit of an insurance policy when the insured dies.
- Benefits
- – amount payable under an insurance policy.
- Binder
- – a written memorandum of the most important parts of an oral contract for insurance.
- Blanket Bond
- – coverage of broad scope, employee dishonesty protection for employers.
- Blanket Insurance
- – coverage for various pieces of property in a single policy.
- Boiler And Machinery Insurance
- – coverage against the sudden damage to steam boilers, pipes, engines, motors, turbines and generators, along with other insured electrical, air conditioning, and refrigerating equipment.
- Bond
- – an agreement offering one party financial protection against loss caused by another party.
- Book Value
- – the value of an asset or assets reflected in the companies' financial statements.
- Bordereau
- – detailed list of all reinsured risks within a treaty.
- Broker
- – a licensed insurance representative who works on behalf of the insurance buyer, selling products from multiple companies.
- Bulk Reinsurance
- – transaction of reinsurance in which the reinsurer acquires all or a part of an insurance portfolio.
- Burglary Insurance
- – coverage for loss of property from premises closed for business and locked with the use of force in order to gain access.
- Business Automobile Policy
- – specialized contracts and forms, for commercial use vehicles, covering direct losses resulting from property damage, accidents, medical payments and property damage and liability.
- Business Interruption Insurance
- – coverage for loss of income due to property loss.
- Buyer's Market
- – a relative low point in the insurance market cycle, at which time buyers may be able to negotiate lower premiums. Also known as a soft market
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