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Insurance Glossary - B

Bailees
A person who has lawful possession of the personal property of another in trust for a specific purpose and who is obligated to have it returned.

Benefit Period
A period of time typically one to three years during which major medical benefits are paid after the deductible is satisfied. When the benefit period ends, the insured must then satisfy a new deductible in order to establish a new benefit period.

Benefits
The amount payable by the insurance company to a claimant, assignee or beneficiary under each coverage.

Binder
A written or oral contract issued temporarily to place insurance in force when it is not possible to issue a new policy or endorse the existing policy immediately.

Binding Receipt
A receipt given for a premium payment accompanying the application for insurance. If the policy is approved, this binds the company to make the policy effective from the date of the receipt.

Blackout Period
The period during which Social Security benefits are not paid to a surviving spouse- between the time the youngest child reaches age sixteen and the widow's sixtieth birthday.

Blue Cross
An independent, nonprofit membership corporation providing protection on a service basis against the cost of hospital care in a limited geographical area.

Blue Shield
An independent, non-profit membership corporation providing protection on a service basis against the cost of surgical and medical care in a limited geographical area.

Boat Owners Package Policy
A special package policy for boat owners that combines physical damage insurance, medical expense insurance, liability insurance, and other coverage's in one contract.

Boiler and Machinery Insurance
Coverage for loss arising out of the operation of pressure, mechanical, and electrical equipment. It covers loss of the boiler and machinery itself, damage to other property, and business interruption losses.

Bond
A certificate issued by a government or corporation as evidence of a debt. The issuer of the bond promises to pay the bondholder a specified amount of interest for a specified period and to repay the loan on the expiration (maturity) date.

Broker
A marketing specialist who represents buyers of property and liability insurance and who deals with either agents or companies in arranging for the coverage required by the customer.

Burglary
Forcible and unlawful entry into another person's property with the purpose to committing a crime.

Burglary and Theft Insurance
Coverage against property losses due to burglary, robbery, or larceny.

Business Insurance
A policy which primarily provides coverage of benefits to a business as opposed to an individual. It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled.

Business Interruption Insurance
Protection for a business owner against losses resulting from a temporary shutdown because of fire or other insured peril. The insurance provides reimbursement for lost net profits and necessary continuing expenses.

Buy-Sell Agreement
An agreement made by the owners of a business to purchase the share of a disabled or deceased owner. The value of each owner's share of the business and the exact terms of the buying-and-selling process are established before death or the beginning of disability. The funding of a buy sell agreement, when executed, is generally handled with a life insurance policy and disability insurance policy.