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INSURANCE LEGAL GLOSSARY |
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Glossary of
Insurance Terms
A
B C
D E
F G
H I
J K L
M N
O P
Q R
S T
U V
W X Y Z #
Click on
the first letter of the word from the list above to go to
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- B -
Benefit Levels: The maximum amount a
person is entitled to receive for a particular service or services as spelled
out in the contract with a health plan or insurer. (H)
"Bad Faith" Insurance: The most
common scenarios for Bad Faith Insurance include the following:
1. Low-balling - unreasonably low offer to compensate for damages.
2. Delay or Denial of a claim without reason.
3. Ambiguous policy wording.
4. Failure to investigate or perform due diligence.
5. Failure to act within a reasonable time.
6. Delay in payment while waiting on a settlement with a third-party
insurer.
7. Intentional deception and fraud.
8. Refusing a settlement offer and then losing in court for an amount larger
than is provided for in the policy.
Backdating: A procedure for making the
effective date of a policy earlier than the application date. Backdating is
often used to make the age at issue lower than it actually was in order to get a
lower premium. State laws often limit to six months the time to which policies
can be backdated.
Basic Auto Policy: Although still used
today to insure substandard risks, two-wheel motorized vehicles, and commercial
autos, the Basic Auto Policy has been primarily replaced by the Personal Auto
Policy, which combines both physical damage coverage and liability insurance for
claims arising out of the ownership or use of a vehicle.
Basic Limits of Liability: The least
amount of liability coverage that can be purchased, which is generally
equivalent to the minimum amount required by state law. In determining rates, a
carrier will use the basic limits to develop the base rates. If an insured
person wants higher limits, the carrier applies an increased limits factor to
the base rate in calculating the new premium for the increased coverage.
Beneficiary: A person who may become
eligible to receive or is receiving benefits under an insurance policy other
than a participant.
Benefit Maximum: The time period for which
payments for benefits of an insurance policy are available. Benefit Package: A
description of what services the insurer or health plan offers to those covered
under the terms of a health insurance contract.
Benefit Period: Defines the period during
which a Medicare beneficiary is eligible for Part A benefits. A benefit period
is 90 days which begins the day the patient is admitted to a hospital and ends
when the individual has not been hospitalized for a period of 60 consecutive
days.
Binder: A temporary insurance contract
that provides proof of coverage until you receive a permanent policy from the
company. A binder is subject to the payment of a premium.
Blackout Period: The period of time during
which a surviving spouse no longer receives survivors benefits (after the
youngest child is no longer eligible) and before he or she is eligible for
retirement benefits.
Bodily Injury Liability: Insurance that
pays for another person's bodily injury or death in an automobile accident
caused by you. It compensates those people for pain, suffering, and other
personal hardships, and will also pay for some economic damages (i.e., lost
wages).
Boston Plan: This is a plan under which
insurers agree that they will not reject property coverage on residential
buildings in a slum area. Instead, they will accept the coverage until there has
been an inspection and the owner has had an opportunity to correct any faults.
Boston was the first city to originate such a plan, and many other cities have
followed, including New York, Oakland, Cleveland, and Buffalo.
Broker: An insurance salesperson who deals
with agents and companies to find insurance for consumers.
Burial Policy: A policy to cover funeral
and burial costs.
Business Insurance: Policies written for
business purposes, such as key employee, sole proprietorship, partnership, and
corporation.
Business Interruption Insurance: A time
element coverage that pays for loss of earnings when operations are curtailed or
suspended because of property loss due to an insured peril. Now referred to as
"business income insurance."
Business Personal Property: Traditionally
known as "contents," this term actually refers to furniture, fixtures,
equipment, machinery, merchandise, materials, and all other personal property
owned by the insured and used in the insured's business.
Business: The face amount of life
insurance written.
Buy-Sell Agreement: (1) An agreement among
part-owners of a business which says that under stated conditions, i.e.,
disability or death, the person withdrawing from the business or his heirs are
legally obligated to sell their interest to the remaining part-owners, and the
remaining part-owners are legally obligated to buy at a price fixed in the
agreement; (2) a similar agreement between an owner or part-owner of a business
and a non-owner, such as a key employee.
DISCLAIMER: The
information contained within this personal injury site is of a general nature
and is not meant to be a restatement of any rules of law. Your
use of this site does not create an attorney-client
relationship. You should hire an attorney to obtain legal
advice for your specific case.
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Consultwebs.com, Inc., All rights reserved. Personal
Injury Law
Glossary.
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