Occurs where an agent, acting in excess of his actual or apparent authority, ‘contracts’ with or commits, a third party. The breach does not bind his principal and is actionable against the agent by the third party. ‘Breach of warranty of authority’ is insured as a ‘wrongful act’ under a directors’ and officers’ liability policy and is covered under professional indemnity policies.
Insurance Encyclopedia
Break in service
Length of time between the date an employee leaves a company and the date the employee resumes work for that company. For pension and employee benefit plans, a plan participant cannot be deprived of benefits that accumulate before a break in service unless the break is longer than (1) five years or (2) the amount of time that the participant has been employed when the break commences, whichever is greater.
Break-even point
Level of membership in a managed care plan at which the situation of total revenues and total expenses are equal and produce neither a net gain nor loss from operations.
Break-Up Basis
A valuation basis which assumes that the writing of new business ceases. Also known as a wind-up basis.
Break-up Risk
Insurance to cover the Hull and Machinery of a Vessel that is proceeding on its last voyage to a break-up yard.
Breakage for Damages in Transit
To come apart, smash, burst, to cut open the surface of the skin or base. A casualty to the vessel or conveyance may cause breakage in brittle, fragile cargo.
Breakdown Insurance
Breakdown Insurance covers Electrical Plant, Oil Engines, Steam Engines and Pumps and Air Compressors which are the main classes of a plant. Breakdown means the breaking of any pat of while the plant is running which causes a sudden stoppage and necessitates repairs before work can be resumed. Under this Insurance wear and tear and certain types of failure peculiar to some kinds of plant are excluded.
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A form of motor insurance covering the expenses incidental to the breakdown of a car, such as towage, hire, getting the car home, and hotel expenses.
Breakdown recovery
Cover sometimes added to motor insurance whereby the insurer recovers vehicles from the scene of a breakdown as distinct from the scene of an accident. Recovery following an accident is an integral part of the cover under comprehensive motor policies. Extended warranty insurances often include breakdown recovery.
Breakdown/Breakdown insurance
Boilers, pressure vessels, cranes, lifts and other lifting equipment, engines, electrical equipment may be insured against breakdown under the engineering policy. Breakdown generally means the breaking or burning of any part of the plant while it is running that causes a sudden stoppage that necessitates repair before resuming work although there may be specific definitions for particular forms of plant. Basic breakdown cover relates to self-damage, but cover is usually extended to damage to surrounding property, public liability, fragmentation, consequential loss, hired-in plant damage and deterioration of stock.
Breaking Arrears
Applying advance payments of one Policy owner to another Policy owner’s arrears. it is a falsification of records and a form of embezzlement.