Base-line

The given value, e.g. 18 degrees C (i.e. the reference temperature), from which a deviation is measured in a weather derivative. See COOLING DEGREE DAYS; HEATING DEGREE DAYS.

Basic Capital Adequacy Relativity (B.C.A.R.)

This percentage measures a company’s relative capital strength compared to its industry peer composite. A company’s BCAR which is an important component in determining the appropriateness of its rating, is calculated by dividing a company’s capital adequacy ratio by the capital adequacy ratio of the median of its industry peer composite using Best’s proprietary capital mode. Capital adequacy ratios are calculated as the net required capital necessary to support components of underwriting, asset, and credit risks in relation to economic surplus.

Basic compensation

Wages paid to an employee excluding overtime, bonuses, and other types of additional compensation. It may or may not include commission income. This financial amount is a way of determining an employee’s benefits and insurance contributions.

Basic coverage

1. Insurance protection to offset hospital expenses for an individual. 2. Under Blue Cross and Blue Shield plans, this is coverage exclusive of major medical. 3. For Medicare beneficiaries, basic coverage is Medicare Part A and/or Part B exclusive of any supplemental coverage.