The rating system developed and published annually by A.M. Best Company that indicates the financial condition of insurers. The ratings resemble grades on a report card and range from A++ (Superior) through C+ (Marginal) and all the way down to D (Poor), E (Under Regulatory Supervision), F (In Liquidation), and S (Rating Suspended).
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A rating given to insurance companies by the A.M. Best Company, independent analysts of the insurance industry. The ratings range from A++ (Superior) down to D (below minimum standards). Also, ratings of E and F are given to companies under state supervision or in liquidation. The ratings reflect A.M. Best’s evaluation of an insurance company’s financial strength and operating performance relative to the norms of the property/casualty insurance industry.
Insurance Encyclopedia
Best’s Reports
Financial reports of insurance companies, published annually, and including rating of insurers, financial data, and underwriting results.
Best’
s Capital Adequacy Ratio (BCAR) An important financial benchmark from A.M. Best that is intended to provide an indication as to whether a company has adequate capital to address its insurance and other risk exposures.
Betterment
The amount of the increase in the value of property after it has been reinstated or repaired by the insurer under a contract of indemnity. Insurers make a deduction from the claims payment as the insured’s contribution to ‘betterment’.
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A term used to express the difference in the value of property before loss and after restoration. If a 20-year roof is damaged by an insured peril and it has to be replaced in its 15th year and the restoration renews the 20-year life expectancy, the owner has obtained a 15-year betterment in the roof. Without replacement cost insurance on the roof, the owner is expected to reimburse the insurance company for the betterment entailed in the restoration. Also see Improvements and betterments.Improvement in a property which is considered to add to its value, as distinguished from repairs or replacements where the original value of the property is unchanged.
Beyond economic repair
Where the cost of repairing the insured property, eg a car, exceeds the market value of that property. In such circumstances the insurer will pay the insured the market value of the insured property at the date of loss, subject to the terms of the policy (assuming the insurer is not under any obligation to provide a replacement).
Bhagyashree Child Welfare Insurance
This scheme applicable only to girl children provides for an insurance cover to one orphaned girl child in a family who loses either the father or the mother only due to accident. The scheme broadly provides that in case of such an orphaned girl child who is below the age of six, a fixed amount will be given for looking after the needs of the child to the parent who is alive/the guardian in case both the parents die, till the child attains the completed age of six. This will not be applicable in case of the girls who are more than six years of age at the time of taking the policy. Thereafter, from the age of six to twelve, the girl will get a fixed amount as scholarship, provided that she is admitted in a school and expenditure is incurred on her education. From the age 12 to 18, the girl child will get double the amount as scholarship. After attaining the age of 19, she will get a fixed lump sum either to pursue her own chosen profession, or for carrying on her higher education, or to settle down in case the girl child gets married.
Bhavishya Arogya Insurance
The Policy provides for hospitalization expenses to commence from a pre-determined (retirement) age. The premium when paid annually continues up to the selected age when the benefits commence. The premium can also be paid in single installment. The benefits payable are up to sum insured during the Policy period, with an inner limit per illness.
BI
A shorthand expression for bodily injury.
Bi-fuel vehicles for Motor
Sometimes, in addition to Petrol or Diesel the vehicles have attachments for CNG or LPG as fuel for running the vehicle and as such are subject to increased hazard in the event of accident. Such vehicles require an endorsement in the registration certificate by the RTA. In such cases an additional premium is to be charged for insurance cover.
BI/PD exclusion
Found in D&O policies, refers to the exclusion eliminating coverage for claims for bodily injury or property damage, which is contained in virtually every D&O, EPL, Fiduciary and similar type of insurance policy. The purpose of this exclusion is to avoid the policy covering loss that is typically insured under a company’s comprehensive general liability (CGL) insurance policy.