See: Gramm-Rudman-Hollings Act .
Insurance Encyclopedia
Balanced Portfolio
The total business of an insurer that has been so arranged by selection and reinsurance as to safeguard the financial equilibrium of the Company.
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UK: Insurers may seek to arrange their insurance and reinsurance so that their total business constitutes a well-balanced range of risks and so do not become unduly committed in a limited number of areas, activities or types of risk. The aim is to spread the exposure by a controlled underwriting approach.
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Refer: “Reinsurance, Balanced Portfolio.”
Balancing charge
A tax payable by a shipowner who receives a claim payment in excess of the book value of the ship. The excess is deemed to be a taxable profit.
Balancing Charges
Term used to describe the tax which a ship owner may have to pay if he receives an insurance claim payment in excess of the book value of his ship and is therefore deemed to have made a profit accordingly.
Ballast
Any material intended to provide stability the ship.
Balloon Loan
loan in which small periodic payments are made during the term of the loan. These sums are not sufficient to pay the full loan so that at the end of the period there is a need to refinance the loan since the last payment is a balloon or large amount that was not expected to be paid in full.
Balloon Payment
A final installment on an obligation that is greater than the preceding payments, and which discharges the obligation.