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.

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.

Committees formed by members of a corporate board of directors that are created to address a particular aspect or feature of the corporation. Three of the most common board committees and their responsibilities include
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Committees formed by members of a corporate board of directors that are created to address a particular aspect or feature of the corporation. Three of the most common board committees and their responsibilities include (1) audit (overseeing the company&#8217s financial, accounting, and internal and external audit functions), (2) nominating (identifying and recruiting new/additional board members and officers), and (3) compensation (recommending appropriate compensation levels for the company&#8217s management, as well as compensation for members of the board). Board committees normally consist of two to four members of a corporate board of directors.

A special package policy for boat owners that combines physical damage insurance, medical expense insurance, liability insurance, and other coverage’s in one contract.

Coverage for loss arising out of the operation of pressure, mechanical, and electrical equipment. It may cover loss to the boiler and machinery itself, damage to other property, and business interruption losses.
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Covers losses resulting from the malfunction of boilers and machinery. This coverage is usually excluded from property insurance creating the need for this separate product.

US: (e.g., fidelity bonds) or the failure to perform a specific act (e.g., performance or surety bonds). The principal (i.e., the party paying the bond premium) is also called the obligor (i.e., the party with the obligation to perform). If there is a default, the surety (i.e., the insurer) pays the loss of the third party (the obligee). The obligor must then reimburse the surety for the amount of loss paid.
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MEDICAL,USA: 1. Certificate of debt that contains a promise to pay and issued either on the security of a mortgage, a deed of trust, or on the credit of the issuer. 2. Obligation (fidelity bond) of an insurance company to protect the insured against financial loss caused by dishonesty of a covered employee. It would pay the insured up to the limits of the policy for such a loss. 3. Certificate of ownership of a specified portion of a debt due by the federal government to holders, bearing a fixed rate of interest.
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US: A certificate issued by a government or corporation as evidence of a debt. The issuer of the bond promises to pay the bondholder a specified amount of interest for a specified period and to repay the loan on the expiration (maturity) date.
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A contract between three parties: a principal, a surety, and an obligee. The bond is issued by the surety and promises the obligee financial protection in case the principal fails to perform a duty or is found to be dishonest.
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A document for expressing surety. A bond engages three entities the surety (bonding company) sells the bond to the principal for the purpose of paying the amount the principal will owe to the obligee upon failure of the principal to perform some act or provide some service under agreed terms.
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Three Party Contract guaranteeing that if one person, the Principal Obligator, fails to perform as specified or proves to be dishonest, the person to whom the duty is owed, the Obligee, will be financially protected by the Insurer of the Bond, i.e., the Surety.

US: A marketing specialist who represents buyers of property and liability insurance and who deals with either agents or companies in arranging for the coverage required by the customer.
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UK: a professional adviser who assists a client to obtain the insurance cover sought; although strictly an agent for the insured, the broker is remunerated by way of commission from the insurer.
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US: An insurance intermediary who/that represents the insured rather than the insurer. Since they are not the legal representatives of insurers, brokers, unlike independent agents, often do not have the right to act on behalf of insurers, such as to bind coverage. While some brokers do have agency contracts with some insurers, they usually remain obligated to represent the interests of insureds rather than insurers. For example, some state insurance codes impose a fiduciary responsibility to act on behalf of their customers or provide full disclosure of all their compensation from all sources.
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At Lloyd’s, brokers act as the agent of the insured or reinsured to arrange insurance or reinsurance with Lloyd’s syndicates. Brokers may be registered Lloyd’s Brokers who are able to enter into terms of business agreements with any Lloyd’s managing agent. Non-Lloyd’s brokers may also enter into terms of business agreements subject to the managing agent assessing that the broker meets certain minimum standards. Only brokers registered as Lloyd’s Brokers may refer to themselves as a Lloyd’s Broker. Many broking firms are also approved by Lloyd’s to act as a coverholder (See Coverholder).**********State-licensed sales and service representative who handles insurance for his or her clients and may represent and sell insurance of various types and for several companies. By law, a broker may be an agent to the insurer for certain purposes such as delivery of the policy or collection of the premium. Also called licensed broker .
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A licensed person or organization paid by you to look for insurance on your behalf.
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An intermediary who negotiates reinsurance contracts between the ceding company and the reinsurer(s). The broker generally represents the ceding company and receives compensation in the form of commission, and/or other fees, for placing the business and performing other necessary services.
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A broker is an intermediary between a customer and an insurance company. Brokers typically search the market for coverage appropriate for their clients. A property/ casualty insurance broker generally works in commercial rather than personal lines insurance and receives either a commission or a fee for his or her ability to place insurance. Brokers do not have an agency relationship with insurance companies they place coverage with. Life/health insurance brokers work in much the same way as property/casualty brokers except they often work with individual clients. (See Agent).
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A person who acts on behalf of another to obtain insurance. They may also represent the insurer in a limited capacity, for example, to collect premiums.
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MEDICAL,USA,REFERENCE: See: agent .
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MEDICAL,USA: State-licensed sales and service representative who handles insurance for his or her clients and may represent and sell insurance of various types and for several companies. By law, a broker may be an agent to the insurer for certain purposes such as delivery of the policy or collection of the premium. Also called licensed broker .

A property insurance policy that is designed to cover property in the course of construction. There is no single standard builders risk form; most builders risk policies are written on inland marine (rather than commercial property) forms. Coverage is usually written on an all risks basis and typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builders risk insurance can be written on either a completed value or a reporting form basis; in either case, the estimated completed value of the project is used as the limit of insurance.
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A property insurance policy that is designed to cover property in the course of construction. There is no single standard builders risk form most builders risk policies are written on inland marine (rather than commercial property) forms. Coverage is usually written on an all risks basis and typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builders risk insurance can be written on either a completed value or a reporting form basis in either case, the estimated completed value of the project is used as the limit of insurance.

The key Insurance Services Office, Inc. (ISO), direct damage commercial property coverage form. This form (CP 00 10) covers buildings, business personal property, and personal property of others for direct loss or damage, subject to the limits shown in the declarations for each of these categories. Also provides additional coverages and coverage extensions, including
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The key Insurance Services Office, Inc. (ISO), direct damage commercial property coverage form. This form (CP 00 10) covers buildings, business personal property, and personal property of others for direct loss or damage, subject to the limits shown in the declarations for each of these categories. Also provides additional coverages and coverage extensions, including debris removal, pollutant cleanup, preservation of property, fire department service charges, increased cost of construction, electronic data, newly acquired or constructed property, personal effects and personal property of others, off-premises property, valuable papers and records, outdoor property, and nonowned detached trailers.

Coverage against property losses due to burglary, robbery, or larceny.