Glossary

Broad form drive other car coverage is available under a commercial auto (e.g., business auto, auto dealers, motor carrier) policy for employees, executives, or any other person who is supplied a company-owned vehicle but who does not own a personal vehicle and does not have a personal auto policy (PAP). This coverage is available via the Drive Other Car Coverage—Broadened Coverage for Named Individuals (CC 99 10) endorsement. It may be added to the commercial auto policy of the company that furnishes the automobile to afford protection for the named individual or resident spouse while driving an auto borrowed from a third party. Nonowned auto coverage under such an endorsement may include auto liability, auto medical payments, auto physical damage, and uninsured motorists (UM)/underinsured motorists (UIM) coverage. The types of coverage afforded, applicable limits, and deductible amounts will be displayed in the endorsement schedule. An additional premium applies when this endorsement is attached.

Broad form hold harmless clause refers to a hold harmless clause under which the indemnitor assumes any and all liability of the indemnitee under specified circumstances, including liability arising out of the indemnitee's sole fault. Particularly with respect to construction contracts, statutes in a number of states restrict the enforceability of broad form hold harmless agreements.

A broad form named insured endorsement is an endorsement added to a liability policy to reduce the insurance administrative problems that large corporations encounter in acquiring new entities by covering all entities for which the insured is responsible. Most of these endorsements are similar to the following: "The Named Insured includes all subsidiaries, affiliated, associated, controlled or allied companies, corporations, or firms as now or hereafter constituted, for which the Named Insured has responsibility for placing insurance and for which similar coverage is not otherwise more specifically provided."

Broad form property damage (BFPD) is the liability exposure represented by the risk of loss to property in a contractor's care, custody, or control (CCC) or on which contracted operations are being performed. Because of the scope of exclusions applicable to these two risks of loss in the 1973 comprehensive general liability (CGL) form, an endorsement was necessary to provide coverage for the BFPD hazard. Coverage for the same exposure is provided automatically in 1986 edition and subsequent commercial general liability (CGL) forms by means of exceptions to the CCC and property damage (PD) exclusions.

A broker is an insurance intermediary 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.

A brokerage department is an insurance company department that aids brokers in placing business, frequently on a worldwide basis.

The brokerage market refers to reinsurers that write business through reinsurance intermediaries. Reinsurers that do not generally accept such business are referred to as the direct market.

Brother-sister relationship is a term that first emerged during the Humana tax case ( Humana Inc. v. Commissioner, 881 F.2d 247 (6th Cir. 1989)), referring to separate subsidiaries owned by the same parent (such as a captive insurance company and an operating subsidiary).

Brownfield refers to an abandoned, idle, or underused industrial or commercial facility where expansion or redevelopment is complicated by real or perceived environmental contamination. Such sites have a lesser degree of contamination than Superfund sites. However, there is enough possibility of contamination to cause substantial concern to developers, investors, or others who might otherwise use the property.

Brownian motion refers to the tendency of high-yield (junk) bonds to experience a large diffusion component—that is, information relative to the bond's investment quality and pricing vis-à-vis the issuer's financial condition tends to filter down to investors gradually. This feature of high-yield bonds allows investors time to sell prior to default.