Glossary

Avoidance is a risk management tactic whereby risk of loss is prevented in its entirety by not engaging in activities that present the risk.

"A" rates refer to premiums charged for insurance that do not have loss experience statistics as a foundation for their development. The underwriter develops these rates subjectively, on an individual risk basis, according to what the underwriter believes is an equitable rate commensurate with risk involved.

A back-to-back deductible refers to a deductible arrangement under which the deductible under the policy equals the policy limits.

Backdated liability insurance is coverage procured for claims after a loss event has actually happened.

Backhauling refers to a trucker's practice of hauling certain cargo one way and, on the return trip, hauling a different cargo or cargo of an unknown type or kind for a fee.

Back pay constitutes damages claimed by a former employee representing wages and benefits that would have been paid to the former employee from the time the employee was terminated up to the time in which a claim is settled or a judgment is rendered.

Bad faith is the term describing blatantly unfair conduct that exceeds mere negligence by an insurance company.

A bailee is a person or organization to which possession of the property of others has been entrusted, usually for storage, repair, or servicing.

Bailee coverage is inland marine coverage on property entrusted to the insured for storage, repair, or servicing.

Balance is a reinsurance underwriter's benchmark that measures premium volume against the limit exposed under a reinsurance agreement.