Glossary

The basic extended reporting period (BERP) is the extended reporting periods (ERPs) the 1986 Insurance Services Office, Inc. (ISO), claims-made commercial general liability (CGL) policy automatically provides to the insured when a claims-made policy is canceled, not renewed, renewed with a laser exclusion, or renewed with an advanced retroactive date.

Basic limits refer to the minimum limits of liability that can be purchased by an insured.

The basic premium is the underwriting and administrative expense component of premium. It is amounts required for adjusting of expected losses.

The basic premium factor (BPF) is used in the retrospective formula to represent expenses of the insurer, such as acquisition, audit, administration, and profit or contingencies but not taxes.

Basic rate refers to the manual rate shown in an insurer's rate manual at basic limits before adjustment for such factors as increased limit of liability.

Basis point(s) refers to a way of expressing, using a base of 100, the increments of measurement between percentage points.

Basis risk is the difference between an index and a specific portfolio of losses (relying upon that index) as the underlying basis for a hedge.

The basket aggregate is an aggregate loss limit applicable to multiple lines of coverage, such as liability and workers compensation.

A basket deductible is a single retained amount designed to fund losses from multiple risks.

A basket retention is a self-insured retention applicable to more than one category of risk, such as liability and workers compensation.