The Benefit Exclusion is a standard exception to fiduciary liability policies that excludes coverage of benefit claims owed to an applicant if the plan has the funds to make such a payment. For example, suppose that as a result of a lawsuit or settlement, a claimant is entitled to certain amounts of money held in an insured person’s pension plan. If such amounts can be paid out of the plan, it is not the fiduciary policy to make such a payment because it would entail business risk coverage. On the other hand, if an applicant makes a valid claim against a plan that is now defunct or insolvent (from which no funds were available or only limited funds were available), this exception will not prevent payment under such circumstances.
Best Available Control Measures (BACM) is a term used to refer to the most effective measures, according to Environmental Protection Agency (EPA) guidelines, to control fine or airborne particles from sources such as road dust, soot, and wood stove ash. and open firewood burning. wood, meadows or debris.
The Environmental Protection Agency (EPA) has defined Best Available Technology (BDAT) as the most efficient means of treating certain types of hazardous waste available on the market. BDAT may change with the development of treatment technologies.
The Best Capital Adequacy Ratio (BCAR) is an important financial benchmark from A.M. The best, which is intended to indicate whether the company has sufficient capital to cover its insurance and other risks.
Best’s Rating is a rating system developed and published annually by A.M. The best company indicating the financial condition of insurers. Ratings are similar to grades on a report card and range from A++ (excellent) to C+ (marginal) all the way to D (poor), E (regulatory), F (liquidation) and S (suspended). .
An improvement clause is a clause often found in the physical damage section of auto insurance policies that provides that if the repair or replacement of damaged parts results in better than “similar look or quality”, insurers will not pay for that net improvement. . This clause is intended to preserve the concept of indemnity so that the insured does not benefit from losses when the circumstances are such that the insurer cannot repair or replace the property without improving the position of the insured.
Bid Bond is used in conjunction with construction bidding processes. The deposit serves as a guarantee that, in the event that a contract is awarded on the basis of a submitted bid, the contractor will enter into a contract to perform the work at the specified price. If the contractor refuses to enter into a contract to perform work at the agreed price, the security bond reimburses the creditor (owner or superior contractor) for the difference between the non-performing contractor’s bid and the next lowest bid up to the penalty amount of the bond.
Bid deductions are sometimes referred to as an insurance “credit”, this refers to the amount that the contractor will deduct from the price of his contract when the final insurance program is provided for the project.
A bilateral extended coverage clause is an extended reporting clause contained in an insurance policy that allows an insured person to purchase an extended coverage period (ERP) if the insured or insurer decides to cancel or not renew the policy. (This is also known as the “two-way” enhanced reporting provision.)