Blue Shield plan
A physician expense insurance plan
offered by a regionally-operated health care provider affiliated
with a large national nonprofit health care organization. This plan
generally provides benefits on a "service-type" basis.
branch manager
The individual in charge of a field
office of an insurance company that uses the branch office
distribution system. Also called a general manager. See also branch
office distribution system.
branch office distribution system
A common system for
selling individual life insurance. Under this system, the soliciting
agents who work out of a branch office are under contract to the
insurance company, not to the branch manager, and the agents receive
commissions directly from the insurance company. The branch office
manager, supervisors, and clerical personnel in the field office are
employees of the insurance company, and these employees are subject
to the same types of controls normally exercised by an employer. See
also agency system, branch manager, and general agency distribution
system.
break in service
The length of time between the date an
employee leaves a firm and the date the employee resumes working for
that firm. For pension and employee benefit plan purposes in the
United States, a plan participant cannot be deprived of benefits
which accumulate before a break in service unless the break is
longer than (1) five years or (2) the amount of time that the
participant has been employed when the break commences, whichever is
greater.
bridging supplement
In Canada, a supplemental pension
provided to a pension plan participant who retires before age 65.
The bridging supplement is generally used to integrate private
pension plans with public pension plans. If a pension plan
participant retires before age 65, the plan sponsor can provide a
bridging supplement until the retiree begins to receive payments
from the public pension plans at age 65. The combined benefit
payment that the participant receives remains level and is the same
as the participant would have received had he or she waited until
reaching age 65 before beginning to receive benefits. The sponsor is
providing an amount in addition to the basic pension payment. Also
known as a bridging benefit. Compare to the notched option.
broker
(1) An insurance salesperson agent who sells
insurance products for more than one insurance company. (2) For a
career agent, to submit insurance applications to companies other
than the agent's own company.
brokerage distribution system
A distribution system
that relies on commissioned agents, called brokers, who sell the
products of more than one insurance company.
brokerage manager
A salaried insurance company employee
or an independent agent whose responsibility is to appoint brokers
on behalf of the company and to encourage brokers to sell the
products of a particular insurance company.
brokerage shop
An agency operated by an independent
general agent who is under contract to a number of insurance
companies. Also known as a brokerage general agency.
broker-dealer
A firm that provides information or
advice to its customers regarding the sale and/or purchase of
securities and that serves as a financial intermediary between
buyers and sellers by manufacturing or acquiring securities in order
to market them to its customers.
bundled insurance product
An insurance product in which
the mortality, investment, and expense factors used to calculate
premium rates and cash values are not identified separately in the
policy. Traditional whole life insurance is an example of a bundled
insurance product. See also unbundled insurance product.
business-continuation insurance
A type of business
insurance designed to provide funds so the remaining partners in a
business, or the remaining stockholders in a closely-held
corporation, can buy the business interest of a deceased or disabled
partner or stockholder. See also partnership insurance and stock
repurchase insurance.
business insurance
Insurance that is intended to serve
the insurance needs of a business rather than the needs of an
individual.
Buyer's Guide
In the United States, a publication that
many states require insurance companies to give to an applicant for
life insurance. The Buyer's Guide helps the applicant make an
informed choice among policies.
