Insurance Terms

Base Year

The base year is the year prior to the year you complete the FAFSA (Free Application for Federal Student Aid) when applying for student financial aid.
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Basis

The original cost, plus out of pocket expenses, of an asset (such as property, stock, or a business interest) that is used to determine gain or loss when the asset is disposed, whether through sale, gift, or bequest. The basis is affected by the nature of the transaction by which the asset was acquired. For example, property received as a gift will have a different method of basis determination than property purchased at fair market value.
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Bear Market

A falling market, or a market in which prices are generally decreasing. A bear market in stocks is usually brought on by the anticipation of declining economic activity while a bear market in bonds is usually caused by rising interest rates.
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Beneficiary

An individual designated in a will to receive an inheritance, or the individual designated to receive the proceeds of an insurance policy, retirement account, trust, or other asset.
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Benefit Period

The period of time benefits are received based on a contractual agreement. The term is commonly used to refer to health or disability benefits.
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Blue Chip Stock

Stock of large, stable, financially strong companies that have a long history of profits, dividend payments, and a reputation for quality management, products, and services.
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Bodily Injury Liability Coverage

Part of a standard auto insurance policy that covers you (up to the policy limits) for losses that result when you inflict bodily injuries on others. Covered losses generally include medical expenses, pain and suffering, and lost income. This is required coverage in most states.
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Borrowings

Borrowings are loans of any type.
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Bull Market

A rising market, or a market in which prices are generally increasing for stocks, bonds, or commodities.
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Business Overhead Expense Insurance

A business disability policy designed to pay the ongoing expenses of a business in the event the business owner becomes disabled.
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Buy-Sell Agreement

A contract used in business succession planning for sole proprietors, partnerships, and closely held corporations that provides for the sale of a business upon an owner's death, disability, retirement, or other triggering event.
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