- Backdating
- A procedure for making the effective date of a policy earlier than
the application date. Backdating is often used to make the age at issue lower
than it actually was in order to get a lower premium. State laws often limit to
six months the time to which policies can be backdated.
- Bank Loan Plan
- See
Financed Insurance.
- Beneficiary
- A person who may become eligible to receive or
is receiving benefits under an insurance policy other than a participant. See
also Irrevocable Beneficiary, Revocable Beneficiary, Primary Beneficiary,
Secondary Beneficiary, Tertiary Beneficiary, and Contingent Beneficiary.
- Benefits
of Survivorship
- See Survivorship Benefits.
- Binding Receipt
- See Conditional
Binding Receipt.
- Blackout Period
- The period of time during which a surviving
spouse no longer receives survivors benefits (after the youngest child is no
longer eligible) and before he or she is eligible for retirement benefits.
- Business
- The
face amount of Life insurance written.
- Business Insurance
- Policies written for
business purposes, such as key employee, sole proprietorship, partnership, and
corporation.
- Buy-Sell Agreement
- (1) An agreement among part-owners of a business
which says that under stated conditions, i.e., disability or death, the person
withdrawing from the business or his heirs are legally obligated to sell their
interest to the remaining part-owners, and the remaining part-owners are
legally obligated to buy at a price fixed in the agreement; (2) a similar
agreement between an owner or part-owner of a business and a nonowner, such as
a key employee.
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