Car Insurance Jargon

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Beneficiary - The person who is or will be the ultimate recipient of a benefit, such as an insurance payout.

Bilateral contract - Also called "reciprocal" contracts, these are contracts in which the parties involved give mutual promises, such as abiding by certain sets of terms and conditions.

Blanket insurance policy - A policy that covers more than one person or piece of property.

Bona fide - A legal term that refers to actions or persons that are honest and in good faith.

Breach of contract - The failure to perform provisions of a contract without a legal excuse.

Breach of covenant - The failure to obey a legal agreement.

Breakdown cover - A policy that provides recovery and repair services for motorists. Traditionally, breakdown services were provided by the RAC and the AA, but more recently insurance companies have started to offer this sort of policy.

Broker - An agent who brings two parties together, enabling them to enter into a contract to which he is not a principal. His remuneration is usually calculated as a percentage of the sum involved in the contract but may be fixed according to a tariff. Brokers are used because they have specialized knowledge of certain markets or to conceal the identity of a principal, in addition to introducing buyers to sellers.