Bad Faith
Conduct where an insurer unreasonably denies, delays or underpays a valid claim.
Why it matters: A proven bad-faith claim can expose the insurer to damages beyond the original policy limit.
12 terms
Dictionary — B
Bad Faith, Balance Transfer, Balloon Payment, Basis and more. Each definition explains what the term means and why it changes a number.
Balance Transfer
Moving a credit card balance to another card, usually at a promotional rate, for a fee of three to five percent.
Why it matters: It only works if the balance clears before the promotional window closes; after that the rate is often higher than where you started.
Run the balance transfer savings →Balloon Payment
A single large payment due at the end of a loan whose regular instalments did not fully amortise the balance.
Why it matters: It keeps monthly payments low while creating a refinancing problem on a fixed date.
Run the loan payment →Basis
The amount invested in an asset for tax purposes, including purchase price and qualifying improvements.
Why it matters: Every dollar of basis you can document is a dollar of gain you do not pay tax on.
Run the capital gains tax →Break-Even Point
The sales volume at which total revenue exactly covers fixed and variable costs.
Why it matters: It is the first number that tells you whether a price change or a cost cut moves the business more.
Run the break-even point →Burden of Proof
The obligation to prove a disputed fact. In most civil claims it is the balance of probabilities, not beyond reasonable doubt.
Why it matters: It is why documentation, not conviction, decides claims.
Back-End Ratio
All monthly debt payments divided by gross monthly income.
Why it matters: It is the ratio that usually binds first for borrowers with car loans or student debt.
Run the debt-to-income ratio →Bad Debt
Amounts owed that will not be collected and are written off.
Why it matters: Under a recourse factoring agreement this remains your loss, not the factor's.
Run the invoice factoring cost →Base Flood Elevation
The height floodwater is expected to reach in a one percent annual chance flood.
Why it matters: Building above it can cut a flood premium dramatically, and an elevation certificate is the proof.
Run the flood insurance cost & coverage →Bodily Injury Liability
The part of an auto policy paying for injuries you cause to other people.
Why it matters: It is stated per person and per accident, and both limits matter in a multi-occupant collision.
Run the uninsured motorist gap →Bridge Loan
Short-term financing covering the gap between buying one property and selling another.
Why it matters: It removes a timing problem at a high rate, and it becomes expensive if the sale stalls.
Run the heloc & home equity loan →Business Interruption
Coverage replacing income lost while a covered loss stops normal operations.
Why it matters: It is often the largest part of a commercial claim and the part most frequently underinsured.
Run the data breach cost →Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.