Bordereau
A detailed report or schedule submitted by an insured party or broker to an insurance company, listing individual risks, premiums, or claims under a policy. It's commonly used in reinsurance and open cover arrangements to track coverage details.
Example
“The shipping company submits monthly bordereau reports to their marine insurer, detailing each cargo shipment, its value, and destination to calculate the appropriate premium charges.”
Memory Tip
Think 'Border' + 'Report' - a bordereau borders on being a detailed border-to-border report of insurance information.
Why It Matters
Bordereau reporting ensures accurate premium calculations for variable risks and provides transparency between insurers and insured parties. It's essential for businesses with changing inventory levels or varying risk exposures throughout the policy period.
Common Misconception
Many people think a bordereau is just another insurance form, but it's actually a dynamic reporting tool that directly affects premium calculations and coverage. Inaccurate or late bordereau submissions can result in coverage gaps or premium penalties.
In Practice
An import/export company has an open marine cargo policy requiring monthly bordereau reports. In January, they report $2 million in shipments at a 0.5% rate, paying $10,000 in premium. In February, they report $3.5 million in higher-risk shipments at 0.75%, paying $26,250. The bordereau system ensures they pay premiums that match their actual risk exposure each month.
Etymology
From French 'bordereau' meaning 'memorandum' or 'statement,' originally from 'border' meaning 'to edge' or 'to list,' reflecting its use as a detailed listing document.
Common Misspellings
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