Facility: A pooling mechanism for insureds not able to obtain insurance in the
voluntary market. Insurers write and issue policies but cede premium and losses on those
policies to a central pool in which all insurers share.
Factory Mutual: Mutual insurance company insuring only properties that meet high
underwriting standards. Emphasizes loss prevention.
Facultative Reinsurance: A type of reinsurance in which the reinsurer can accept or
reject any risk presented by an insurance company seeking reinsurance.
Fair Plan: A facility, operating under a program of the government and the insurance
industry, to make fire insurance and other forms of property insurance readily available to
persons and businesses for whom such insurance is not easily available or affordable.
Fair Rental Value: Amount payable to an insured homeowner for loss of rental income
due to damage that makes the premises uninhabitable.
Family Purpose Doctrine: Concept that imputes negligence committed by immediate family
members while operating a family car to the owner of the car.
Farm Mutual: Local mutual insurance company that insures farm property in a limited
geographical area primarily through assessable policies.
Farm owners - Ranch owners Policy: A package policy for a farm or a ranch, providing
property and liability coverages against personal and business losses.
Federal Crime Insurance: Insurance against burglary, larceny, and robbery losses
offered by the federal government where the Federal Insurance Administration has determined
that an insurance availability problem exists.
Federal Crop Insurance: Comprehensive coverage at rates subsidized by the federal
government for unavoidable crop losses, including those that result from hail, wind,
excessive rain, drought, freezes, plant disease, snow, floods, and earthquake.
Federal Flood Insurance: Insurance sold by private insurers with rates subsidized by the
federal government to persons who reside in flood zones and whose community joins the
program and agrees to establish and enforce flood control and land use measures.
Federal Surety Bond: Type of surety bond required by federal agencies that regulates the
actions of business firms. It guarantees that the bonded party will comply with federal
standards, pay all taxes or duties accrued, or pay any penalty if the bondholder fails to
pay.
Federal servant Doctrine: Common law defense blocking an injured employee from
collecting workers compensation benefits if he or she sustained an injury caused in any
way by the negligence of a fellow worker.
Fidelity Bond: A form of protection which reimburses an employer for losses caused
by dishonest or fraudulent acts of employees.
Fiduciary: A person who holds something in trust for another.
Financial Responsibility Law: A state law under which a person involved in an
automobile accident may be required to furnish security up to certain minimum dollar
limits.
Financial Responsibility Law: A state law which may require motorists to furnish
evidence, either before or after involvement in an auto accident (depending on the
individual state's law), of ability to pay for damages up to certain minimum dollar
limits. These requirements commonly are met by carrying auto liability insurance with
specified minimum limits or more.
Fire: A combustion accompanied by a flame or glow, which escapes its normal
confines to cause damage.
Fire Insurance: Coverage for losses caused by fire and lightning, plus resultant
damage caused by smoke and water.
Fire Legal Liability: Liability of a firm or person for fire damage caused by
negligence of and damage to property of others. First party claim: a demand made by a
policyholder reporting an insured event directly to his company.
First Party Coverage: An insurance coverage under which the policyholder collects
compensation for losses from the insured's own insurer rather than from the insurer of
the person who caused the accident.
Flat Schedule: A type of schedule in group insurance under which everyone is
insured for the same benefits regardless of salary, position, or other circumstances.
Flex rating Law: Type of rating law in which prior approval of the rates is
required only if the rates exceed a certain percentage above and below the rates
previously filed.
Floaters: Insurance policies that cover property that can be moved from one
location to another for both transportation perils and perils affecting property at a
fixed location.
Flood Insurance: Coverage against loss resulting from the flood peril, widely
available at low cost under a program developed by the private industry and the federal
government.
Foreign Insurer: An insurer is a foreign company in any state other than the one in
which it is incorporated.
Forgery or Alteration Coverage Form: Commercial crime insurance form by the
Insurance Services Office that covers loss resulting from the forgery or alteration of
checks, drafts, bills of exchange, promissory notes, and similar instruments.
Fortuitous Loss: Unforeseen and unexpected loss that occurs as a result of chance.
Franchise Deductible: Deductible commonly found in marine insurance contracts in
which the insurer has no liability if the loss is under a certain amount, but once this
amount is exceeded, the entire loss is paid in full.
Franchise Insurance: A form of insurance in which individual polices are issued to
the employees of a common employer or the members of an association under an arrangement
by which the employer or association agrees to collect the premiums and remit them to the
insurer.
Franchise Insurance: Insurance under individual contracts issued to the employees of
a common employer or the members of an association under an arrangement by which the employer
or association agrees to collect the premiums and remit them to the insurer. The insurer
usually agrees to waive its right to discontinue or modify any individual policy, unless its
simultaneously discontinues or modifies all other policies in the same group.
Fraternal Insurance: A cooperative type of insurance provided by social
organizations for their members.
Fraternal Society: A social organization that provides insurance for its members.
Fronting Company: A domestic insurance company that provides claims or administrative
services to a captive.
Fully Insured: Insured status of a covered person under the Old-Age, Survivors, and
Disability Insurance (OASDI) program if he or she meets certain criteria: forty quarters of
coverage or has one quarter of coverage for each year after 1950 (or after age twenty-one, if
later) up to the year of death. disability. Or attainment of age sixty-two.
Future Increase Option: A provision found in some policies that allows the insured
to purchase additional disability income insurance at specified future dates regardless of
the insured's physical condition.
Future Service Benefits: Benefits accruing for service after the effective date of
coverage under the plan.
Click on the letter of alphabet, which the word you are looking for begins with:
