Insurance Glossary

Showing 24 of 31 matching terms

Terms beginning with F

Face amount

Life insurance

The stated life insurance coverage amount before adjustments described by the policy.

Also called: face value

Facultative certificate

General insurance

Documentation describing the terms of a facultative reinsurance placement for a particular risk.

Facultative reinsurance

General insurance

Reinsurance negotiated for an individual policy or risk rather than an entire portfolio of risks.

Fair claims settlement practices

Claims

State rules and standards governing timely, fair, and nondeceptive handling, investigation, communication, and settlement of insurance claims.

Also called: unfair claims practices

FAIR Plan

General insurance

A state residual-market program providing basic property insurance for eligible properties unable to obtain coverage in the voluntary market.

Fair rental value

Home insurance

Coverage that may replace lost rental income when covered property cannot be rented after a covered loss.

Also called: rental value coverage

Family deductible

Health insurance

A deductible that applies to covered expenses for members enrolled together under a family health plan.

Fidelity bond

Business insurance

Protection that may reimburse an organization for covered losses caused by dishonest acts of specified employees.

Also called: employee dishonesty bond

Fiduciary liability insurance

Business insurance

Coverage for certain claims alleging wrongful acts in administering employee benefit plans.

Also called: ERISA fiduciary coverage

Field adjuster

Claims

A claims professional who inspects loss locations in person and evaluates damage or liability.

Final expense insurance

Life insurance

A type of life insurance often intended to help beneficiaries pay funeral costs and other final expenses.

Also called: burial insurance

Financial responsibility law

Auto insurance

A state law requiring drivers to demonstrate the ability to pay for certain losses arising from motor vehicle accidents.

Also called: proof of financial responsibility law

Financial statement filing

General insurance

A regulatory filing reporting an insurer’s financial condition, operations, and other required data for a stated reporting period.

Also called: statutory filing

Fire department service charge

Home insurance

Coverage that may reimburse a charge for fire department response to a covered property emergency.

Also called: fire service charge

First-party cyber coverage

Business insurance

Cyber insurance covering the insured’s own qualifying costs and losses, such as incident response or data restoration.

First notice of loss

Claims

The initial report to an insurer that a loss occurred and a claim may be opened.

Also called: FNOL

Fixed annuity

Life insurance

An annuity that credits interest or pays income at rates specified or guaranteed by the insurer, subject to contract terms.

Fixed period settlement

Life insurance

A settlement option that pays life insurance proceeds in installments for a chosen number of years.

Flat cancellation

General insurance

Cancellation treated as if the policy had never taken effect, generally returning the full premium when no coverage was provided.

Flexible spending account

Health insurance

An employer-sponsored account that lets employees use pre-tax money for eligible health care expenses, subject to plan rules.

Also called: FSA

Flood in progress exclusion

Auto insurance

An NFIP rule that can bar payment for damage from a flood already in progress when coverage was purchased.

Flood insurance

Home insurance

Separate insurance for covered flood damage, which standard homeowners policies commonly exclude.

Also called: flood coverage

Follow-form policy

General insurance

Excess coverage designed to follow the terms and conditions of identified underlying insurance except where it says otherwise.

Foreign insurer

General insurance

An insurer licensed in a state where it is not incorporated; it is domestic in its state of domicile.