|
Home Page
Company Ratings
Apply
Paramed Exam
LongTermCare
OurProfile
Our Mission
ContactUs
Glossary
Table of Contents
Member of the Better Business Bureau
| |
 | Face Amount: The amount stated on the face of
the policy that will be paid in case of death or at the maturity of the
policy. It does not include additional amounts payable under accidental
death or other special provisions, or acquired through the application of
policy dividends.
| 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.
| Facility of Payment: A contractual
provision that allows the insurer, under stated conditions, to pay insurance
benefits of up to $1,000 to a person or persons other than the insured, the
designated beneficiary, or the insured's estate.
| 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 Plan: A facility, operating under a
government-insurance industry cooperative program, to make fire insurance
and other forms of property insurance readily available to persons who have
difficulty obtaining such coverage.
| Fair premium: the premium level that is just
sufficient to fund an insurer’s expected costs and provide insurance
company owners with a fair return on their invested capital.
| Fair Rental Value: Amount payable to an
insured homeowner for loss of rental income due to damage that makes the
premises uninhabitable.
| Family Expense Policy: A policy which
insures both the policyholder and his/her immediate dependents (usually
spouse and children).
| Family Income Policy: Special life
insurance policy combining decreasing term and whole life insurance that
pays a monthly income of $10 for each $1000 of life insurance if the insured
dies within the specified period. The monthly income is paid to the end of
the period, at which time the face amount of insurance is paid.
| Family Policy: A life insurance policy
providing insurance on all or several family members in one contract,
generally whole life insurance on the principal breadwinner and small
amounts of term insurance on the other spouse and children, including those
born after the policy is issued.
| 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.
| Farmowners-Ranchowners 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.
| Fidelity Bond: Bond that protects an employer
against dishonest or fraudulent acts of employees, such as embezzlement,
fraud, or theft of money.
| Final average formula: A pension plan
formula that bases retirement benefits on earnings during recent years of
employment.
| 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 excapes 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.
| Fixed Amount Option: Life insurance
settlement option in which the policy proceeds are paid out in fixed
amounts..
| Fixed Annuity: Annuity whose periodic payment
is a quaranteed fixed amount.
| Fixed Period Option: Life insurance
settlement option in which the policy proceeds are paid out in fixed
amounts.
| 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.
| Flexible Premium Policy or
Annuity: A life accident policy or annuity under which the policyholder
or contractholder may vary the amounts or timing of premium payments.
| Flexible Premium
Variable Life Insurance: A life insurance policy that combines the
premium flexibility feature of universal life insurance with the
equity-based benefit feature of variable life insurance.
| 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 flood.
| 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.
| Forfeitures: Amounts contributed on behalf of
terminated, non-vested participants. In a pension plan, such amounts must be
applied to reducing future employer contributions. In a profit-sharing plan,
such amounts may be allocated to the accounts of remaining participants.
| 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 instrments.
| Fortuitous Loss: Unforeseen and unexpected
loss that occurs as a result of chance.
| 401(k) Plan: A salary reduction plan that allows
employees to contribute a portion of their salaries on a tax-deferred basis.
| 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 Life Insurance: Life
insurance provided by fraternal orders or societies to 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.
| Funded Retirement Plan: A plan under
which funds are set aside in advance to provide expected benefits
| Funding Agency: A financial institution or
individual that provides for the accumulation or administration of the
pension contributions that will be used to pay pension benefits.
| Funding Instrument: An insurance contract
or trust agreement that states the terms under which the funding agency will
accumulate, administer, and disburse the pension funds.
| 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. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
