Insurance and risk management terminology · MLC-0106

Insurance and risk management terms: F (219)

• Face amountThe sum of money specified in a life insurance policy that the insurer pays to the beneficiary upon the death...
• Facility emergency coordinatorThe person a facility owner or operator names under section 302 of the Emergency Planning and Community...
• Factory mutualA type of mutual insurance company, historically focused on providing property insurance and loss prevention...
• Facultative automaticA hybrid form of reinsurance where the ceding insurer has the option to offer individual risks to the...
• Facultative obligatory treatyA reinsurance agreement where the ceding insurer has the option, but not the obligation, to cede individual...
• Facultative reinsurance FACA type of reinsurance where each individual risk or policy is offered by the ceding insurer and accepted or...
• Failure to collect contributions exclusionA fiduciary liability policy exclusion that removes coverage for loss arising from failure to collect...
• Failure to fund in accordance with ERISA exclusionA fiduciary liability policy exclusion that removes coverage for loss arising from a plan's failure to meet...
• Failure to insure exclusionA provision in a directors and officers (D&O) liability insurance policy that denies coverage for claims...
• Fair Access to Insurance Requirements Plans FAIRState-mandated insurance programs designed to provide property insurance to individuals who cannot obtain...
• Fair Chance To Compete for Jobs Act of 2019A federal law that prohibits federal agencies and federal contractors from inquiring about an applicant's...
• Fair Credit Reporting Act of 1970 FCRAA federal law that regulates the collection, dissemination, and use of consumer credit information. It grants...
• Fair Labor Standards Act of 1938 FLSAA federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards...
• Fair market valueThe price that the seller is willing to accept and the buyer is to pay on the open market and in an arm's...
• Fair rental value coverage FRVCoverage in homeowners and dwelling policies that pays a landlord the fair rental value of the part of the...
• Faithful performance coverageA type of fidelity bond that protects an employer against financial losses resulting from dishonest acts of...
• False arrestThe unlawful restraint of a person's liberty without legal justification or probable cause. This tort can...
• False pretense, trick, and deviceA type of exclusion in insurance policies that denies coverage for losses resulting from voluntarily parting...
• Families First Coronavirus Response Act FFCRAA federal law enacted in response to the COVID-19 pandemic, requiring certain employers to provide employees...
• Family and Medical Leave Act of 1993 FMLAA federal law that requires covered employers to give eligible employees up to 12 weeks of unpaid...
• Family deductibleA provision in a health insurance policy that limits the total amount of deductible expenses a family must...
• Family exclusionA provision in an insurance policy that denies coverage for claims brought by one family member against...
• Family income life insuranceA combination of whole life and decreasing term life insurance that provides a monthly income to...
• Family life insuranceA single life insurance policy covering a household: permanent insurance on the primary wage earner, term...
• Farm mutualAn insurance company owned by its policyholders that specializes in providing property and casualty coverage...
• Farm umbrella policyAn excess liability insurance policy designed specifically for farm and ranch operations, providing...
• Farmers personal liabilityLiability coverage for farmers, written on the form known as FCPL, that pays claims of bodily injury or...
• Farmowners insurance FCPLA specialized insurance policy that combines property and liability coverage for farm and ranch operations...
• FAS 113Statement of Financial Accounting Standards No. 113, issued by the Financial Accounting Standards Board...
• FAS 115Statement of Financial Accounting Standards No. 115, issued by the Financial Accounting Standards Board...
• FAS 5Statement of Financial Accounting Standards No. 5, issued by the Financial Accounting Standards Board (FASB)...
• Feasibility studyAn assessment conducted during the initial stages of a proposed project to analyze its viability from...
• Federal arbitration act FAAA federal law that governs arbitration in the United States, making arbitration agreements enforceable in...
• Federal crop insuranceA government-backed insurance program in the United States that provides financial protection to agricultural...
• Federal Emergency Management Agency1. The Federal agency under which the NFIP is administered. In March 2003, FEMA became part of the newly...
• Federal Emergency Management Agency FEMAAn agency of the United States Department of Homeland Security tasked with coordinating the response to...
• Federal Employers Liability Act of 1908 FELAA federal law that protects and compensates railroad workers who are injured on the job due to the negligence...
• Federal excise tax FETA federal tax imposed on certain goods and services, including premiums paid for insurance on U.S. risks...
• Federal Highway Administration FHWAAn agency within the United States Department of Transportation that supports state and local governments in...
• Federal Home Loan Bank FHLBA system of government-sponsored banks that provide liquidity to member financial institutions, primarily for...
• Federal Insurance Contribution Act of 1935 FICAA federal law tracing to the Social Security Act of 1935, now part of the Internal Revenue Code, that imposes...
• Federal Liability Risk Retention ActA 1986 United States federal law that allows businesses, professionals, and municipalities with similar...
• Federal Mine Safety and Health Act of 1969 FMSHAA United States federal law that consolidated and expanded safety and health standards for all types of...
• Federal Motor Carrier Safety Administration FMCSAAn agency within the United States Department of Transportation that regulates the trucking industry and bus...
• Federal Motor Carrier Safety Regulations FMCSRRules established by the Federal Motor Carrier Safety Administration governing the safety of commercial motor...
• Federal policy feeA flat charge that the policyholder must pay on each new or renewal policy to defray certain administrative...
• Federal Savings and Loan Insurance Corporation FSLICA former United States government corporation that insured deposits in savings and loan associations...
• Fee disputes exclusionA provision within a professional liability insurance policy that denies coverage for claims arising solely...
• Fee scheduleA listing of the maximum amounts a payer will allow for specific medical services, procedures, and supplies...
• Fee-for-serviceA traditional payment model in healthcare where providers are paid for each service they render, such as...
• FeesCharges levied for services rendered by professionals, such as insurance brokers, agents, or consultants, or...
• Fellow employee coverageAn extension of liability insurance that protects an employee from claims brought by a co-worker for injuries...
• Fellow employee exclusionA standard provision in liability insurance policies, particularly general liability, that denies coverage...
• Fellow employee suits coverageLiability coverage that deletes the fellow employee exclusion, so an employee sued by a co-worker over a...
• Fellow in Risk Management FRMAn advanced risk management designation introduced by RIMS, the Risk and Insurance Management Society, in...
• Fellowship of the Chartered Insurance Institute FCIIThe highest level of professional qualification awarded by the Chartered Insurance Institute (CII), a...
• Fictitious grouping law FGLLegislation in some states that prohibits insurers from offering preferential rates or coverage to groups...
• FiduciaryAn individual or entity entrusted with the responsibility to act in the best interests of another party...
• Fiduciary bondA type of surety bond required by a court or statute to guarantee the faithful performance of duties by an...
• Fiduciary liabilityThe legal responsibility of an individual or entity acting as a fiduciary to manage assets or affairs for...
• Fiduciary liability endorsementAn addition to an insurance policy, typically a directors and officers (D&O) or errors and omissions (E&O)...
• Fiduciary liability "follow-on" claimsLawsuits alleging breach of ERISA fiduciary duty that follow a related event at the plan sponsor, most...
• Field adjusterAn insurance professional who investigates and assesses claims directly at the site of a loss. This...
• Field service advice FSAA form of written guidance provided by the Office of Chief Counsel of the Internal Revenue Service (IRS) in...
• Filed formsPolicy forms, endorsements, and rates that an insurer has submitted to a state insurance department as that...
• FillEarthen fill is sometimes placed in an Special Flood Hazard Area (SFHA) to reduce flood risk to the filled...
• Financed insuranceAn insurance contract whose premium has been paid by a premium finance company that lends the money to the...
• Financial Accounting Standards Board FASBThe independent organization in the United States responsible for establishing and improving generally...
• Financial Anti-Terrorism Act of 2001 FATAA common name for Title III of the USA PATRIOT Act, which introduced extensive measures to combat the...
• Financial Assistance/Subsidy ArrangementThe arrangement between an insurance company and FEMA to initiate the company's participation in the Write...
• Financial capacityThe ability of an insurer or reinsurer to meet its financial obligations, including claims payments and...
• Financial consolidationThe process of combining the financial statements of separate entities within a group into a single, unified...
• Financial disclosure claimsAllegations made against a company or its directors and officers for misrepresentations or omissions in...
• Financial guarantee insuranceA type of insurance that protects a beneficiary against financial loss resulting from a borrower's or...
• Financial institution bondA specialized type of fidelity bond designed to protect financial institutions from losses due to dishonest...
• Financial Institutions Reform, Recovery, and Enforcement Act FIRREAA United States federal law enacted in 1989 in response to the savings and loan crisis. FIRREA restructured...
• Financial interest clause FINCA provision in a multinational master insurance program that covers the financial interest of the group's...
• Financial interest coverageInsurance protection for a party's monetary stake in an asset or venture, even if they are not the direct...
• Financial modelingThe process of creating a mathematical representation of a company's or project's financial performance...
• Financial quota shareA type of proportional reinsurance where the reinsurer assumes a fixed percentage of all losses and premiums...
• Financial reinsuranceA form of reinsurance where the primary motivation is capital management or balance sheet enhancement rather...
• Financial responsibility FRThe legal obligation of individuals or organizations to demonstrate the ability to pay for potential damages...
• Financial responsibility law FRLA state statute requiring drivers to demonstrate the ability to pay for damages or injuries they cause in an...
• Financial restatementThe revision of previously issued financial statements to correct errors that were material to the financial...
• Financial restatement exclusionA provision in a directors and officers (D&O) liability insurance policy that denies coverage for claims...
• Financial risk managementThe systematic process of identifying, assessing, and mitigating financial exposures that could negatively...
• Financial Stability Board FSBAn international body that monitors and makes recommendations about the global financial system. It was...
• Financial statementA set of formal records detailing an organization's economic performance and condition, used by insurers to...
• Finished (habitable) areaAn enclosed area having more than 20 linear feet of finished interior walls (paneling, etc.) or used for any...
• Finite risk insuranceA multi-year insurance or reinsurance contract that transfers only limited underwriting and timing risk to...
• Fire brigadeA team of individuals, often employees within an organization, trained and equipped to respond to fires and...
• Fire department service charge coverageAn additional coverage in property insurance policies that pays for charges incurred when a fire department...
• Fire legal liability coverageProtection for a tenant against liability for damage to a rented premises caused by fire, explosion, or...
• Fire resistive construction (ISO)A construction classification used by the Insurance Services Office (ISO) for buildings designed to withstand...
• Fire wallA continuous, fire-rated barrier that extends from the foundation through the roof, designed to prevent the...
• FirewallA network security system that monitors and controls incoming and outgoing network traffic based on...
• FIRMetteA scaled-down, site-specific Flood Insurance Rate Map (FIRM) produced by the Federal Emergency Management...
• First advised clauseA clause in some reinsurance contracts providing that claims arising from a common cause are covered only if...
• "First bite"A legal principle in some jurisdictions regarding animal liability, particularly for dogs, where the owner is...
• First class mail coverageInland marine cover for valuable papers and securities that a financial organization sends by first class...
• First dollar coverageAn insurance policy feature where the insurer pays for covered losses from the very first dollar of expense...
• First dollar defense coverageA provision in an insurance policy where the insurer pays for defense costs from the very first dollar...
• First dollar defense, umbrellaA feature in an umbrella liability policy where the insurer covers defense costs from the initial expense...
• First named insuredThe individual or entity whose name appears first on the declarations page of an insurance policy when...
• First surplus reinsurance treatyA type of proportional reinsurance treaty where the ceding insurer retains a fixed amount of risk (its...
• First-party insuranceInsurance that directly compensates the policyholder for their own losses or damages, rather than for...
• Fixed amount optionA settlement option for life insurance policy proceeds or annuity payments where the beneficiary or annuitant...
• Fixed benefitA predetermined amount of money paid to a policyholder or beneficiary upon the occurrence of a specific...
• Fixed period annuityAn annuity that provides guaranteed payments for a specific, predetermined number of years. The payment...
• Fixed period optionA settlement option for life insurance proceeds or annuity payments where the beneficiary or annuitant...
• Fixed-cost insuranceAn insurance arrangement where the premium remains constant throughout the policy term, regardless of claims...
• FlatA type of policy cancellation where the contract is voided from its inception date, as if it had never been...
• Flat cancellationThe termination of an insurance policy as of its effective date, with no premium earned by the insurer. This...
• Flat commissionA commission structure where an insurance agent or broker receives a fixed percentage of the premium for each...
• Flat dividendA dividend paid by a mutual insurance company that is a fixed percentage of the premium or a set dollar...
• Flat rateA uniform premium charge applied to all insureds within a specific group or for a particular type of...
• FleetA collection of multiple vehicles owned or leased by a single entity, such as a business or government...
• Fleet automaticA provision in a commercial auto insurance policy that automatically adds newly acquired vehicles to the...
• Fleet policyA single insurance contract that covers multiple vehicles owned or leased by a business or other entity. This...
• Fleet policy, aircraftAn insurance contract that covers multiple aircraft under a single policy, rather than insuring each aircraft...
• Floater policyAn insurance policy that covers movable property, regardless of its location, providing broader protection...
• Flood1. • A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry...
• Flood coverageProtection against financial losses caused by water damage from a flood, which is defined as an overflow of...
• Flood exclusionA standard provision in most property insurance policies, including homeowners and commercial forms, that...
• Flood Hazard Boundary MapOfficial map of a community issued by FEMA, where the boundaries of the flood, mudflow and related erosion...
• Flood hazards of special concernThe mapping and regulatory standards of the National Flood Insurance Program (NFIP) are general standards and...
• Flood in progress1. A flood that is in progress on the earlier of either: • The date the community in which the insured...
• Flood Insurance Claims OfficeAn NFIP claims processing office set up in a catastrophe area when a sufficient number of flood claims result...
• Flood Insurance Rate Map1. Official map of a community on which FEMA has delineated the Special Flood Hazard Areas (SFHAs), the Base...
• Flood insurance rate map FIRMAn official map produced by the Federal Emergency Management Agency (FEMA) that delineates flood hazard areas...
• Flood Insurance StudyA compilation and presentation of flood risk data for specific watercourses, lakes, and coastal flood hazard...
• Flood mapA Flood Insurance Rate Map (FIRM), Flood Boundary and Floodway Map (FBFM), and Flood Hazard Boundary Map...
• Flood Response OfficeThe FRO provides a local presence in the affected area and supports the WYO companies, the NFIP Servicing...
• Flood zonesFlood hazard areas identified on the Flood Insurance Rate Map are identified as a Special Flood Hazard Area...
• FloodplainAny land area susceptible to being inundated by floodwaters from any source.
• Floodplain management1. The operation of an overall program of corrective and preventive measures for reducing flood damage...
• Floodplain management ordinancesOnce FEMA provides a community with the flood hazard information upon which floodplain management regulations...
• Floodproofing1. Any combination of structural and nonstructural additions, changes or adjustments to structures, which...
• Floodproofing CertificateDocumentation of certification by a registered professional engineer or architect that the design and methods...
• Flood-related erosionThe collapse or subsidence of land along the shore of a lake or other body of water as a result of...
• Flood-resistant materialFlood-resistant material includes any building product capable of withstanding direct and prolonged contact...
• FloodwayA "Regulatory Floodway" means the channel of a river or other watercourse and the adjacent land areas that...
• FloorA contractual minimum below which a variable amount cannot fall, such as the guaranteed minimum credited rate...
• Fluvial floodingThe inundation of land that is normally dry, caused by the overflow of rivers, streams, or other inland...
• Follow formA characteristic of an insurance policy, typically an excess or umbrella policy, where its terms, conditions...
• Follow form professional liability endorsementAn addition to an insurance policy that extends the terms, conditions, and exclusions of an underlying...
• Following the fortunesA clause in a reinsurance treaty requiring the reinsurer to be bound by the underwriting decisions and claims...
• Food and Drug Administration FDAA federal agency responsible for protecting public health by regulating and supervising food safety, tobacco...
• Force majeureA contract clause that excuses a party from performance of its contractual duties when an unforeseen and...
• Force majeure insuranceCoverage for financial losses resulting from events defined under a force majeure clause, which are...
• Foreign Account Tax Compliance Act FATCAA United States federal law enacted in 2010 to combat tax evasion by U.S. persons holding investments in...
• Foreign commerceCommercial transactions and trade activities that occur between entities located in different countries. This...
• Foreign Corrupt Practices Act of 1977 FCPAA United States federal law that prohibits U.S. companies and individuals from bribing foreign government...
• Foreign currency controlsGovernmental restrictions on the conversion of a country's currency into other currencies or on the transfer...
• Foreign insurerAn insurer incorporated in a different state from the one where it writes business, in contrast to a domestic...
• Foreign liability coverageInsurance protection for a company's legal liability arising from its operations, products, or employees in...
• Foreign title equivalent coverage provisionA clause in the definition of insured persons in a directors and officers policy that treats people holding a...
• Foreign voluntary workers compensation coverage FVWCAn insurance policy designed to provide benefits to employees working abroad who are not covered by standard...
• Foreign-cubed litigationLegal disputes involving foreign plaintiffs suing foreign defendants in a U.S. court for actions that...
• Forgery or alteration coverageAn insurance provision that protects against financial losses resulting from forged or altered checks...
• "For-hire" motor carrierAn individual or company that transports goods or passengers for compensation, operating under specific...
• FormA standardized document or template used by insurers to define the terms, conditions, exclusions, and...
• FormulariesA list of prescription drugs covered by a health insurance plan, categorized by their cost-sharing tier...
• Fortuitous eventAn unforeseen and unintended occurrence that causes loss or damage, forming the basis for a valid insurance...
• ForumThe specific court or jurisdiction where a legal dispute or claim is heard and resolved. In insurance, the...
• Forum selection clauseA contractual provision that designates a specific court, state, or country as the exclusive location for...
• Forum shoppingThe practice of deliberately choosing a court or jurisdiction that is most likely to provide a favorable...
• ForwardA customized, private contract between two parties to buy or sell an asset at a specified price on a future...
• Forward contractA customized, private agreement between two counterparties to purchase or deliver an asset at a predetermined...
• FoundationWithout a proper foundation, an elevated building can suffer damage from a flood due to erosion, scour, or...
• Foundation wallsMasonry walls, poured concrete walls or precast concrete walls, regardless of height, that extend above grade...
• "Four-corners" testA legal principle applied by courts to determine an insurer's duty to defend a policyholder, based solely on...
• Fractional premiumA portion of the total annual insurance premium paid in installments, such as monthly, quarterly, or...
• Frame construction (ISO)A classification of building construction, as defined by the Insurance Services Office (ISO), where the...
• Franchise deductibleA type of deductible where the insurer pays the entire loss if it exceeds a specified threshold, but pays...
• Franchise insuranceA group insurance arrangement where individual policies are issued to members of a common group, such as...
• Fraternal benefit societyA non-profit organization that provides insurance coverage and other benefits to its members, who share a...
• FraudAn intentional misrepresentation or concealment of a material fact made to deceive another party and induce...
• Fraud Claim Law Associate FCLAA professional designation awarded to individuals who have completed a specialized curriculum focused on the...
• Fraud Claim Law Specialist FCLSA professional designation awarded to individuals who have demonstrated expertise in identifying...
• Free alongside FASAn Incoterm specifying that a seller fulfills their delivery obligation when goods are placed alongside the...
• Free of capture and seizure warranty FC&SA marine insurance warranty that excludes loss from capture, seizure, arrest, restraint, or detainment, and...
• Free of particular average- American conditions FPAACA marine cargo clause of American origin under which the insurer pays a partial loss only when the damage was...
• Free of particular average- English conditions FPAECA marine cargo clause of English origin under which the insurer pays partial loss to cargo once the vessel...
• Free of particular average FPAA marine insurance clause that limits the insurer's liability for partial losses to specific circumstances...
• Freeboard1. An additional amount of height above the Base Flood Elevation used as a factor of safety (e.g., 2 feet...
• Freight brokerAn intermediary who connects shippers with carriers to arrange for the transportation of goods. Freight...
• Freight forwarderA company that arranges the shipment of goods on behalf of shippers, acting as an intermediary between the...
• FrequencyThe number of claims or losses that occur within a specified period, such as a policy year. It is a key...
• Friable asbestosAsbestos-containing material that, when dry, can be crumbled, pulverized, or reduced to powder by hand...
• Friendly fireA fire burning where it is meant to burn, such as in a fireplace, furnace, stove, or incinerator, and staying...
• Front companyAn insurer licensed in the relevant jurisdiction that writes a policy in its own name and then passes most or...
• Front payMonetary damages awarded in employment discrimination cases to compensate a plaintiff for lost future...
• FrontingAn arrangement where a licensed insurer issues a policy for a risk, but then cedes all or a substantial...
• Fuel systemsSee Utilities.
• Fujita scaleA scale used to rate the intensity of tornadoes based on the damage they cause to structures and vegetation...
• Full preliminary term reserve valuationA method of calculating life insurance policy reserves that allows for a higher allocation of premiums to...
• Full prior acts coverageA feature of a claims-made liability policy under which there is no retroactive date, so the policy responds...
• Full-risk premium rateA rate charged to a group of policies that results in aggregate premiums sufficient to pay anticipated losses...
• Full-timers coverageInsurance coverage specifically designed for individuals who live in their recreational vehicles (RVs) as...
• Fully insured statusA Social Security status earned by accumulating enough work credits, generally 40 (about ten years of work)...
• Fully paid policyA life insurance policy for which all required premiums have been paid, but the policy remains in force and...
• Functional capacity evaluation FCEA systematic assessment of an individual's physical abilities and limitations in relation to work demands. It...
• Functional job descriptionA detailed outline of the physical and cognitive demands of a specific job, focusing on the actions and tasks...
• Functional replacement costA method of property valuation in insurance that pays for the cost to replace damaged property with less...
• Functional replacement cost provision or endorsementA clause or addition to a property insurance policy that modifies the standard replacement cost settlement to...
• Functionally dependent useA use which cannot perform its intended purpose unless it is located or carried out in close proximity to...
• Fundamental riskA peril that affects a large number of people or a broad segment of society simultaneously, rather than an...
• FundedDescribing a benefit plan, such as a pension or trust, for which assets have been set aside in advance to...
• Funded coversA reinsurance contract, closely related to finite risk cover, under which the cedent deliberately pays more...
• Funded pension planA retirement scheme where assets are accumulated and held separately from the employer's general assets to...
• Funded retentionA risk financing strategy where an organization sets aside specific financial resources to cover potential...
• Funded self-insuranceA risk management approach where an organization formally sets aside financial assets in a dedicated fund to...
• Funds controlA financial management practice involving the oversight and regulation of monetary disbursements, often in...
• Funds withheldA reinsurance accounting practice where the ceding insurer retains a portion of the premiums due to the...
• Furriers block policyA specialized property insurance policy designed for businesses that store, clean, repair, or sell furs. It...
• Furriers customers insuranceA specific type of inland marine insurance that protects customers' furs and garments left with a furrier for...
• FutureA standardized legal contract to buy or sell something at a predetermined price at a specified time in the...
• Futures contractA standardized, legally binding agreement to buy or sell a specific commodity, financial instrument, or other...

219 of 3,682 terms in Insurance and risk management terminology (MLC-0106). Request the full dataset.