FAIR Plan See Fair Access to Insurance Requirements.
FCAS See Fellow of the Casualty Actuarial
FDIC See Federal Deposit Insurance Corporation.
FEMA Federal Emergency Management Agency.
FLMI Fellow of the Life Management Institute.
See Life Office Management Association.
face amount The principal amount of
insurance provided at the time of issue by an insurance policy. The
term derives from the fact that the amount of insurance is usually indicated
on the first page or "face" of the policy.
face sheet A form attached to the policy
identifying the insured, the subject matter of the insurance, the policy
limits, etc. In casualty insurance, the face sheet is very often a copy
of the declarations.
facility of payment Many weekly
premium policies contain a provision that the company may pay the sum
due on the policy to a relative, by blood or marriage, or to any person
appearing to be entitled to the payment by reason of having incurred
expenses on behalf of the insured or expenses for his or her burial.
Fair Access to Insurance Requirements
(FAIR) plan A state-run property insurance plan that makes basic property
insurance available to those in high risk areas who cannot obtain insurance
through normal markets.
fair credit reporting act
An act requiring that an applicant be informed in advance if an inspection/consumer
report may be ordered. If insurance is declined due to information contained
in that report, the applicant has the right to ask the inspection company
about the information it obtained.
federal deposit insurance corporation
(FDIC) A federal government agency that insures bank deposits up to
a stated maximum.
federal estate tax An excise
tax currently levied upon the transfer of property or interests in property
at death. Life insurance proceeds are taxable if payable to the decedent's
estate, or if payable to named beneficiaries and the insured possessed
at death any incidents of ownership in the policy or policies. The value
of life insurance policies owned by the decedent on the lives of others
is also taxable.
fellow of the Casualty Actuarial Society
(FCAS) Awarded by the completion of a series of examinations and other
fidelity bond A bond which will
reimburse an employer for loss up to the amount of the bond, sustained
by the employer named in the bond (the insured), due to any dishonest
act of a covered employee.
fiduciary Holding in trust. A person
upon whom a trust has been handed down. When an agent collects an insurance
premium, he/she holds the money in a fiduciary capacity. The money does
not belong to them, and they should remit the premium as soon as possible.
file-and-use law A law for regulating
insurance rates under which insurance companies are required only to
file the rates with state insurance department before putting them into
financial responsibility law
A law requiring motorists to furnish proof of their ability to pay damages
up to a stipulated amount following a loss.
fire A combustion accompanied by a flame
or glow that escapes its normal confines to cause damage.
flat cancellation Cancellation
of a policy at or before it becomes effective. All premium is refunded
to the insured.
fleet policy A policy which provides
insurance for a number of vehicles owned by one insured.
floater policy A policy that covers
property that can be moved from one location to another.
foreign insurer An insurance company
chartered by one state but licensed to do business in another state(s).
forgery Imitating the signature
of some other person with fraudulent intent.
form The insurance policy itself
, the application, and any endorsements or riders which may be attached are
each considered a "form" by the Departments of Insurance.
401(K)plan A qualified profit-sharing
or thrift plan that allows eligible employees the option of putting
money into the plan or receiving the funds as cash. This tax-deferred
savings plan, authorized by Section 401(k) of the Internal Revenue Code,
can be established with or without employer contributions.
A society or order that is organized solely for the benefit of its members
and their beneficiaries, not for profit. This organization offers insurance
only to its members.
fraud A false representation of a matter
of fact (whether by words or conduct, by false or misleading allegations,
or by concealment of that which should have been disclosed) which deceives
and is intended to deceive another to his/her legal injury.
free look A period of time during which
a policy owner may examine a newly issued policy and, if not satisfied,
surrender it in exchange for a full refund of premium.