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Face Amount
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As used in life insurance, the amount stated on the first page of the policy that will be paid at maturity, upon death of the insured expiration of the endowment period. Additional benefits may be provided by riders or dividends. Also known as face value.
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Face Value
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As used in life insurance, the amount stated on the first page of the policy that will be paid at maturity, upon death of the insured or expiration of the endowment period. Additional benefits may be provided by riders or dividends. Also known as face amount.
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Factory Mutuals
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A group of direct-writing mutual insurance companies, independently owned and operated, which underwrite highly protected risks of substantial value on a reciprocal reinsurance basis. The central organization in New England maintains extensive fire laboratory facilities and provides its members with engineering services.
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Facultative Reinsurance
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Reinsurance effected item by item and accepted or declined by the reinsuring company after scrutiny, as opposed to reinsurance effected by treaty. The work facultative connotes that both the primary insurer and the reinsurer have the faculty or option of accepting or rejecting the individual submission, as distinguished from the pre-set obligation to cede and accept already agreed upon by the parties in treaty reinsurance.
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Fair Plan
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A program to provide "fair" access to insurance requirements" for property owners who experience difficulty in buying insurance on property located in blighted or deteriorating urban areas. Basically the plan assures a property owner of physical inspection of property, and a promise to provide fire and allied lines Insurance if the property is adequately maintained and if recommended improvements necessary to make the property insurable have been made. Many of these plans have been extended to cover statewide in those states adopting them.
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Family Deductible
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A health insurance policy deductible that was designed to address the expenses for services for the entire family unit rather than aplication to each person.
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Financial Guaranty
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A guaranty that a sum of money will be paid. A form of bond.
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Fire
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Combustion manifested in light, flame and heat for useful purposes (known as friendly fire), or for destructive purposes (called hostile fire). Insurance covers a loss only from the latter.
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Fire Clause
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A condition in a lease which provides that in case fire should damage the property to some agreed extent, certain agreed modifications in the lease automatically take place.
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Fire Department Service Clause
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Sometimes when property is located outside the boundaries of a city or town, the fire department will agree to come to a fire, but a charge is made for it. This clause extends the policy to pay such charges in the event of loss.
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Fire Insurance
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1)Covers losses caused by fire, lightning and removal of insured property from the premises to avoid further loss. All resultant damage such as that done by water and smoke is also covered. Usually supplemented by extended coverage. Currently, this insurance is referred to a property insurance.
2)A type or line of insurance, as opposed to marine, casualty or fidelity bonding. The term fire insurance is now referred to as property insurance when denoting a line of insurance.
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Floater
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A policy which covers property at many locations, even worldwide and in the course of transit, i.e., the protection "floats around" with the objects insured.
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Flood
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Overflow of water from its natural boundaries. More specifically defined by the National Flood Act of 1968 as "a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of inland or tidal waters, or the unusual and rapid accumulation or runoff of surface waters from any source".
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FOB-Free On Board
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When goods are shipped FOB, the shipper is responsible only until the goods have been placed on board the vessel, freight car, truck, or other means of transport. After that the risk belongs to the consignee.
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Forgery
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False or fraudulent making or altering of a written instrument. Also, the illegal signing of another's name to a document such as a check.
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Form
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A document providing the specifics of the insurance issued, either separate unto itself or attached to other descriptive language.
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Fortuitous Cause
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An accidental and unexpected cause of loss. A happening by chance.
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Foundation Exclusion Clause
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A clause in a fire policy which states that it does not insure foundations; hence, their value may not be used to determine the proper amount of insurance under a coinsurance clause.
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Foundation Wall
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A masonry wall below the surface which supports a building.
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Frame Building
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A type of construction in which the outer walls are made of lumber.
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Fraud
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Dishonesty.
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Free Trade Zone
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A special section of the New York State Insurance Law that exempts from rate regulation certain risks which develop property-liability policy premiums in excess of $100,000 annually, as well as certain other classes of unusual or exotic risks.
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Free-Look Period
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The time period allowed a new insured to look over the terms and conditions of the final policy after delivery, during which the insured may cancel the policy with a full premium refund. The free-look period is often 10 days after delivery of the policy for life and health, or up to 30 days on property and liability.
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Friendly Fire
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A visible flame or glow started voluntarily, under control, and in its intended place.
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Full Coverage
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The use of this terminology usually refers to a coverage that has been written without a deductible. The entire amount of loss is covered, up to the state policy limit.
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Services