Insurance Terms - F
FACE - the first page of a life insurance policy
Factor Analysis of Information Risk Institute (FAIR Institute) - (non-profit professional organization dedicated to advancing the discipline of measuring and managing cyber and operational risk - promotes risk management best practices through risk analysis modeling, training, and conferences)
Factory Insurance Association (FIA) - (association of stock property insurance companies, formed to provide engineering services for member companies - member companies generally insure highly protected risks (exposures or situations where action has been taken to reduce the frequency and severity of loss, such as adding sprinkler systems in public buildings))
factory mutual (FM) -
facultative reinsurance (FAC) - (a form of reinsurance where each exposure the ceding company wishes to reinsure is offered to the reinsurer and is contained in a single transaction - the reinsurer is not obligated to accept every or any submission and agreement or acceptance to reinsure is made on an indivdual exposure basis)
Fair Access to Insurance Requirements Plan (FAIR) - (federal program which will provide insurance for business owners or homeowners in hard-to-insure locations - insurance can be obtained from insurance companies participating in the program)
Fair and Accurate Credit Transactions Act of 2003 (FACTA) - (legislation designed to provide consumers with protection of credit identities and a means of recovering from identity theft)
Fair Credit Reporting Act of 1970 (FCRA) - (federal legislation aiming to promote the fairness and accuracy of information contained in consumer reports, such as credit reports, with legal standards for the collection, use, and dissemination of consumer credit information - in the insurance area gives an insurance applicant the right to contact a reporting organization doing a credit check and be advised of information contained in the applicant's file showing the reason for rejection of insurance)
Fair Labor Standards Act of 1938 (FLSA) - (federal legislation that established a national, hourly minimum wage and promulgated eligibility rules for overtime pay)
fair market value (FMV) - (method of valuing an asset - considered to be the amount that could be received upon the sale of an asset - assumed to be a sale between willing buyers and sellers in the open market)
fair rental value coverage (FRV) - (insurance coverage provided as part of additional living expense (ALE) under a homeowners policy - normally involves rental of part of a home to a tenant, and provides reimbursement to the homeowner for lost rent, if the rented area becomes uninbabitable)
Family Automobile Policy (FAP) - (insurance coverage for liability, injuries, or damages related to the use of a family automobile - replaced by the Personal Automobile Policy (PAP), essentially covering non-business automobile use)
Family Medical Leave Act (FMLA) - (legislation that requires an employer who has more than 50 employees to provide employees with leave for medical reasons without loss of employment)
farm and ranch forms (FR) - (policies which provide homeowners, commercial property, and commercial liability coverage to farms or ranches - typically provided for family and individually operated farms, not large commercial or corporate farming operations)
farmers comprehensive personal liability (FCPL) -
Federal Aviation Administration (FAA) - (agency which oversees the aviation industry, investigates accidents, and regulates airline safety)
Federal Aviation Regulations (FAR) -
Federal Coal Mine Safety and Health Act of 1969 (FCMS&HA) - (legislation passed in 1969 that provides no-fault coverage for employees who are injured or become sick while working in coal mines located in the United States)
Federal Communications Commission (FCC) - (federal agency responsible for oversight and regulation of electronic communications and transmission in the U.S. - provides licensing requirements for radio and TV)
Federal Corrupt Practices Act of 1910 (FCPA) - (primary law regulating campaign finance in federal elections until the Federal Election Campaign Act passed in 1971)
Federal Crop Insurance Corporation (FCIC) -
Federal Deposit Insurance Corporation (FDIC) - (federal agency managing the Deposit Insurance Fund (DIF) insuring depositor accounts in banks and thrift institutions up to $250,000 in principal and interest)
Federal Emergency Management Agency (FEMA) - (federal agency within the Department of Homeland Security (DHS) that coordinates the responses of federal, state, and local agencies to disasters and provides disaster relief during emergencies, such as floods, fires, and earthquakes)
Federal Employee's Compensation Act of 1916 (FECA) -
Federal Employees Group Life Insurance (FEGLI) - (plan administered through a primary private life insurer and reinsured through other private life insurers, providing life insurance/paying death benefits for federal employees)
Federal Employers Liability Act (FELA) - (federal law passed in 1908, comparable to state workers compensation statutes, setting out liability of railroads for work-related injuries or death of their employees - railroad employees are not covered by state workers compensation laws)
federal excise tax (FET) - (a tax imposed on premium payments to offshore insurers)
Federal Highway Administration (FHWA) - (federal agency which coordinates highway transportation programs in cooperation with states and other partners to enhance safety and economic vitality by providing financial assistance for road and bridge construction)
Federal Housing Administration (FHA) - (federally-sponsored agency that insures lenders against loss on residential mortgages)
Federal Insurance Administration (FIA) -
Federal Insurance Contributions Act (FICA) - (federal law which established a payroll tax to assist in the funding of Social Security benefits - legislation that consists of both Social Security and Medicare taxes charged to finance the Old Age, Survivors, Disability, and Health Insurance (OASDHI) plan - both employer and employee share in the cost, making contributions on an equal basis)
Federal Insurance and Mitigation Administration (FIMA) - (federal agency within the Federal Emergency Management Agency (FEMA) which administers federal insurance programs:
Federal Flood Insurance Program;
Federal Crime Insurance Program; and
the Fair Access to Insurance Requirement (FAIR) Plan)Federal Motor Carrier Safety Administration (FMCSA) - (agency within the Department of Transportation (DOT), created on January 1, 2000, whose primary mission is to prevent commercial motor vehicle-related fatalities and injuries)
Federal Motor Carrier Safety Regulations (FMCSR) - (a compendium of safety regulations of the U.S. Department of Transportation (DOT), Federal Highway Administration, and Federal Motor Carrier Safety Administration (FMCSA) that apply to motor carriers - relating to such areas as driver qualifications, hours-of-service, and vehicle maintenance)
Federal National Mortgage Association (FANNIE MAE) (FNMA) - (federally-chartered corporation which provides home mortgage funding in the U.S. by purchasing qualifying mortgages from lenders and selling securities backed by mortgage loans to investors)
Federal Office of the Superintendent of Financial Institutions (FOSFI) -
Federal Savings and Loan Insurance Corporation (FSLIC) - (former federal agency which insured customer deposits - abolished in 1989 by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and replaced by the Federal Deposit Insurance Corporation (FDIC))
Federal Trade Commission (FTC) - (federal agency created in 1914 to foster free and fair business competition, prevent monopolies and activities in restraint of trade - normally has no authority over insurance matters, to the extent states regulate insurance, however, it has the authority to regulate credit reporting and insurance company activities which fall within the finance/credit reporting area)
Federal Unemployment Tax Act (FUTA) - (legislation under which federal and state governments require employers to contribute to a fund that pays unemployment insurance benefits - the act provides for cooperation between state and federal governments in the establishment and administration of unemployment insurance)
Federation of European Risk Management Associations (FERMA) -
Federation of Insurance and Corporate Counsel (FICC) -
Fellow of the Academy of Life Underwriting (FALU) -
Fellow, Casualty Actuarial Society (FCAS) - (professional designation earned by passing 10 national examinations covering insurance and actuarial science topics - administered by the Casualty Actuarial Society)
Fellow of the Chartered Insurance Institute (FCII) - (designation gained by the completion of examinations in insurance practices and other requisites)
Fellow of the Institute of Actuaries (FIA) -
Fellow of the Insurance Institute of Canada (FIIC) -
Fellow, Life Management Institute (FLMI) - (professional management designation earned by passing 10 national examinations covering life and health insurance subjects - administered by the Life Office Management Association)
Fellow in Risk Management (FRM) - (professional designation awarded to individuals who have completed courses in risk management and various business subject areas, including law, accounting, finance, and information systems - administered by the Risk and Insurance Management Society, Inc. (RIMS))
Fellow, Society of Actuaries (FSA) - (designation earned by passing 10 national examinations covering subjects such as actuarial science, insurance, and employee benefits - administered by the Society of Actuaries)
Fellowship of the Chartered Insurance Institute (British) (FCII) - (a professional designation, established in the United Kingdom, awarded to the holders of the Associateship of the Chartered Insurance Institute (ACII) who have accomplished additional achievements)
field service advice (FSA) - (information provided by the Internal Revenue Service (IRS) to its field agents involving guidance in the conduct of tax audits)
Financial Accounting Standard (FAS) - (formal statement of U.S. generally accepted accounting principles (GAAP) issued by the Financial Accounting Standards Board (FASB) on a specific topic and providing accounting, reporting, and disclosure requirements - term has been replaced by Accounting Standards Codification (ASC) )
Financial Accounting Standards Board (FASB) - (independent, nongovernmental body with the authority to promulgate U.S. generally accepted accounting principles (GAAP) and reporting practices)
Financial Anti-Terrorism Act of 2001 (FATA) - (full name - International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001) (abbreviated name for a section (Title III) of the USA PATRIOT (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism) Act of 2001 - act imposed new recordkeeping and government reporting requirements on banks, certain other financial institutions, and non-financial businesses for specified financial transactions and customer financial records)
Financial Industry Regulatory Authority (FINRA) - (private corporation which serves as an independent regulator of securities firms doing business in the United States - oversees brokerage firms, branch offices, and registered securities representatives)
Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) - (federal legislation of 1989 providing government funds to insolvent savings and loan associations, and mandating changes in the examination and supervison of savings and loans - abolished the defunct Federal Savings and Loan Insurance Corporation (FSLIC) )
financial strength rating (FSR) -
financial transformation (FT) - (term used to describe broad changes occuring in the insurance and financial markets since the repeal of the Glass-Steagall Act, when restrictions on banking service offerings were lifted or relaxed to allow entry into securities markets - also describes the new interface developing between insurance and capital market products)
fire and casualty (F&C) - (term for a general class of insurance coverage)
Fire, Casualty, and Surety Bulletins (FC&S Bulletins) - (bulletins published by the National Underwriter Company, explaining coverages, forms, underwriting, and rating procedures for the various property, casualty, and surety lines of insurance)
Fire Office Committee forms (FOC) -
Fire Prevention and Engineering Bureau (FPEB) -
fire resistive (FR) - (type of construction involving exterior walls, floors, and roof of masonry or fire-resistive material with a fire-resistance rating of at least 2 hours)
fire, theft and combined additional coverage (FTCAC) -
first in, first out (FIFO) - (in accounting, method of inventory valuation that assumes merchandise or components are sold in the order of receipt or use)
Flexible Premium Deferred Annuity (FPDA) - (contract sold by an insurance company under which the premium payment frequency (monthly, quarterly, semiannually, yearly) may vary and the amount of each premium payment may vary - the contract pays a monthly (or quarterly, semiannual or annual) income benefit for the life of a person or for a specified term or period of time)
flexible spending account (FSA) - (in the healthcare area, fund established by an employer into which employees contribute to pay for insurance premiums and uninsured medical costs - employees can use the fund to get reimbursed for medical bills the employees have incurred)
Flood Disaster Protection Act of 1973 (FDPA) -
flood hazard boundary map (FHBM) -
Flood Insurance Rate Map (FIRM) - (the official flood insurance map of a community on which the Federal Emergency Management Agency (FEMA) has indicated both the special flood hazard areas and the risk premium zones for the designated community)
Florida Association of Insurance Agents (FAIA) -
Food and Drug Administration (FDA) - (federal agency with oversight of food and drug safety - responsible for approving use and sale of medical devices)
foreign direct investment (FDI) -
form - (Attachment to an insurance policy, containing standardized language relating to specific circumstances or conditions, to complete policy coverage.)
Fraternal Insurance Counselor (FIC) -
Fraud Claim Law Associate (FCLA) - (claims law specialist designation offered by the American Educational Institute (AEI) - requires successful completion of both AEI legal principles and fraud self-study programs)
Fraud Claim Law Specialist (FCLS) - (claims law specialist designation offered by the American Educational Institute (AEI) - requires successful completion of the AEI fraud self-study program)
free along side/free alongside ship (FAS) - (term used in ocean marine cargo insurance meaning that an exporter of goods delivers the goods to the shipping point - responsibility for damage or destruction during shipment become the responsibility of the buyer once the goods leave the point of origin - free along side means literally, when merchandise or goods are brought alongside the vessel - loaded onto a barge for loading or placed on a dock for loading)
Free-of-Capture-and-Seizure Clause (FC&S) - (exclusion of coverage in ocean marine insurance if damage or destruction of property results from war, capture, or seizure - losses excluded usually include those due to nuclear weapons, mines, torpedoes, war (including civil war), piracy, and confiscation or nationalization of property)
free of particular average (FPA) - (marine insurance contract clause that limits an insurance company's liability - in essence, this feature is the equivalent of an insurance deductible - the insurance company only pays for losses above a fixed dollar amount or above a certain percentage)
free of particular average (American conditions) (FPAAC) - (an ocean marine policy provision that eliminates coverage for partial loss to cargo unless caused by stranding, sinking, fire, or collision)
free of particular average (English conditions) (FPAEC) - (an ocean marine policy provision that eliminates coverage for partial loss to cargo except in the event of stranding, sinking, fire, or collision (regardless of whether those perils were the proximate cause of the loss) )
free on board (FOB) - (term meaning that an exporter of goods that are damaged or destroyed during international shipment relinquishes responsibility for damage or destruction once the goods reach the point of destination - can be more specifically qualified to state terms to indicate a point of departure or destination)
free on board - point of departure (FOB) - (term used in marine insurance to determine or indicate when title to goods, and therefore responsibility for damages, passes from the seller to the buyer - point of departure means the buyer takes title at the point of departure (delivery to a ship) and is liable for damages or responsible for obtaining insurance coverage)
free on board - point of destination (FOB) - (term used in marine insurance to determine or indicate when title to goods, and therefore responsibility for damages, passes from the seller to the buyer - point of destination means the buyer does not take title until the goods reach their destination (port of delivery or other destination point) and the seller remains liable for damages or responsible for obtaining insurance coverage during shipment)
free trade zone (FTZ) - (term used in the area of international trade to refer to a geographical area in which commerce can be conducted without tariffs being applied - concept has been adopted in the insurance field to refer to a reinsurance facility for buying and selling of insurance coverages without a premium tax being applied)
full interest admitted (FIA) -
full value declared (FVD) -
functional capacity evaluation (FCE) - (a series of tests conducted by a physical or occupational therapist to gain a better quantification of an individual's ability to perform physically in the work environment - evaluation commonly used in return-to-work programs)