Definition and meaning of FIXED ANNUITY :

FIXED ANNUITY: An annuity that guarantees a specific rate of return. In the case of a deferred annuity, a minimum rate of interest is guaranteed during the savings phase. During the payment phase, a fixed amount of income, paid on a regular schedule, is guaranteed.

(Source: Insurance Information Institute )

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Definition and meaning of FINANCIAL GUARANTEE INSURANCE :

FINANCIAL GUARANTEE INSURANCE: Covers losses from specific financial transactions and guarantees that investors in debt instruments, such as municipal bonds, receive timely payment of principal and interest if there is a default. Raises the credit rating of debt to which the guarantee is attached. Investment bankers who sell asset-backed securities, securities backed by loan portfolios, use this insurance to enhance marketability. (See Municipal bond insurance)

(Source: Insurance Information Institute )

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Definition and meaning of FILE-AND-USE STATES :

FILE-AND-USE STATES: States where insurers must file rate changes with their regulators, but donÕt have to wait for approval to put them into effect.

(Source: Insurance Information Institute )

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Definition and meaning of FEDERAL RESERVE BOARD :

FEDERAL RESERVE BOARD: Seven member board that supervises the banking system by issuing regulations controlling bank holding companies and federal laws over the banking industry. It also controls and oversees the U.S. monetary system and credit supply.

(Source: Insurance Information Institute )

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Definition and meaning of FEDERAL INSURANCE ADMINISTRATION / FIA :

FEDERAL INSURANCE ADMINISTRATION / FIA: Federal agency in charge of administering the National Flood Insurance Program. It does not regulate the insurance industry.

(Source: Insurance Information Institute )

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Definition and meaning of FIDELITY BOND :

FIDELITY BOND: A form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.

(Source: Insurance Information Institute )

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Definition and meaning of FIDUCIARY BOND :

FIDUCIARY BOND: A type of surety bond, sometimes called a probate bond, which is required of certain fiduciaries, such as executors and trustees, that guarantees the performance of their responsibilities.

(Source: Insurance Information Institute )

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Definition and meaning of FIDUCIARY LIABILITY :

FIDUCIARY LIABILITY: Legal responsibility of a fiduciary to safeguard assets of beneficiaries. A fiduciary, for example a pension fund manager, is required to manage investments held in trust in the best interest of beneficiaries. Fiduciary liability insurance covers breaches of fiduciary duty such as misstatements or misleading statements, errors and omissions.

(Source: Insurance Information Institute )

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Definition and meaning of FLEXIBLE PREMIUM :

FLEXIBLE PREMIUM*: A premium payment method sometimes offered in connection with annuities and with some types of life insurance that allows the contract owner or policy owner to alter the amount and the frequency of payments, within specified boundaries defined by the insurer and the law.

(Source: Insurance Information Institute )

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Definition and meaning of FLOATER :

FLOATER: Attached to a homeowners policy, a floater insures movable property, covering losses wherever they may occur. Among the items often insured with a floater are expensive jewelry, musical instruments and furs. It provides broader coverage than a regular homeowners policy for these items.

(Source: Insurance Information Institute )

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Definition and meaning of FRONTING :

FRONTING: A procedure in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission. Often, the fronting insurer is licensed to do business in a state or country where the risk is located, but the reinsurer is not. The reinsurer in this scenario is often a captive or an independent insurance company that cannot sell insurance directly in a particular country.

(Source: Insurance Information Institute )

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Definition and meaning of FREQUENCY :

FREQUENCY: Number of times a loss occurs. One of the criteria used in calculating premium rates.

(Source: Insurance Information Institute )

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Definition and meaning of FUTURES :

FUTURES: Agreement to buy a security for a set price at a certain date. Futures contracts usually involve commodities, indexes or financial futures.

(Source: Insurance Information Institute )

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Definition and meaning of GAP INSURANCE :

GAP INSURANCE: An automobile insurance option, available in some states, that covers the difference between a carÕs actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. Mainly used for leased cars. (See Actual cash value)

(Source: Insurance Information Institute )

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Definition and meaning of GENERAL ACCOUNT :

GENERAL ACCOUNT*: An undivided investment account in which insurers maintain funds that support contractual obligations for guaranteed insurance products such as whole life insurance or fixed-rate annuities. Contrast with separate account.

(Source: Insurance Information Institute )

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Definition and meaning of FREE-LOOK PERIOD :

FREE-LOOK PERIOD: A period of up to one month during which the purchaser of an annuity can cancel the contract with no penalty. Rules vary by state.

(Source: Insurance Information Institute )

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Definition and meaning of FRAUD :

FRAUD: Intentional lying or concealment by policyholders to obtain payment of an insurance claim that would otherwise not be paid, or lying or misrepresentation by the insurance company managers, employees, agents and brokers for financial gain.

(Source: Insurance Information Institute )

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Definition and meaning of FORCED PLACE INSURANCE :

FORCED PLACE INSURANCE: Insurance purchased by a bank or creditor on an uninsured debtorÕs behalf so if the property is damaged, funding is available to repair it.

(Source: Insurance Information Institute )

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Definition and meaning of FLOOD INSURANCE :

FLOOD INSURANCE: Coverage for flood damage is available from the federal government under the National Flood Insurance Program but is sold by licensed insurance agents. Flood coverage is excluded under homeowners policies and many commercial property policies. However, flood damage is covered under the comprehensive portion of an auto insurance policy. (See Adverse selection)

(Source: Insurance Information Institute )

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Definition and meaning of FOREIGN INSURANCE COMPANY :

FOREIGN INSURANCE COMPANY: Name given to an insurance company based in one state by the other states in which it does business.

(Source: Insurance Information Institute )

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Definition and meaning of FRATERNAL BENEFIT SOCIETY :

FRATERNAL BENEFIT SOCIETY*: See Fraternal insurer

(Source: Insurance Information Institute )

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Definition and meaning of FRATERNAL INSURER :

FRATERNAL INSURER*: A nonprofit organization that is operated solely for the benefit of its members and that provides its members with social and insurance benefits. Also known as fraternal benefit society.

(Source: Insurance Information Institute )

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