Definition and meaning of FEDERAL FUNDS :

FEDERAL FUNDS: Reserve balances that depository institutions lend each other, usually on an overnight basis. In addition, Federal funds include certain other kinds of borrowing by depository institutions from each other and from federal agencies.

(Source: Insurance Information Institute )

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Definition and meaning of FARMOWNERS-RANCHOWNERS INSURANCE :

FARMOWNERS-RANCHOWNERS INSURANCE: Package policy that protects the policyholder against named perils and liabilities and usually covers homes and their contents, along with barns, stables and other structures.

(Source: Insurance Information Institute )

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Definition and meaning of EQUITY :

EQUITY: In investments, the ownership interest of shareholders. In a corporation, stocks as opposed to bonds.

(Source: Insurance Information Institute )

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Definition and meaning of ENVIRONMENTAL IMPAIRMENT LIABILITY COVERAGE :

ENVIRONMENTAL IMPAIRMENT LIABILITY COVERAGE: A form of insurance designed to cover losses and liabilities arising from damage to property caused by pollution.

(Source: Insurance Information Institute )

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Definition and meaning of ERRORS AND OMISSIONS COVERAGE / E&O :

ERRORS AND OMISSIONS COVERAGE / E&O: A professional liability policy covering the policyholder for negligent acts and omissions that may harm his or her clients.

(Source: Insurance Information Institute )

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Definition and meaning of ESCROW ACCOUNT :

ESCROW ACCOUNT: Funds that a lender collects to pay monthly premiums in mortgage and homeowners insurance, and sometimes to pay property taxes.

(Source: Insurance Information Institute )

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Definition and meaning of COMMUTATIVE CONTRACT :

COMMUTATIVE CONTRACT*: An agreement under which the contracting parties specify the values that they will exchange; moreover, the parties generally exchange items or services that they think are of relatively equal value. Contrast with aleatory contract.

(Source: Insurance Information Institute )

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Definition and meaning of ENDOWMENT INSURANCE :

ENDOWMENT INSURANCE*: Life insurance that provides a policy benefit payable either when the insured dies or on a stated date if the insured is still alive on that date.

(Source: Insurance Information Institute )

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Definition and meaning of ENDORSEMENT :

ENDORSEMENT: A written form attached to an insurance policy that alters the policyÕs coverage, terms, or conditions. Sometimes called a rider.

(Source: Insurance Information Institute )

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Definition and meaning of EMPLOYEE DISHONESTY COVERAGE :

EMPLOYEE DISHONESTY COVERAGE: Covers direct losses and damage to businesses resulting from the dishonest acts of employees. (See Fidelity bond)

(Source: Insurance Information Institute )

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Definition and meaning of ELIMINATION PERIOD :

ELIMINATION PERIOD: A kind of deductible or waiting period usually found in disability policies. It is counted in days from the beginning of the illness or injury.

(Source: Insurance Information Institute )

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Definition and meaning of EMPLOYEE RETIREMENT INCOME SECURITY ACT / ERISA :

EMPLOYEE RETIREMENT INCOME SECURITY ACT / ERISA: Federal legislation that protects employees by establishing minimum standards for private pension and welfare plans.

(Source: Insurance Information Institute )

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Definition and meaning of EMPLOYERÕS LIABILITY :

EMPLOYERÕS LIABILITY: Part B of the workers compensation policy that provides coverage for lawsuits filed by injured employees who, under certain circumstances, can sue under common law. (See Exclusive remedy)

(Source: Insurance Information Institute )

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Definition and meaning of EMPLOYMENT PRACTICES LIABILITY COVERAGE :

EMPLOYMENT PRACTICES LIABILITY COVERAGE: Liability insurance for employers that covers wrongful termination, discrimination and other violations of employeesÕ legal rights.

(Source: Insurance Information Institute )

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Definition and meaning of EXCESS OF LOSS REINSURANCE :

EXCESS OF LOSS REINSURANCE: A contract between an insurer and a reinsurer, whereby the insurer agrees to pay a specified portion of a claim and the reinsurer to pay all or a part of the claim above that amount.

(Source: Insurance Information Institute )

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Definition and meaning of EXCLUSION :

EXCLUSION: A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations.

(Source: Insurance Information Institute )

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Definition and meaning of FACE AMOUNT :

FACE AMOUNT*: For a fixed-amount whole life insurance policy, the amount of the death benefit payable if the insured person dies while the policy is in force.

(Source: Insurance Information Institute )

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Definition and meaning of EXTENDED TERM INSURANCE OPTION :

EXTENDED TERM INSURANCE OPTION*: One of several nonforfeiture options included in life insurance policies that allows the owner of a policy with a cash value to discontinue premium payments and to use the policyÕs net cash value to purchase term insurance for the full coverage amount provided under the original policy for as long a term as the net cash value can provide. (See Nonforfeiture options)

(Source: Insurance Information Institute )

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Definition and meaning of FACULTATIVE REINSURANCE :

FACULTATIVE REINSURANCE: A reinsurance policy that provides an insurer with coverage for specific individual risks that are unusual or so large that they arenÕt covered in the insurance companyÕs reinsurance treaties. This can include policies for jumbo jets or oil rigs. Reinsurers have no obligation to take on facultative reinsurance, but can assess each risk individually. By contrast, under treaty reinsurance, the reinsurer agrees to assume a certain percentage of entire classes of business, such as various kinds of auto, up to preset limits.

(Source: Insurance Information Institute )

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Definition and meaning of FAIR ACCESS TO INSURANCE REQUIREMENTS PLANS / FAIR PLANS :

FAIR ACCESS TO INSURANCE REQUIREMENTS PLANS / FAIR PLANS: Insurance pools that sell property insurance to people who canÕt buy it in the voluntary market because of high risk over which they may have no control. FAIR Plans, which exist in 28 states and the District of Columbia, insure fire, vandalism, riot and windstorm losses, and some sell homeowners insurance which includes liability. Plans vary by state, but all require property insurers licensed in a state to participate in the pool and share in the profits and losses. (See Residual market)

(Source: Insurance Information Institute )

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Definition and meaning of FAMILY BENEFIT COVERAGE :

FAMILY BENEFIT COVERAGE*: A type of supplementary benefit rider offered in conjunction with a life insurance policy that insures the lives of the insuredÕs spouse and children. Also known as dependent life insurance and spouse and childrenÕs insurance rider.

(Source: Insurance Information Institute )

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Definition and meaning of EXTENDED REPLACEMENT COST COVERAGE :

EXTENDED REPLACEMENT COST COVERAGE: Pays a certain amount above the policy limit to replace a damaged home, generally 120 percent or 125 percent. Similar to a guaranteed replacement cost policy, which has no percentage limits. Most homeowner policy limits track inflation in building costs. Guaranteed and extended replacement cost policies are designed to protect the policyholder after a major disaster when the high demand for building contractors and materials can push up the normal cost of reconstruction. (See Guaranteed replacement cost coverage)

(Source: Insurance Information Institute )

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