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 )

Also see these pages: FARMOWNERS-RANCHOWNERS INSURANCE , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: EXTENDED TERM INSURANCE OPTION , Insurance, Insurance Sitemap, Insurance Dictionary - E

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 )

Also see these pages: EXTENDED REPLACEMENT COST COVERAGE , Insurance, Insurance Sitemap, Insurance Dictionary - E

Definition and meaning of EXPENSE RATIO :

EXPENSE RATIO: Percentage of each premium dollar that goes to insurersÕ expenses including overhead, marketing and commissions.

(Source: Insurance Information Institute )

Also see these pages: EXPENSE RATIO , Insurance, Insurance Sitemap, Insurance Dictionary - E

Definition and meaning of EXCLUSIVE REMEDY :

EXCLUSIVE REMEDY: Part of the social contract that forms the basis for workers compensation statutes under which employers are responsible for work-related injury and disease, regardless of whether it was the employeeÕs fault and in return the injured employee gives up the right to sue when the employerÕs negligence causes the harm.

(Source: Insurance Information Institute )

Also see these pages: EXCLUSIVE REMEDY , Insurance, Insurance Sitemap, Insurance Dictionary - E

Definition and meaning of EXPERIENCE :

EXPERIENCE: Record of losses.

(Source: Insurance Information Institute )

Also see these pages: EXPERIENCE , Insurance, Insurance Sitemap, Insurance Dictionary - E

Definition and meaning of EXPOSURE :

EXPOSURE: Possibility of loss.

(Source: Insurance Information Institute )

Also see these pages: EXPOSURE , Insurance, Insurance Sitemap, Insurance Dictionary - E

Definition and meaning of EXTENDED COVERAGE :

EXTENDED COVERAGE: An endorsement added to an insurance policy, or clause within a policy, that provides additional coverage for risks other than those in a basic policy.

(Source: Insurance Information Institute )

Also see these pages: EXTENDED COVERAGE , Insurance, Insurance Sitemap, Insurance Dictionary - E

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 )

Also see these pages: FEDERAL FUNDS , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FEDERAL INSURANCE ADMINISTRATION / FIA , Insurance, Insurance Sitemap, Insurance Dictionary - F

Definition and meaning of FINITE RISK REINSURANCE :

FINITE RISK REINSURANCE: Contract under which the ultimate liability of the reinsurer is capped and on which anticipated investment income is expressly acknowledged as an underwriting component. Also known as financial reinsurance because this type of coverage is often bought to improve the balance sheet effects of statutory accounting principles.

(Source: Insurance Information Institute )

Also see these pages: FINITE RISK REINSURANCE , Insurance, Insurance Sitemap, Insurance Dictionary - F

Definition and meaning of FINANCIAL RESPONSIBILITY LAW :

FINANCIAL RESPONSIBILITY LAW: A state law requiring that all automobile drivers show proof that they can pay damages up to a minimum amount if involved in an auto accident. Varies from state to state but can be met by carrying a minimum amount of auto liability insurance. (See Compulsory auto insurance)

(Source: Insurance Information Institute )

Also see these pages: FINANCIAL RESPONSIBILITY LAW , Insurance, Insurance Sitemap, Insurance Dictionary - F

Definition and meaning of FIRE INSURANCE :

FIRE INSURANCE: Coverage protecting property against losses caused by a fire or lightning that is usually included in homeowners or commercial multiple peril policies.

(Source: Insurance Information Institute )

Also see these pages: FIRE INSURANCE , Insurance, Insurance Sitemap, Insurance Dictionary - F

Definition and meaning of FIRST-PARTY COVERAGE :

FIRST-PARTY COVERAGE: Coverage for the policyholderÕs own property or person. In no-fault auto insurance it pays for the cost of injuries. In no-fault states with the broadest coverage, the personal injury protection (PIP) part of the policy pays for medical care, lost income, funeral expenses and, where the injured person is not able to provide services such as child care, for substitute services. (See No-fault; Third-party coverage)

(Source: Insurance Information Institute )

Also see these pages: FIRST-PARTY COVERAGE , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FIXED ANNUITY , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FINANCIAL GUARANTEE INSURANCE , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FILE-AND-USE STATES , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FEDERAL RESERVE BOARD , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FIDELITY BOND , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FIDUCIARY BOND , Insurance, Insurance Sitemap, Insurance Dictionary - F

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 )

Also see these pages: FIDUCIARY LIABILITY , Insurance, Insurance Sitemap, Insurance Dictionary - F

Definition and meaning of EXCLUSIVE AGENT :

EXCLUSIVE AGENT: A captive agent, or a person who represents only one insurance company and is restricted by agreement from submitting business to any other company unless it is first rejected by the agentÕs company. (See Captive agent)

(Source: Insurance Information Institute )

Also see these pages: EXCLUSIVE AGENT , Insurance, Insurance Sitemap, Insurance Dictionary - E