Facultative reinsurance  :: A reinsurance arrangement covering a single risk as opposed to a treaty arrangement; commonly used for very large risks or portions of risk written by a single insurer, that are shared among several reinsurers. 

 

Facultative  :: Type of reinsurance in which risks is coded on an individual basis. The coding company can choose whether or not to reinsurer can decide to accept or reject the business. 

 

Facultative-obligatory reinsurance  :: A facultative reinsurance facility with an obligation placed on the reinsurer to accept. 

 

FIA  :: Abbreviation of Fellow of the Institute of Actuaries. 

 

Fidelity Guarantee insurance  :: Commercial insurance that covers misappropriation of funds or other wrongdoing by an employee. It is also called fidelity insurance. 

 

Fidelity Policy  :: A form of protection which reimburses an employer for losses caused by dishonest or fraudulent acts of employees. 

 

Fiduciary  :: A person who holds something in trust for another. 

 

Fire  :: A combustion accompanied by a flame or glow, which escapes its normal confines to cause damage. 

 

First Loss Insurance  :: Type of fire insurance or theft insurance in which the full value of the insured item is declared, but a lower sum insured (at a consequently lower premium). 

 

Fleet Insurance  :: Motor insurance policy that covers a group of vehicles from one organization. 

 

Fortuitous Loss  :: Unforeseen and unexpected loss that occurs as a result of chance. 

 

Franchise  :: In insurance, a franchise is an agreed figure below which an insurance company does not have to meet a claim. A loss above the franchise figure is paid in full. 

 

Fronting  :: In insurance, selling certain products with the intension of passing them on to another company.