Insurance Terms
Face Amount: The amount of insurance provided by a policy, usually found on
its face.
False Pretense Coverage: Coverage that can be added to a Garage policy by
endorsement to insure a dealer against loss from voluntarily parting with a
covered auto by trick or scheme or from acquiring an auto from someone who
does not have title.
Farm Coverage part: Part of the Commercial Package policy, the Farm
Coverage Part provides both property and liability forms that can be used to
provide farm coverage on either a monoline or package basis.
Farm Liability Coverage Form: A form that is a part of the Farm Coverage
Part and is designed to provide liability coverage for farm operations.
Farm Property Coverage Form: A form that is part of the Farm Coverage part
and provides seven separate property coverages designed specifically for
farms.
Federal Crop Insurance: Comprehensive Insurance coverage with rates that are subsidized by the federal government for unavoidable crop losses
Fidelity Bond: A class of bonds which guarantees an employee’s honesty.
Today this coverage is generally provided through Employee Dishonesty
insurance.
Fiduciary Bond: A Judicial bond commonly used to bond fiduciaries:
guardians, administrators, trustees and executors, or persons appointed by a
court to manage the property of others. See Judicial bond.
File: A collection of information on a specific subject or person.
Film Coverage Form: An Inland Marine Coverage form that provides all-risk
coverage for exposed motion picture film, including sound recordings and
magnetic or video tapes that have been properly recorded until the first full
quota of positive prints or film have been made.
Financial Responsibility Law: State law which requires owners or operators of
autos to provide evidence that they have the funds to pay for automobile
losses for which they might become liable. Insurance is the usual method for
providing this evidence to the state.
Fire: Combustion accompanied by a flame or glow, which escapes normal confines to cause damage
First Party Insurance: A loss which applies to the insured’s own property or person
and thus involves only the insurer and the insured.
Flat Cancellation: The cancellation of a recently written insurance contract
without charge to the insured.
Floater Policy: Coverage on goods of a mobile nature, whatever their location.
Flood Insurance: Coverage against loss resulting from rising water
Floor Plan Coverage Form: An Inland Marine Coverage form that provides all
risk coverage for merchandise for sale that has been financed.
Florida Joint Underwriting Association: A market source for persons who are
unable to purchase Auto insurance through normal channels. It is a syndicate
of all licensed companies in Florida that write Auto insurance, with direct
operations performed in their behalf by a group of servicing carriers.
Forgery or Alteration Coverage Form: A Commercial Crime form that
covers loss from forgery or alteration of checks, drafts, promissory notes or
similar instruments.
Form: An insurance document such as a policy, endorsement, rider or
application.
Franchise Bond: A Surety bond that may be required by a public body when it
awards a franchise.
Franchise Deductible: A deductible that specifies that no payment will be
made until loss equals or exceeds a prescribed amount; then the loss is paid
in full.
Fraud: A false statement intended to deceive the insurer and induce it to part
with something of value or surrender a legal right. May void a policy.
Freight Coverage: An Ocean Marine coverage that provides protection for the
vessel owner in the event that freight charges are not paid.
Full Coverage: Often means all the coverage that is available. It usually applies
in connection with Automobile Insurance to include damage to the
automobile as well as liability protection. It also can mean coverage without
deductibles applicable.
Fund: Money held in trust to pay pension benefits
