Face Amount
The amount stated on the appearance of the insurance policy that will be paid in case of death or at prime of life. It does not include dividend additions or additional amounts allocated under accidental death or other special provisions.

Facultative Reinsurance
A reinsurance strategy that presents an insurer with coverage for specific personality risks that are strange or so large that they aren’t covered in the insurance company's reinsurance treaties. Reinsurance agreed on a personage issue-by-issue basis rather than on a treaty basis.

Fair Plans
Insurance groups that sell material goods insurance to people who can’t buy it in the voluntary market because of high risk over which they may have no control.

Family Care Expenses
An employee on disability who has family care responsibilities may need further help when trying to return to employment. This type of support provides an incentive to the employee who is taking part in a rehabilitation program by allowing credit or partial compensation for certain expenses incurred for people care.

Federal Funds
Preserve balances that depository institutions lend each other, usually on an overnight basis. In calculation, centralized funds include certain other kinds of borrowings by depository organization from each other and from federal agencies.

Federal Reserve Board
Board that take charge of the banking system by issuing regulations controlling bank holding companies and federal rules over the banking industry.

Fidelity Bond
A form of guard that covers policyholders for losses that they incur as a result of fraudulent acts by particular individuals. It regularly insures a business for losses caused by the dishonest acts of its employees.

Financial Guarantee Insurance
Covers losses from explicit financial transactions and guarantees that investors in debt instruments, such as community acquaintance, receive timely payment of principal and interest if there is a default and raise the credit rating of debt to which the promise is attached.

Financial Intermediation
Utilize of liability to finance venture in high-quality assets in the transaction; both the investments and supporting debt are duration matched and cash flow matched.

Financial Leverage
The ratio of debt and debt-like instruments to capitalization

Financial Strength
An insurer’s monetary security as determined by an independent ratings company. The ratings organization examines the insurer's ability to pay claims under the terms of its insurance policies and contracts.

Finite Risk Reinsurance
Agreement under which the ultimate legal responsibility of the reinsurers is capped and on which anticipated investment income is expressly recognized as an underwriting component. Also identified as Financial Reinsurance because this type of coverage is often bought to improve the balance sheet belongings of statutory accounting main beliefs.

Fixed Charge Coverage
The relative amount of the sum of pretax operating income plus interest expense to interest expense.

Fixed Annuity
An allowance that guarantees a specific rate of return. In the case of a deferred annuity, a least amount rate of interest is guaranteed during the savings phase. During the payment phase, a fixed amount of income, paid on a regular agenda, is guaranteed.

Flood Insurance
Exposure for flood damage is accessible from the national government under the National Flood Insurance plan but is sold by licensed insurance agents. Flood coverage is excluded under homeowners’ policies and many commercial property policies.

Franchise insurance
Insurance contracts concerned to members of a detailed group under a group-like arrangement in which the employer or the organization collects and remits premiums.

Fraud
Dishonest act by policyholders to obtain recompense of insurance maintain that would or else not be covered by insurance. It also could engage lying or misrepresentation by an insurance company or its officials.

Frequency
The quantity of mortgages in a group that go to claim over a given phase of time divided by the total original number of mortgages in that class.