F, G, H Flashcards

1
Q

Face Amount

A

the value of a policy to be provided upon maturity date or death.

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2
Q

Fair Access to Insurance Requirements (FAIR Plan)

A

state pools designed to provide insurance to property owners who are unable to obtain property insurance through conventional means.

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3
Q

Fair Value

A

the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale. Quoted market prices in active markets are the best evidence of fair value and shall be used as the basis for the measurement, if available. If a quoted market price is available, the fair value is the product of the number of trading units times market price.

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4
Q

Farm Owners Insurance

A

farm owners insurance sold for personal, family or household purposes. This package policy is similar to a homeowners policy, in that it has been developed for farms and ranches and includes both property and liability coverage for personal and business losses. Coverage includes farm dwellings and their contents, barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock.

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5
Q

Federal Flood Insurance

A

coverage for qualifying residents and businesses in flood prone regions through the National Flood Insurance Act, a federally subsidized flood insurance program enacted in 1968.

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6
Q

Federally Reinsured Crop

A

crop insurance coverage that is either wholly or in part reinsured by the Federal Crop Insurance Corporation (FCIC) under the Standard Reinsurance Agreement (SRA). This includes the following products: Multiple Peril Crop Insurance (MPCI); Catastrophic Insurance, Crop Revenue Coverage (CRC); Income Protection and Revenue Assurance.

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7
Q

Fees Payable

A

fees incurred but not yet paid.

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8
Q

Federal Emergency Management Agency (FEMA)

A

an independent agency, tasked with responding to, planning for, mitigating and recovery efforts of natural disasters.

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9
Q

Financial Reporting

A

insurance companies are required to maintain records and file annual and quarterly financial statements with regulators in accordance with statutory accounting principles (SAP). Statutory rules also govern how insurers should establish reserves for invested assets and claims and the conditions under which they can claim credit for reinsurance ceded.

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10
Q

Financial Statement

A

balance sheet and profit and loss statement of an insurance company. This statement is used by the NAIC and by State Insurance Commissioners to regulate an insurance company according to reserve requirements, assets and other liabilities.

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11
Q

Fire

A

Fire Legal Liability

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12
Q

Flood

A

coverage protecting the insured against loss or damage to real or personal property from flood. (Note: If coverage for flood is offered as an additional peril on a property insurance policy, file it under the applicable property insurance filing code.)

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13
Q

Foreign jurisdiction

A

a jurisdiction outside of the United States, Canada or any province or political subdivision of the foregoing.

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14
Q

Fraternal Insurance

A

a form of group coverage or disability insurance available to members of a fraternal organization.

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15
Q

Fronting

A

an arrangement in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission. Often, the fronting insurer is licensed to do business in a state or country where the risk is located, but the reinsurer is not.

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16
Q

Generally Accepted Accounting Principles (GAAP)

A

an aggregate of the accounting standards, principles and best practices for the preparation of financial statements allowing for consistency in reporting.

17
Q

Gross Premium

A

the net premium for insurance plus commissions, operating and miscellaneous commissions.

18
Q

Hard Market

A

a market characterized by high demand and low supply.

19
Q

Hazard

A

circumstance which tends to increase the probability or severity of a loss.

20
Q

Hold-Harmless Agreement

A

A risk transfer mechanism whereby one party assumes the liability of another party by contract.

21
Q

Homeowners Insurance

A

a package policy combining real and personal property coverage with personal liability coverage. Coverage applicable to the dwelling, appurtenant structures, unscheduled personal property and additional living expense are typical. Includes mobile homes at a fixed location.

22
Q

Hull Insurance

A

coverage for damage to a vessel or aircraft and affixed items.