Insurance Information
Family Purpose Doctrine
Concept that imputes negligence committed by immediate family members while operating a family car to the owner of the car

Farmowners-Ranchowners Policy
A package policy for a farm or a ranch, providing property and liability coverages against personal and business losses.

Federal Crime Insurance
Insurance against burglary, larceny, and robbery losses offered by the federal government where the Federal Insurance Administration has determined that an insurance availability problem exists.

Federal Crop Insurance
Comprehensive coverage at rates subsidized by the federal government for unavoidable crop losses, including those that result from hail, wind, excessive rain, drought, freezes, plant disease, snow, floods, and earthquake.

Federal Flood Insurance
Insurance sold by private insurers with rates subsidized by the federal government to persons who reside in flood zones and whose community joins the program and agrees to establish and enforce flood control and land-use measures.

Fiduciary
A person holding the funds or property of another in a position of trust, and who is obligated to act in a prudent and ethical manner. An example would be an attorney, bank trustee, the executor of an estate, etc.

File and Use
Regulatory rule whereby the insurer must have rates, rules, and/or forms on file with a department of insurance prior to implementing them.

Financial Responsibility Law
A state law which may require motorists (the insured) to furnish evidence, either before or after involvement in an auto accident (depending on the individual state's law), of ability to pay for damages up to certain minimum dollar limits. These requirements commonly are met by carrying auto liability insurance with specified minimum limits or more.

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

Fire Insurance
Coverage for losses caused by fire and lightning, plus resultant damage caused by smoke and water.

First Party Coverage
An insurance coverage under which the policyholder collects compensation for losses from the insured's own insurer rather than from the insurer of the person who caused the accident.

Flat Cancel
Cancellation of an insurance contract as of its date of inception, without premium charge.

Floaters
Insurance policies that cover property that can be moved from one location to another for both transportation perils and perils affecting property at a fixed location.

Flood Insurance
Insurance sold by private insurers with rates subsidized by the federal government to persons who reside in flood zones and whose community joins the program and agrees to establish and enforce flood control and land-use measures.

Foreign Insurer
An insurance company licensed to operate in a state but has its home office in another state.

Franchise Insurance
Insurance under individual contracts issued to the employees of a common employer or the members of an association under an arrangement by which the employer or association agrees to collect the premiums and remit them to the insurer. The insurer usually agrees to waive its right to discontinue or modify any individual policy, unless its simultaneously discontinues or modifies all other policies in the same group.

Fraternal Insurance
A cooperative type of insurance provided by social organizations, such as members of a lodge or a fraternal order, for their members.

Fronting Company
An insurer that issues policies with the intention of transferring most of the insured exposure through reinsurance or other means to unauthorized insurers or reinsurers or captive insurers. This fronting insurer assumes little or no loss exposure; instead, financial arrangements are made to guarantee claims administration and payments. The fronting insurer is usually paid a percentage of the premium.