Glossary of Insurance Terms
Printed with permission from the Insurance Institute of Canada.
Please choose a letter to continue:
Face Brick
Face of Policy
Fair Market Value
Fellow, Chartered Insurance Professional (F.C.I.P.)
Fire Damage
Fire Department Service Clause
Fire Insurance
Fire Marshall
Fire Resistant
Fixed Assets
Fixtures
Flat Cancellation
Fleet Policy
Floater Policy
Forgery
Frame
Fraud
Fraudulent
Fraudulent Misrepresentation
Free on Board (F.O.B.)
Friendly Fire
Face Brick
Brick, chosen for its visual rather than its structural
characteristics, used on wall's exposed surface.
Face of Policy
The front of the policy on which normally the name of the
insurance company, the name of the insured, the amount of
insurance and the type of insurance appear among many
other items.
Fair Market Value
Price at which a buyer and seller, under no compulsion to
buy or sell, will trade.
Fellow,
Chartered Insurance Professional (F.C.I.P.)
A professional designation awarded to a
Chartered Insurance
Professional (C.I.P.) after the successful completion of several additional -
university level - educational requirements as designated
by the Insurance Institute of Canada.
Fire Damage
Damage caused by fire.
Fire
Department Service Clause
A provision in a fire insurance policy agreeing to pay
the cost of bringing a fire department to the location of
the property insured in the event of a fire. It is
valuable where the insured's property is not in a
built-up area with its own fire department or where the
risk is sufficiently large to require additional fire
department services.
Fire Insurance
Coverage for losses from fire and lightning and also the
resultant damage caused by smoke and water. Usually
supplemented by Extended Coverage Insurance. See
definition.
Fire Marshall
A public official involved in fire prevention and in
investigation of fires particularly where arson is
suspected.
Fire Resistant
A fire resistant building or article is generally
designed to resist certain higher heat temperatures for a
certain period of time. It has a lesser degree of
resistance to fire and ranks slightly more hazardous than
"fireproof."
Fixed Assets
Tangible long-term assets such as land, building,
furniture, fixtures, machinery, equipment etc. held for
use rather than for sale.
Fixtures
Anything that is attached to real property is known as a
"fixture." Fixtures when permanently attached
to real property become part of the real property.
Tenant's fixtures are fixtures of a removable nature and
are the responsibility of the tenant for insurance
purposes. Whether a fixture is a tenant's fixture and
movable or a landlord's fixture and immovable is
frequently determined by the purpose of the fixture.
Flat Cancellation
The cancellation of a policy as of the effective date
with all paid premium refunded.
Fleet Policy
In automobile insurance, this is a policy insuring a number
of cars for one owner. In marine insurance, a policy
insuring a number of ships for one owner.
Floater Policy
A policy covering the same risk at a number of perhaps
unspecified locations possibly over a wide area (even
world-wide); usually includes goods being frequently
moved from one location to another, e.g., Fur Floater,
Jewelry Floater, Contractors' Equipment Floater, etc.
Forgery
1) The illegal signing of another's name to a document,
such as, a cheque.
2) Falsely making or altering a written instrument.
Frame
Refers to the construction of a building built of lumber.
Fraud
1) Methods used to deceive to cause unwarranted
favourable decision for one's own benefit.
2) Deliberate misrepresentation or misstatement.
3) Concealment of facts which should at the time be made
known.
Fraudulent
Dishonest; based on or obtained by fraud.
Fraudulent
Misrepresentation
A false statement made knowing it to be false and
intending another to act on it to his detriment, or made
carelessly or recklessly without regard to whether it is
true or false.
In insurance it is most frequently found in the intentional misrepresentation of a risk to obtain insurance or in proof of loss after the loss occurs.
Free on
Board (F.O.B.)
When goods are shipped F.O.B., the shipper is responsible
only until the goods have been placed on board the vessel
or freight car or truck or other means of transport.
After that the risk belongs to the consignee.
Friendly
Fire
A fire confined to the place it is supposed to be,
e.g., in the fireplace; in the incinerator. See Hostile
Fire.
