Common Law defence used by employers before the passage of Workers Compensation Laws. It excused an employer form liability for injury to an employee caused by the carelessness or other wrongdoing of a fellow employee: the right of action was against the fellow employee and not against the employer.
Insurance Encyclopedia
Fellowship of the Chartered Insurance Institute (FCII)
The highest CII qualification. The basis of election is the presentation of a portfolio of evidence of the applicant’s abilities, achievements and experience. The starting point is an agreed examination. The starting point is an agreed examination benchmarked against the Advanced Diploma in Insurance or the post-1992 Associateship. The next step involves preparing a Fellowship plan including the applicant’s proposals in terms of timescale and ‘major achievements. The third step is a three-year period of continuous professional development and finally the applicant must complete a business ethics programme in recognition of the possible impact their decisions may have on others. Fellows are eligible for Chartered titles.
Fellowship of the Society of Financial Advisers
The CII’s highest qualification for financial advisers after passing 10 demanding examination papers.
FEMA
Federal Emergency Management Agency. This agency administers the National Flood Insurance Program.
Female lives
Mortality rates, more favourable to women than men, enable life insurers to offer lower rates for life cover than those charged for men. Typically, insurers will deduct four years from their tabular rates (based on male lives) to find the rate for a female life.
Fencing/guarding, etc., of machinery
Regulation 11 of PUWER places an absolute duty on the employer to prevent contact between people and dangerous machine parts by either preventing access or stopping the movement of the part. The following hierarchy of control must be followed ‘so far as is reasonably practicable’: fixed guards; other guards or protection devices; protection appliances (e.g. push sticks); information, instruction, training and supervision. This is to prevent or control exposure to mechanical hazards. Exposure to other hazards (e.g. scalds and burns, falling or ejection of articles) must also be prevented or controlled. Equipment should have clearly marked starting and stopping controls. Suitable means of isolation from sources of energy are also required. Equipment must be stable to prevent collapse or overturning and suitable lighting must provided.
FGU (from the ground up)
Describes all of a cedant’s losses over a period of time, including losses retained for their own account. This enables the reinsurer to assess the effect of shifts in direct underwriting experience and consider the possible effect on future reinsurance claims.
Fibre Glass Fuel Tanks for Motor
The trend to lighter vehicles means that such components are being installed in motor vehicles. The cost is substantial and hence can be covered under the policy on additional premium.
Fictitious groups
Fabricated groups created with the intention of purchasing insurance. These groups are barred by law from being insured.
FIDELITY BOND
A fidelity bond covers a business for losses incurred as a result of fraudulent activities by specified individuals, generally the dishonest acts of employees. These bonds can be written in several different ways.
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US: A form of protection which reimburses an employer for losses caused by dishonest or fraudulent acts of employees.
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An obligation of the insurance company against financial loss caused by the dishonest acts of employees.
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See: “Bond, Blanket Bond/Fidelity Bond”
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See: Employee dishonesty coverage.