An Act, largely superseded by the Health and Safety at Work, etc., Act 1974, that extended certain common law duties of employers towards factory employees. Generally, the duties require employers to take reasonable care that the precautionary measures are not only adopted but are strictly observed. Liability is on the occupier of the factory, unless exceptionally it attaches to the owner. Most health and safety obligations are now covered under the Health and Safety At Work, etc., Act 1974 and the Management of Health and Safety at Work Regulations 1999.
Insurance Encyclopedia
Factory
Widely defined in the Factories Act 1961, s.175, the definition includes air any premises, open included, where people are employed in manual labour in activities such as manufacturing, repairing, cleaning, demolition and the slaughter of animals.
Factory Mutual
A mutual insurer specializing in large risks, with special emphasis on loss prevention.
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A mutual insurance company insuring only properties that meet high underwriting standards. The typical risk is fire-resistive construction with a central station alarm.
Factory mutuals
US group of direct underwriting mutuals specialising in highly protected risks of large concerns on a recriprocal reinsurance basis. The objective is to provide insurance and safety engineering services for large manufacturers, substantial housing projects and public institutions.
Factual Expectation
In law, a high likelihood (but not a currently enforceable right) of acquiring future property. A factual expectation differs from a perfected future interest and gives the holders of that future interest some current rights to the property: in contrast, a mere factual expectation does not give the holder any current rights to the property, including the right to insure it.
Facultative automatic
A form of property and casualty reinsurance that is a hybrid between facultative and treaty. A bordereau of risks ceded is submitted to the reinsurer that has limited rights to decline individual risks.
Facultative Certificate of Reinsurance
A contract formalizing a reinsurance cession on a specific risk.
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See: “Reinsurance, Facultative Certificate of Reinsurance “
Facultative Obligatory Reinsurance
The Ceding Company is not bound’ to automatically cede to the treaty but has the right of making cessions, where it chooses to do so. the Reinsurer, for his part undertakes to accept all the cessions, within the limits of a certain number of lines and/or a maximum amo unt.
Facultative obligatory treaty
a contract for reinsurance whereby the ceding company may cede risks of any agreed class which the reinsurer must accept if ceded
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Fac-oblig’ allows the cedant to select the risks he offers to the reinsurer who must then accept all cessions within the treaty. It is normally arranged after a surplus treaty and provides automatic facultative cover for the cedant when the surplus treaty capacity is full. It differs from a second surplus treaty only in that the cedant has a choice.
Facultative Obligatory Treaty (also known as Facultative Semi-Automatic Treaty, Facultative Semi-Obligatory Treaty)
A reinsurance contract under which the ceding company can select and the reinsurer is obligated to accept cessions of risks of a defined class, provided the risks fall within the contract guidelines.