A custom in an insurance market e.g., Lloyd’s whereby once a leading underwriter has accepted part of an insurance, other underwriters will tend to follow him.
Insurance Encyclopedia
Follow the settlements
A clause under which the reinsurer agrees to pay its share of the cedent’s settlements. The reinsurer is not normally obliged to pay if the reinsured is not liable under the policy or the loss is excluded under the treaty. The clause modifies the position by requiring the reinsurer to follow the settlement rather than the contract.
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REINSURANCE: Follow the settlements generally provides that a reinsurer must cover settlements made by the reinsured in a business-like manner, provided the settlement is arguably within the terms of the reinsured’s policy and the reinsurance agreement and the settlement is not affected by fraud, collusion or bad faith. It is an expectation that the reinsurer will abide by the reinsured’s good faith determination to settle, rather than litigate, claims under a reinsured policy and not re-litigate a reinsured’s settlements ceded to the reinsurance agreement. The term is often used interchangeably with follow the fortunes, and there may be overlap between the affect of follow the settlements and follow the fortunes when the “risk” is what generated the loss. Follow the settlements is focused on “loss settlement”, not necessarily tied to a “risk determination” arising out of follow the fortunes. Follow the settlements will not supersede the express terms and conditions of the reinsurance agreement.
Follow-up file
Reminder method used to track pending or resubmitted insurance claims and to telephone or send inquiries about nonpayment. Also called a suspense, tickler file , or tracing file . Also see tracing file or tickler file .
Follow-up medical-legal evaluation
In a workers’ compensation case, an evaluation done within 1 year following a comprehensive medical-legal examination performed by a qualified medical evaluator, agreed medical evaluator, or primary treating physician of the same injury or injuries.
Following Form
A term for a fire or other form written exactly under the same terms and coverage as other insurance on the same property.
Following form (Property Insurance)
A form that is written in exactly the same terms as other property insurance policies covering a piece of property.
Following underwriter
An underwriter of a syndicate or an insurance company that agrees to accept a proportion of a given risk on terms set by another underwriter called the leading underwriter.
Food and Drug Administration (FDA)
Federal agency that protects public health by investigating and testing for the safety, effectiveness, and security of human and veterinary drugs, biological products, medical devices, national food supply, cosmetics, and radiation-emitting objects that are sold in the United States.
Food Stamp Act of 1977
Required all household members to disclose Social Security numbers to verify that they were eligible to participate in the food stamp program.
Football Match Insurance
The Insurance covers the total abandonment of football match due to specified perils like Fire, lightning, explosion, earthquake, rain, flood, storm, riot, strike, malicious damage and terrorist act. The Policy covers the actual financial loss suffered by the insured i.e., the organizers. It is a condition under the Policy that no liability will attach even if a single ball is played. Change in venue or postponement of the match does not constitute a claim. It is prescribed that the tickets issued shall contain a stipulation that once a ticket is sold no refund will be allowed.