Insurance companies have a duty to defend their insureds when legal action is brought against the insured. However, the actual suit may not be worded in such a manner as to indicate coverage. The court will compare the language of the suit with the language of the policy to see if coverage applies. This comparison of the complaint and the policy is known as the “four corners test.” Courts often broadly interpret the insurance company’s duty to defend and may impose bad faith penalties if the company fails to defend when there is any possibility that the claim is covered by the policy. (See Bad Faith).
Insurance Encyclopedia
Four-character subcategory
In the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) , a letter with two digits followed by a period or decimal point and one number that gives more information on the description of a condition.
Fourth and fifth digits
Numerical characters in the International Classification of Diseases, Ninth Revision, Clinical Modification (ICD-9-CM) code book after three digits that gives additional specific information about the diagnosis or procedure to be coded. Under Medicare guidelines, some diagnostic and procedure codes require fourth or fifth digits to pass insurance claims processing edits for reimbursement.
Fourth digit
Symbol used in the diagnostic code book titled International Classification of Diseases, Ninth Revision, Clinical Modification (ICD-9-CM) . It is used to indicate that a fourth digit is required for coding to indicate the highest level of specificity.
Fourth EU Motor Insurance Directive
Became law in the UK in January 2003. Principal aim is to improve the claims process for EU residents when claiming against an insurer based in another EU state. The UK’s response is the Motor Insurance Database which, on being given the vehicle registration number of the third party, will be able to trace the third party’s insurer.
FP
1. HCPCS Level II modifier that may be used with CPT or HCPCS Level II codes indicating a service provided is part of a family planning program. 2. Abbreviation for family practitioner. See family practitioner (FP) .
FR
See: Federal Register .
Fracking
the pumping of water and chemicals underground at high pressure to shatter rock formations and release gas the practice generates a considerable amount of waste liquid, which is Often disposed of by injecting it into deep rock formations where it can lubricate faults. the disposal of This liquid has been blamed for causing earthquakes to the extent that the United States Geological Service tracks earthquakes and studies those quakes thought to be created by fracking.
Fractional Premium
A proportionate amount of the regular premium usually used when a change in premium paying date is desired and the portion of the premium year between the old date and the new must be settled.
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A premium divided equally and paid at regular intervals, for example, quarterly.
Fractional premiums
Insurance premiums that are paid in installments (fractions of the annual premium) such as semiannually, quarterly, or monthly.