A period of up to 30 days during which the purchaser of an insurance policy has the opportunity to study the terms and conditions of the policy and decide to cancel without any penalty. Duration of the free look period varies by state and by type of coverage. For example, the free look period for health insurance is usually 10 days and the free look period is often 30 days for property and liability insurance.
Insurance Encyclopedia
Free of capture and seizure clause (FC & S)
War peril exclusion under SG policy. The War Exclusion Clause is now integral to the Institute Cargo Clauses and the International Hull Clauses.
Free of capture and seizure clause (Property Insurance)
A clause stipulating that losses stemming from war, seizure, or takeover are excluded from the policy.
Free of Charge
The Insurer allows no discount.
Free of Particular Average
Phrase describing an ocean marine Policy on a cargo or vessel which excludes (or frees the Insurer from paying) particular averages, obligating the Insurer to pay only General Averages (refer “average, particular” and “average, general”). Some policies exclude only particular averages which are less than a specified percentage of the value of the insured cargo or vessel, thus providing coverage for large particular averages (as well as for all general averages). There are two types of particular averages clauses: (i) free of particular average-American conditions (EPAAC) and (ii) free of particular average-English conditions (FPAEC). These clauses modify the basic free of particular average clause by restoring in full particular averages caused by certain perils.
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A clause, usually found in a marine insurance contract, that states losses less than certain amounts are not covered. This is essentially the same as a deductible.
Free of Particular Average Absolutely
A Marine Insurance Expression. Where it is used insurers are not liable for partial damage unless (a) the vessel in which the cargo is carried is stranded, sunk or burnt, or (b) an insured package is totally lost in the loading, transshipment or discharge or the loss or damage is attributable to fire, explosion or collision or impact of the vessel with an external substance other than water.
Free of Premium
No further premium is payable.
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.
Free on Board (FOB)
UK: A sales contract, mainly used for bulk cargoes (coal, grain), whereby the seller is responsible for the goods until loaded (‘over ship’s rail’) and the buyer is responsible for all charges (including insurance) thereafter.
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The designation of the place of free on board determines the responsibility for insuring shipped goods. For example, “free on board origination” or just “free on board” means that the seller’s responsibility for damage ends when the goods are loaded onto the carrier’s truck, train, or ship. At that point, any damage is the responsibility of the buyer.”Free on board destination” means that the shipper assumes responsibility for damage to the shipped goods until the goods are off-loaded at the buyer’s location. In either case, risk managers need to know when their responsibility for damage begins and ends in order to avoid gaps in coverage.
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The term has special significance in Marine Insurance, where it is vital to determine when title passes from the seller to the buyer. If the materials are shipped FOB point of destination, the seller is liable for damage caused during the course of transportation. If the material is shipped FOB point of departure, the buyer becomes liable for it.
Free Out (FO)
Cost of unloading a vessel is borne by the chartered.