REINSURANCE: (i) Organization established by Insurers and Reinsurers, whereby Insurers can obtain Reinsurances for exposures that individual Reinsurers would not readily accept hence, a “residual market” organization for Reinsurance. Reinsurers participating in the Reinsurance association typically take pro-rata shares of all Reinsurance placed in the facility. (ii) A market device that provides insurance for individuals or other entities that cannot obtain coverage from an insurer on a voluntary basis, by sharing premiums and losses for such entities among participating insurers. (iii) Organization, analogous to Lloyd’s of London or a stock exchange, for the voluntary offering and buying of Reinsurance.
***
A pooling mechanism for insureds not able to obtain insurance in the voluntary market. Insurers write and issue policies but cede premium and losses on those policies to a central pool in which all insurers share.
***
An agreement by insurer allowing a broker to accept insurance of a defined category on the insurer’s behalf.
***
MEDICAL,USA: Building location, equipment, and supplies for delivery of patient medical care (e.g., inpatient and outpatient hospital, acute or long-term care, intermediate or skilled nursing facilities).
Insurance Encyclopedia
Facility charge
Some managed care plans may vary cost shares for services based on place of treatment—in effect, charging a cost for the facility in which the service is received.
Facility for Dispensation for Liner shipping Rebating Arrangements
Where the conference ships are not available but non-conference vessels are available, the shippers have to obtain dispensation from the conference for shipping by non-concerned will not be deemed to be a defaulter and he shall be able to claim rebate due to him.
Facility of payment clause (Life Insurance)
A clause in industrial life coverage that states the insurer is permitted to pay some of the policy proceeds to a relative or other person who possesses the policy and seems entitled to the policy. This is done to minimize legal costs when settling an estate.
Facility practice expense
One of three components in the formula used to find out the relative value of physician services paid under the resource-based relative value scale (RBRVS). Facility practice expense corresponds to the physician’s direct and indirect costs associated with each service provided in a hospital, ambulatory surgery center (ASC), or skilled nursing facility (SNF).
Facility provider number
Number assigned to a facility (e.g., hospital, laboratory, radiology office, nursing facility) to be used by the facility to bill for services, or by the performing physician to report services done at that location.
Facility specific
Method of establishing insurance rates based on facility expenditures on items specific to patient care. It pays different rates to providers that deliver the same type of service.
Facility-of-payment clause
Insurance contract rule or section of a life insurance policy that allows the managed care payer or insurance company to reimburse someone other than the member or provider (e.g., designated beneficiary or estate of the insured). This clause allows the insurance company to pay benefits to the beneficiary in a timely manner.
Fact-finding
Under the FSA ‘know your customer’ rule (Conduct of Business Rule 5.2.5) a firm making a recommendation on a designated investment (and certain pension transactions) to a private customer must take reasonable steps to acquire sufficient personal and financial information before making the recommendation. There is no prescribed method of eliciting information but firms should have a suitable factfinding’ process. The document recording the information is a ‘fact-find’. There are special rules for Friendly Society policies not exceeding £50 per annum or £1 per week.
fact-oriented V codes
Diagnostic codes that do not describe a problem or a service but state a fact. Generally these codes do not represent an outpatient primary or inpatient principal diagnosis.