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F. F1 F2 F3 F4 F5 F6 F7 F8 F9 Fa Fe Fg Fi Fl Fo Fp Fr Fs Ft Fu Fy
Fib Fic Fid Fie Fif Fig Fil Fin Fio Fir Fis Fit Fiv Fix

Finite risk reinsurance

Similar to financial reinsurance but has more risk transfer. It is a retrospectively rated rein surance in which the reinsurer’s liability is finite, i.e. capped. The multi-year contract enables the reinsurer to smooth the cedant’s losses over time by providing funds for paying losses that are eventually restored to the reinsurer under an adjustable clause. The cedant gets credit enhancement by an improvement in key ratios. Investment income is an underwriting component. Finite products include: finite quota share; loss portfolio transfers; time and distance; adverse development cover; spread loss cover; financial quota share.
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A form of retrospectively rated reinsurance in which the reinsurer’s ultimate liability over the term of the contract is typically limited to no more than 300 percent of the premium ceded. Its primary objectives are to stabilize earnings and reduce reinsurance costs.

FIO

The Federal Insurance Office, established by the Dodd-Frank Act, was created to provide federal oversight of the insurance and reinsurance industries, although FIO does not have regulatory authority. FIO, along with state insurance regulators, participates at the IAIS on international regulatory issues and has the express authority, along with U.S. Trade Representative, to negotiate covered agreements with one or more foreign jurisdictions on prudential matters with respect to the business of insurance or reinsurance. FIO is also tasked with the development of various reports to Congress on insurance issues, including how to modernize the U.S. system of regulation, a report on the global reinsurance market, and a report on the impact of the NRRA on state insurance regulators.

Fire

Combustion evidenced by a flame or glow. Insurance distinguishes between a hostile fire (one out of bounds) and friendly fire (such as that contained within the fire box of a stove).
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Combustion which is rapid enough to produce a flame or glow. A Fire, for the purposes of Property Insurance must be “hostile” which means it is not in a place in which it is intended to be. Fire connote actual ignition under accidental or fortuitous circumstances so far as its coverage under the Fire Insurance is concerned. Fires in their proper contained area are called “friendly Fires” and are not covered under most basic Fire Insurance Policies. Scorching without ignition is not a Fire. A Fire lighted for a definite purpose, say, for warming or manufacturing is not a Fire as understood in the Fire Insurance parlance if it is confined within its own limits. If such Fire breaks out of its bounds and ignites other property, then the loss is within the scope of ‘Fire’ Insurance in view of both the elements “ignition,” and “accident” being present. In other words, there is said to be a Fire within the meaning of Fire Insurance when (a) there is actual ignition (b) the property is one which ought to have been on Fire and (c) the Fire is purely accidental or fortuitous in origin, as far as the insured is concerned.
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UK: Occurs where there is actual ignition that is accidental or fortuitous in origin from the insured’s standpoint. The term does not include a fire lighted for a specific purpose while confined to its normal limits (e.g. in a grate), but includes fortuitous damage caused if property is inadvertently thrown or dropped onto it. A policyholder who had hidden jewellery beneath the fuel in a grate and, forgetfully, lit the fire later was able to recover. Unburned property damaged by water used for extinguishment is ‘fire’ damage under the proximate cause doctrine.

Fire (Consequential Loss) Insurance for Loss of Profit

The consequential loss Insurance provides cover for lost profit, increased cost of working etc. The Policy provides for payment of (a) net profit (b) standing charges i.e. expenses which continue to accrue at their normal level despite the reduction in earning capacity. (c) increased cost of working i.e. expenses incurred in maintaining production by the adoption of temporary expedients.