CII qualification. The only broad-based qualification specifically designed for administrative staff working in life and pensions offices.
Insurance Encyclopedia
Financial adviser
Person appointed by an independent intermediary or appointed representative to provide a range of financial services. If they advise on or arrange certain types of investment (pensions, life insurance, unit trusts and shares) they and the companies they represent must be FSAauthorised. Financial advisers just advising on loans, most mortgages, general insurance or bank/building society accounts do not have to be FSAauthorised until October 2004 in the case of mortgage advisers and January 2005 in the case of general insurance and term insurance advisers. Some financial advisers sell the products of a single firm while others, independent financial advisers, base their advice on all products in the market.
Financial Anti-Terrorism Act (FATA or PATRIOT Act) of 2001
Imposes new recordkeeping and government reporting requirements on banks, certain other financial institutions, and nonfinancial businesses for specified financial transactions and customer financial records. It was added to the Bank Secrecy Act as an attempt to help combat terrorism and money laundering. The International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 is Title III of the USA PATRIOT Act of 2001.
Financial capacity
The financial limit of an organization’s ability to absorb losses with its own funds or borrowed funds without major disruption. This value often comes into play when a risk manager attempts to find the appropriate retention amount. Any planned retention figures should fall below the financial capacity point.
Financial class
Individual’s income or ability to pay a debt.
Financial Condition Report (FCR) for Non-Life Insurance Companies in India
The non-life insurance companies have been mandated to submit the Financial Condition Report annually, effective 31st March, 2010 for the said financial year in the prescribed format. The objective of the FCR is to facilitate analysis of the current block of business as on the valuation date to bring out clearly the challenges the insurers face in terms of meeting the solvency requirements, their profitability and other risks viz. morbidity, liquidity, credit and expense, investment return, asset-liability mismatch, etc. This experience will also indicate the insurer’s position on these parameters for the next one year.
Financial data
Information about the financial status of managed care entities (e.g., medical loss ratio).
Financial derivatives
See: Derivatives.
Financial Guarantee / Credit Enhancement Insurance
A form of coverage in which the insurer guarantees the payment of interest and/or principal of the insured in connection with debt instruments issued by the insured.
Financial Guarantee Bond
A guarantee that others will pay sums of money due. A Sales Tax Bond, for instance guarantees the state that the merchant will pay his sales taxes on time and in full.