1. Lump sum dollar amount paid by an insurance company to a disabled insured who has disability insurance to pay off an obligation. 2. Payment of a lump-sum benefit to an insurance plan participant. Also known as buy-out settlement , commutation , or settlement .
Insurance Encyclopedia
Financial statement
A firm’s operating statements, including balance sheet and profit and loss statement, along with associated information. Underwriters frequently request financial statements when they provide both new business and renewal quotations. This is because an insured’s financial condition is an important factor in assessing its insurability, commitment to loss control programs, and ability to pay premiums.
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The disclosure of the financial results of a firm’s operations. It involves the balance sheet, profit and loss statement, and associated information.
Financing Risk
Measures to finance the losses that do occur. Funds may be required to repair or restore damaged property, to settle liability claims, or to replace the services of disabled or deceased employees or owners. In some instances, the firm will decide not to restore the damaged property or replace the disabled or deceased person. Nevertheless, it may also have suffered a financial loss through a reduction in its assets or its future earning power. he tools in this second category include (i) those transfers, including purchase of Insurance, that are not considered risk control devices and (ii) retention, which includes “self-Insurance.”
findings and award (F&A)
In workers’ compensation when settling a temporary or permanent disability case, this is the final determination and monetary settlement of the referee or appeals board.
findings and order (F&O)
In workers’ compensation, this is usually a phrase used in connection with a “take nothing” decision against the applicant (injured worker).
Fine
Punishment established by law to pay a sum of money that is imposed on an individual who has committed an act of wrongdoing.
Fine arts floater
See: Floater.
Fine Arts Insurance (Fine Arts Floater)
Covers fine arts, such as antiques, leaded glass, and other art work of all types usually on all risk basis.
Fine Arts Valued Insurance Policy(ies)
Standard Fire and Special Perils Policy: Valued Policy(ies) can be issued only for properties whose market value cannot be ascertained e.g., Curios, Works of Art, Manuscripts, Obsolete machine and the like subject to the valuation certificate being submitted and found acceptable the insurer.
Fine Print
A reference to imaginary small type in a policy contract supposedly containing exclusions, reductions, exemptions and limitations of the coverage. In some Countries the Insurance Authority or Government prescribes specifications for the minimum type size that can be used in a policy, and they also provide that exclusions cannot be printed in type smaller than that used to print the benefits.
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Small-size type in a contract that is purported to contain omissions, exemptions, and coverage limits. State laws largely prohibit printing exclusions in smaller font than that used for the rest of the contract. Laws also mandate the size of font that must be used in contracts.