The broker who processes premiums and claims under reinsurance placed by more than one broker for the cedant.
Insurance Encyclopedia
Flag Carrier
An airline of one national registery whose government gives it partial or total monopoly over international routes.
Flag of Convenience
Every State, whether coastal or not, has the right to sail ships under its flag on the high seas. Each State fixes the conditions for the grant of its nationality to ships for the registration of ships in the territory and for the right of fly its flag. Ships have the nationality of the state whose flag they are entitled to fly. Flags of convenience are the national flags of those States with whom ship-owners register their vessels.
Flag of vessel/flag of convenience
Indication of the state where the vessel is registered and which is responsible for safety standards. A shipowner may choose a particular state because of less rigorous standards. Such a state is a flag of convenience, e.g. Liberia. Underwriters take account of the ‘flag’ when assessing the risk.
Flame
The light given off burning gases and incandescent particles.
Flammable Liquid
A liquid substance, such as gasoline, which is readily capable of igniting, sustaining, or accelerating a fire.
Flare-up
In workers’ compensation cases, this phrase is sometimes used to refer to a recurrence of an industrial injury or illness and refers specifically to the symptoms that are considered to be related to the natural course of the previous injury or illness and not to a new injury from current employment.
Flash drought –
A rapid onset and intensification of a drought. The combination of abnormally high temperatures (heat waves) combined with increased wind speeds, greater solar radiation, and lower-than-normal rates of precipitation can rapidly affect the local climate. It is often tied to La Nina events and typically occurs during the warm season in the central U.S. Economic damages can be significant.
Flashover
The preheating of combustibles in a room or building, allowing the contents to be brought to their ignition temperature almost immediately.
Flat amount formula
Mathematical method used to determine the retirement benefit for participants in a defined benefit pension plan (DBPP). This type of formula gives the same monthly or annual benefit amount to each retiree (e.g., $700 per month).