Fair plans are property insurance pools that sell to people who cannot buy coverage in the voluntary market because of high risks such as hurricanes. FAIR plans, which exist in 28 states and the District of Columbia, insure against losses from fire, vandalism, riot, and windstorm losses. Some sell homeowners insurance that includes liability. Plans vary by state, but all require property insurers licensed in the state to participate in the pool and share in the profit and losses in the same proportion the companies write voluntary business. Often an insured must show that the property has been turned down in the voluntary market.In seven Atlantic and Gulf Coast states there are also “Beach and Windstorm” plans. Residences and businesses in certain areas of these states can purchase coverage against hurricanes and other severe windstorms. Plans differ in each of these states. Beach and Windstorm plans are available in New York, North Carolina, South Carolina, Florida, Alabama, Mississippi, and Texas. (See Assigned Risk; Joint Underwriting Association; Residual Market).
Tag: RAW
Fair analysis
The Insurance Mediation Directive requires firms to base their advice on a fair analysis, meaning that they must analyse a sufficiently large number of contracts before making a recommendation. See ADVISED SALES.
Fair and Accurate Credit Transactions (FACT) Act
Federal legislation (Public Law 108-159) enacted on December 4, 2003, that established medical privacy provisions as part of consumer credit law. This bill amended the Fair Credit Reporting Act (FCRA) to include improved medical privacy protections and protections against identity theft.
Fair Credit Billing Act (FCBA)
Federal regulations that apply to open-end credit accounts such as credit cards and revolving charge accounts for department store accounts. It gives consumers the right to dispute charges on their credit card accounts and either withhold payment or ask for a refund because of a billing error. It also allows consumers to dispute charges if they are dissatisfied with the quality of the merchandise received. The federal law limits the consumer’s responsibility for unauthorized charges to $50.
Fair Credit Reporting Act
Public Law 91-508 requires that an insurer tell an applicant if a consumer report may be requested. The applicant must also be told the scope of the possible investigation. Should the application be declined because of information contained in that report, the applicant must be given the name and address of the reporting agency. The insurer may not reveal the contents of the report. Only the agency that compiled the report may release its contents.
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A law requiring that applicants for a credit service be forewarned any time a credit report is requested. The applicant must also be given the name and address of the agency reporting any negative information.
Fair Credit Reporting Act (FCRA)
United States federal or state law that regulates the keeping and protecting of consumer credit reports by credit reporting agencies (e.g., acting fairly, impartially, and confidentially). It allows the consumer to see and correct his or her credit report. The federal FCRA was enacted in 1970.
Fair hearing
In the Medicare program, this stage of appeal of a claim has been renamed and is now called reconsideration . See reconsideration .
Fair Labor Standards Act (FLSA) of 1938
A law that established a national, hourly minimum wage and promulgated eligibility rules for overtime pay. The Wage and Hour Division of the U.S. Department of Labor administers the law, and virtually all wage and hour claims cite a violation of the FSLA. Wage and hour claims allege that workers classified by employers as “exempt” (and therefore ineligible for overtime pay), are in fact, entitled to overtime pay. Wage and hour claims are a serious exposure for employers; a number of class action wage and hour claims have settled for more than $10 million.
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A law that established a national, hourly minimum wage and promulgated eligibility rules for overtime pay. The Wage and Hour Division of the U.S. Department of Labor administers the law, and virtually all wage and hour claims cite a violation of the FSLA. Wage and hour claims allege that workers classified by employers as “exempt” (and therefore ineligible for overtime pay), are in fact, entitled to overtime pay. Wage and hour claims are a serious exposure for employers a number of class action wage and hour claims have settled for more than $10 million.
Fair market value
Price at which a buyer and seller, under no compulsion to buy or sell, will trade.
FAIR plan
An acronym for Fair Access to Insurance Requirements, these plans have been established in many states to make fire and extended coverage (and homeowners in some states) available in areas otherwise not addressed by the voluntary market.
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Fair access to Insurance requirements. Pool maintained by private Insured by the Government that makes certain types of property Insurance available in inner-city or other high risk areas where such Insurance cannot be obtained through the voluntary Insurance market.