Face: The first page of a life insurance contract.

Face Amount: An amount stated on the face that will be paid in case of death or at the maturity of the policy.

Factory Mutual: Mutual insurance company insuring only properties that meet high underwriting standards.

Facultative Reinsurance: Type of reinsurance in which the reinsurer can accept or reject any risk presented by an insurance company seeking reinsurance.

Fair Rental Value: An amount payable to an insured homeowner for loss of rental income due to damage that makes the premises uninhabitable.

Family Expense Policy: A policy which insures the medical expenses of both the policyholder and immediate dependents.

Family Income Policy: A insurance policy that pays an income up to a specific period of time to the beneficiary after the death of the insured.

Family Policy: A life insurance policy providing insurance on all or several family members in one contract, generally whole life insurance on the principal breadwinner and smaller amounts of term insurance on the other spouse and children.

Farmowners-Ranchowners Policy: A package policy for a farm or a ranch, providing property and liability coverage's.

Federal Crop Insurance: A comprehensive coverage at rates subsidized by the federal government for unavoidable crop losses.

Federal Flood Insurance: A type or insurance sold by private insurers (with rates subsidized by the federal government) to persons who reside in flood zones and whose community joins the program and agrees to establish and enforce flood control and land-use measures.

Fidelity Bond: A bond that will reimburse an employer for losses caused by dishonest or fraudulent acts of employees.

Fiduciary: A person who holding the funds or property of another in trust.

Financial Responsibility Law: A state law which may require motorists to furnish evidence, either before or after involvement in an auto accident of ability to pay for damages up to certain minimum dollar limits.

Fire: Combustion accompanied by a flame or glow, which escapes normal confines to cause damage.

Fire Legal Liability: Liability of a business or a person for damage caused by negligence to property of others.

First Party Insurance: Insurance coverage which the policyholder collects compensation for losses from the insured's own insurer.

Fixed Annuity: Annuity whose periodic payment is a guaranteed fixed amount.

Fixed Period Installments: Life insurance settlement option in which the policy proceeds are paid out in fixed amounts.

Floater: An insurance policy that covers property that can be moved from one location to another for both transportation perils and perils affecting property at a fixed location.

Flood Insurance: Coverage against loss resulting from rising water.

Forfeitures: Amounts contributed on behalf of terminated, non-vested participants.

401(k) Plan: A salary reduction plan that allows employees to contribute a portion of their salaries on a tax-deferred basis.

Franchise Deductible: Deductible in which the insurer has no liability if the loss is under a certain amount, but once this amount is exceeded, the entire loss is paid in full.

Franchise Insurance: A type of insurance in which individual polices are issued to the employees of a common employer or the members of an association.

Fraternal Insurance: Insurance offered to a social organizations for their members.

Fund: Money held in trust to pay pension benefits.

Future Increase Option: An option that allows the insured to purchase additional disability income insurance at a specified future date without evidence of insurability.

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Garage Liability Insurance: Type of insurance that protects garage owners or automobile dealers for liabilities they may have in their business operations.

General Agency System: A type of life insurance marketing system in which the general agent is an independent businessperson who represents only one insurer.

General Average: In ocean marine insurance, a loss incurred for the common good that is shared by all parties to the venture.

General Liability Insurance: The insurance coverage that pertains to claims arising out of the insured's liability for injuries or damage caused by ownership of property, manufacturing operations, contracting operations, sale or distribution of products, and the operation of machinery, as well as professional services.

Glass Insurance: A commercial insurance policy used to insure plate glass, lettering, frames, and ornamentation.

Good Student Discount: The reduction of an automobile premium for a young driver who ranks in the upper percent of their class.

Grace Period: The specified period after a premium payment is due, in which the policyholder may make such payment, and during which the protection of the policy continues.

Gross Estate: All of the assets and liabilities owned at death.

Gross Negligence: Intentional failure to perform a duty, reckless disregard of the consequences as affecting the life or property of another

Gross Premium: Premium paid by the policyholder.

Group Annuity: A pension plan providing annuities at retirement to a group of people under a master contract.

Group Annuity Contract: A contract issued by a life insurance company that may be used as the funding instrument for benefits to be made in accordance with a pension plan. A master contract provides that the group of persons participating in the plan will receive annuities during retirement. Individual certificates stating coverage are usually issued to members of the group.

Group Contract: A contract of insurance made with an employer or other entity that covers a group of persons identified as individuals within an entity.

Group Health Insurance: Health insurance written on a number of people under a single master policy, issued to their employer or to an association with which they are affiliated.

Group Life Insurance: Life insurance usually without medical examination, on a group of people under a master policy.

Group Permanent Plan: A type of pension plan which cash value life insurance is issued on a group basis and cash values in each policy are used to pay retirement benefits when a worker retires.

Group Term Life Insurance: The most common form of group life insurance. Yearly renewable term insurance on employees during their working careers.

Guaranteed Renewable Contract: An insurance contract that the insured has the right to continue in force by the timely payment of premiums to a specified age. During this period of time the insurer has no right to make any change in any provision of the contract while the contract is in force, except that the insurer may make changes in premium rate by classes.

Guardian: A court appointed person who takes care of the affairs of another.

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Hail Insurance: Insurance against loss of crops from hail.

Hazard: A condition that creates or increases the chance of loss.

Health Insurance: Insurance against financial losses resulting from sickness or accidental bodily injury.

Health Insurance: Any insurance policy that provides payment for benefits of a covered sickness or injury. Included under this definition are various types of insurance such as: accident insurance, disability insurance, medical expense insurance, and accidental death and dismemberment insurance.

Health Maintenance Organization (HMO): An HMO is a prepaid medical service plan that provides a wide range of comprehensive health care services for a specified group (members) at a fixed periodic payment.

High-Risk Automobile Insurer: A insurance company that specializes in insuring motorists who have poor driving records.

Hold-Harmless Clause: A clause written into an insurance policy which one party agrees to release another party from any legal liability.

Homeowners Policy: A package policy providing home owners with a broad range of property and liability coverage's.

Hospice: A health care facility providing medical care and support services for terminally ill persons.

Hospital Expense Insurance: A health insurance policy that covers daily hospital room and board charges and some miscellaneous hospital expenses.

Hospital Miscellaneous Services: Any services other than room and board (and general nursing services) provided by a hospital during hospital confinement. Included are such items as: X- ray examinations, laboratory tests, medicines, surgical dressings, anesthetics (including the administration of), and use of operating room.

Hull Insurance: A class of ocean marine insurance that covers physical damage to the ship or vessel insured. Usually, written on an "all-risks" basis. Also can provide physical damage insurance on a aircraft, similar to collision insurance in an automobile policy.

Human Life Value: A method of determining Life insurance needs by taking into account a person's income, expenses, remaining years of earning, and the depreciation of money over time.

Hurricane: A tropical storm marked by extremely low pressure and circular winds with a velocity of 75 miles an hour or more.

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Immediate Annuity: An annuity providing payment to begin immediately.

Incontestable Clause: A clause which provides that the insurer may not contest the validity of the contract after it has been in force for a period of years.

Indemnification: The compensation to the victim of a loss, in whole or in part, by payment, repair, or replacement.

Independent Agent: An independent agent is a business person who represents two or more insurance companies in a sales and service capacity and who is paid on a commission basis.

Independent Agency System: The type of property and liability insurance marketing system, sometimes called the American agency system, in which the agent is an independent businessperson representing several companies.

Individual Contract: A contract of insurance made with an individual called the insured, which normally covers such individual and, in certain instances, members of their family.

Individual Deductible: The amount that an insured and each person of his or her family covered by the policy must pay before a group or individual medical insurance policy begins to pay for medical expenses.

Individual Insurance: An insurance policy which will provide protection to the policyholder and / or family.

Individual Retirement Account (IRA): A qualified account which an individual (under age 70) can make annual contributions of of earnings up to to a certain dollar limit.

Industrial Life Insurance: Life insurance issued in small amounts, usually less than $1,000, with premiums payable on a weekly or monthly basis.

Inflation-Guard Endorsement: Endorsement added to a homeowners policy to increase (periodically) the face amount of insurance of the dwelling and other policy coverage's by a specified percentage.

Initial Reserve: For life insurance, the reserve at the beginning of any policy year.

Inland Marine Insurance: A broad form of insurance, generally covering articles in transit as well as bridges, tunnels and other means of transportation and communication. Also covering goods in transit, excluding ocean voyages, it includes numerous "floater" policies, such as: personal effects, personal property, jewelry, furs, fine arts, and other items.

Innkeepers Legal Liability: A coverage for motel and hotel operators, protecting them from the legal liability they have for the property of guests.

In-Patient: A patient admitted to a hospital or other medical facility.

Insolvent: Not having sufficient financial resources to meet financial obligations.

Insurability: The accepting of the insurer an applicant for insurance.

Insurable Risk: The conditions that make a risk insurable are: (1) It must be accidental, (2) The loss must be defined, (3) The peril insured against must produce a definite loss and hardship not under the control of the insured, (4) There must be a large number of exposures subject to the same perils, (5) The loss must be calculable and the cost of insuring must be economically feasible, (6) The peril must be unlikely to affect all insureds simultaneously, and (7) The loss produced by a risk must be definite and have a potential to be financially serious.

Insurance: A system under which individuals, businesses, and other organizations or entities, in exchange for payment of a sum of money (called a premium), are guaranteed compensation for losses resulting from certain perils under specified conditions in a contract.

Insurance Company: An organization chartered to operate as an insurer.

Insurance Commissioner: The top insurance regulatory official in a state.

Insured: A person or organization, covered by an insurance policy, including the "named insured" and any other parties for whom protection is provided under the policy.

Insurer: The party to the insurance contract who promises to pay losses or benefits, or any corporation engaged primarily in the business of furnishing insurance to the public.

Insuring Agreement: The part of a insurance contract stating the promises of the insurer.

Insuring Clause: A clause which sets forth the type of loss being covered by the insurance policy and the parties to the insurance contract.

Interest: Money paid for the use of money.

Intestate: Dying without a will, thus allowing the probate court to appoint an administrator of the estate..

Investment Income: The portion of a company's income which is derived from its investments, including interest and dividends on stocks and bonds.

Irrevocable Beneficiary: Beneficiary designation allowing no change to be made in the beneficiary of an insurance policy without the consent of the named beneficiary.

Irrevocable Trust: A type of trust that cannot be revoked by the creator.

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Jettison: Act of throwing overboard part of a vessel's cargo or hull in hopes of saving a ship from sinking.

Jewelers Block Insurance: An all risk insurance contract that provides jewelers with coverage to losses which they would be exposed.

Joint and Several Liability: The legal principle that permits an injured party to recover the entire amount of compensation due for injuries regardless of the degree of that party's negligence.

Joint-and-Survivor Annuity: An annuity that provides income periodically, payable during the longer lifetime of two persons.

Joint Underwriting Association: A device used to provide insurance to those who cannot obtain insurance in the voluntary market. Certain companies issue policies at one rate level and handle claims, but the ultimate costs are shared by all companies writing insurance in that state.

Jumping Juvenile Insurance Policy: A life insurance policy purchased by parents for children under a specified age.

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