Face Amount

The amount of insurance provided by the terms of an insurance contract, usually found on the face of the policy. In a Life Insurance policy, the death benefit.


Facultative reinsurance means reinsurance of individual risks by offer and acceptance wherein the reinsurer retains the “faculty” to accept or reject each risk offered.

Federal Deposit Insurance Corporation (FDIC)

An agency of the federal government which insures bank deposits up to a stated maximum.

Federal Insurance Administration

A government office, part of HUD, which oversees the handling of FAIR plans, Federal Crime Insurance plans, and the Flood program.

Federal Savings and Loan Insurance Corporation

A United States government instrumentality that insures share accounts in savings and loans and similar institutions up to a maximum per account.

Fictitious Groups

Groups formed primarily for the purpose of buying insurance. Under the law such groups may not be underwritten.


A person holding the funds or property of another in a position of trust. An example would be the executor of an estate.


See Field Force. A type or line of insurance as "in the Life Insurance field." (3) An area or territory covered by an agent, agency, or insurer.

Field Force

The agents and supervisory personnel of insurers who operate away from the home office in the branch offices and agencies of the company.

Financial Reinsurance

A form of reinsurance which considers the time value of money and has loss containment provisions. One of its objectives is the enhancement of the cedant’s financial statements or operating ratios, e.g., the combined ratio; loss portfolio transfers; and financial quota shares are examples.

Fine Print

A reference to imaginary small type in a policy contract supposedly containing exclusions, reductions, exemptions, and limitations of coverage. Most state laws include 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.

Fire Mark

An insignia, generally metal, once placed on buildings insured by the insurer represented by the mark. Since the insurers had their own fire brigades, they had to check the mark on a burning building to determine whether or not they should extinguish the fire.

"First" Named Insured

The first named insured appearing on a commercial policy. The latest forms permit the insurer to satisfy contractual duties by giving notice to the "first" named insured rather than requiring notice to all named insureds.

First Loss Insurance

Popularly used, an insurance policy which is called upon to pay a loss before others covering the same risk. A contract written in such an amount as to cover only an insured's expected loss during the policy period with no other insurance in existence.

First Party Insurance

Insurance which applies to coverage for the insured's own property or person. Contrast with Third Party Insurance.

First Year

The term used to refer to various matters during the first year a policy is in force, such as first year premiums and first year claims.

First Year Commission

The commission paid on the first year's premium.

Foreign Insurer

An insurer domiciled in a state of the United States other than the one in which the insured's insurance is written.