Rick Debe Insurance Agency - DBI Insurance Services
(262) 363-8650
Office Hours: M - Th 8:30 - 5:30 Friday 8:30 - 3:00

We've listed all the relevant insurance terminology we could think of...and then some!  If you don't find what you're looking for, just send us an email with your question and we'll get right back to you with the answer!


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Face Amount

The amount stated on the insurance policy that will be paid in case of death or at maturity. It does not include dividend additions or additional amounts payable under other special provisions.

Facultative Reinsurance

A reinsurance policy that provides an insurer with coverage for specific individual risks that are unusual or so large that they aren't covered in the insurance company's reinsurance treaties. An example would be policies for jumbo jets or oil rigs.

Fair Access to Insurance Requirements Plans

Insurance pools that sell property insurance to people who can't buy it in the voluntary market because of high risk over which they may have no control. FAIR Plans, which exist in 28 states and the District of Columbia, insure fire, vandalism, riot, and windstorm losses, and some sell homeowners insurance which includes liability. Plans vary by state, but all require property insurers licensed in a state to participate in the pool and share in the profits and losses.

Farmowners/Ranchowners Insurance

It is a packaged policy that protects the policyholder against named perils and liabilities and usually covers homes and their contents, along with barns, stables, and other structures.

Federal Funds

Reserve balances that depository institutions lend each other, usually on an overnight basis. In addition, Federal funds include certain other kinds of borrowings by depository institutions from each other and from federal agencies.

Federal Reserve Board

Seven-member board that supervises the banking system by issuing regulations controlling bank holding companies and federal laws over the banking industry. It also controls and oversees the U.S. monetary system and credit supply.


The traditional health care payment system (also known as indemnity insurance) under which physicians and other providers receive a payment that does not exceed their billed charge for each unit of service provided. Under a fee-for-service insurance plan, insureds usually may choose to go to any provider they want, as long as the provider is willing to accept the insurance company's payments.

Fidelity Bond

A form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It insures a business for losses caused by the dishonest acts of its employees.

Fiduciary Bond

A type of surety bond, sometimes called a probate bond, which is required of certain fiduciaries, such as executors and trustees, that guarantees the performance of their responsibilities.

Fiduciary Liability

Legal responsibility of a fiduciary to safeguard assets of beneficiaries. Fiduciary liability insurance covers the breaches of managers or in another work a fiduciary, duties such as misstatements or misleading statements, errors and omissions.

File-And-Use States

States where insurers must file rate changes with their regulators, but don't have to wait for approval to put them into effect.

Financial Guarantee Insurance

Covers losses from specific financial transactions and guarantees that investors in debt instruments, such as municipal bonds, receive timely payment of principal and interest if there is a default. 

Financial Responsibility Law 

A law in some states under which a person involved in an automobile accident may be required to furnish security up to certain minimum dollar limits. Wisconsin has a financial responsibility law.

Finite Risk Reinsurance

Contract under which the ultimate liability of the reinsurer is capped and on which anticipated investment income is expressly acknowledged as an underwriting component. This also known as Financial Reinsurance because this type of coverage is often bought to improve the balance sheet effects of statutory accounting principles.

Fire Insurance

Coverage protecting property against losses caused by a fire or lightning that is usually included in homeowners or commercial multiple peril policies.

First-Party Coverage

Coverage for the policyholder's own property or person.

Fiscal Intermediary 

A private insurance company that has contracted with Medicare to process bills (claims) for Part-A services.

Fixed Annuity

An annuity that guarantees a specific rate of return. During the return phase, their will be a guaranteed fixed amount of income that will be paid on a regular schedule.


Coverage for property that moves from location to location either on a scheduled or unscheduled basis. If the floater covers scheduled property, coverage is listed for each item. If a floater covers unscheduled property, all property is covered for the same limits of insurance.

Flood Insurance

Coverage for flood damage is available from the federal government under the National Flood Insurance Program but is sold by licensed insurance agents. Flood coverage is excluded under homeowners policies and many commercial property policies. However, flood damage is covered under the comprehensive portion of an auto insurance policy.

Forced Place Insurance

Insurance purchased by a bank or creditor on an uninsured debtor's behalf so if the property is damaged, funding is available to repair it.

Foreign Insurance Company

Name given to an insurance company based in one state by the other states in which it does business.


(See Drug formulary)


Intentional lying or concealment by policyholders to obtain payment of an insurance claim that would otherwise not be paid, or lying or misrepresentation by the insurance company managers, employees, agents, and brokers for financial gain.

Free Look Period

The period of time after the delivery of an insurance policy when you can review the policy. If you change your mind about keeping the policy during this time period, you can cancel the policy and get your initial premium back.


A procedure in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission.


Agreement to buy a security for a set price at a certain date the contracts usually involve commodities, indexes or financial futures.


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