FACILITY - A pooling agreement between all automobile insurers (now replaced in most provinces by the Facility Association) in which a market is guaranteed for all licensed drivers and registered owners. The results of the total industry pool are shared by all members of the agreement.
FACILITY ASSOCIATION - The organization that ensures that anyone who is required to have car insurance has access to it. For more information about the important role of Facility Association in the insurance market, please visit its website at www.facilityassociation.com
FAIR MARKET VALUE - Price at which a buyer and seller, under no compulsion to buy or sell, will trade.
FARM MUTUAL - A mutual insurance company whose owning policyholders are predominately farmers.
FAULT DETERMINATION RULES - In Quebec, New Brunswick and Ontario, charts or rules are used to determine fault or responsibility for Direct Compensation - Property Damage claims, but not for injury claims in cases of car collisions. In some other jurisdictions, insurers use inter-company "settlement" charts for handling claims against each other; these are not legally binding on the policyholder, however. The circumstances of a collision may show that more than one driver was negligent. Each driver's insurance company may then become involved in the settlement based on the degree of responsibility attributed to each person. If there is a dispute about responsibility, court action may be required to resolve it.
FIRE DAMAGE - Damage caused by fire.
FIRE INSURANCE - Coverage for losses from fire and lightning and also the resultant damage caused by smoke and water. Usually supplemented by Extended Coverage Insurance.
FIRE-RESISTIVE CONSTRUCTION - A building that has its exterior walls, floors and roof constructed of masonry or other fire-resistive materials.
FIRST PARTY - The person who is insured on the insurance policy. He or she is also the "policyholder" or "insured." There may be other people, named or unnamed, who are covered as well.
FIXTURES - Anything that is attached to real property is known as a "fixture." Fixtures when permanently attached to real property become part of the real property. Tenant's fixtures are fixtures of a removable nature and are the responsibility of the tenant for insurance purposes. Whether a fixture is a tenant's fixture and movable or a landlord's fixture and immovable is frequently determined by the purpose of the fixture. A more accurate guide is generally found, however, in the lease itself or in an agreement between the landlord and tenant at the time of installation of the fixture. The tenant may have an insurable interest in permanent fixtures particularly where the lease has some time to run during which the tenant would have the use of these fixtures.
FLAT CANCELLATION - The cancellation of a policy as of the effective date with all paid premium refunded.
FLEET POLICY - In automobile insurance, this is a policy insuring a number of cars for one owner.
FLOATER - Additional coverage for movable items, like jewellery or antiques, beyond what's included in the basic homeowner policy. Also called a "rider" or "endorsement".
FORGERY - In general, any false writing with intent to defraud.
FORM - An insurance policy itself or riders and endorsements attached to it.
FRAUD - 1) Methods used to deceive to cause unwarranted favourable decision for one's own benefit. 2) Deliberate misrepresentation or misstatement. 3) Concealment of facts which should at the time be made known.
FRAUDULENT MISREPRESENTATION - A false statement made knowing it to be false and intending another to act on it to his detriment, or made carelessly or recklessly without regard to whether it is true or false. In insurance it is most frequently found in the intentional misrepresentation of a risk to obtain insurance or in proof of loss after the loss occurs.
FRIENDLY FIRE - A fire confined to the place it is supposed to be, e.g., in the fireplace; in the incinerator