Glossary

Funded retention refers to a risk financing program under which an organization sets funds aside in advance to pay for losses that have been retained by the organization, rather than transferred to an insurer or another party.

Funded self-insurance is a more formalized approach to self-insurance involving the creation of an earmarked asset account to match loss reserves. It is distinguished from "unfunded" or "pay-as-you-go" self-insurance.

Funds control is an arrangement employing an independent third party to disburse the construction funds to the various trade contractors and suppliers on a given project, often mistakenly believed to be a viable alternative guarantee to a contract bond. Marshaling the contract funds and disbursing them pursuant to approved payment requests mitigates the possibility of a payment bond type claim. It does not, however, guarantee that the project will be built per plans, on time, within budget, and that all bills will be paid.

Funds withheld refers to a provision in a reinsurance treaty under which some or all of the premium due to the reinsurer, usually an unauthorized reinsurer, is not paid but rather is withheld by the ceding company either to enable the ceding company to reduce the provision for unauthorized reinsurance in its statutory statement or to be on deposit in a loss escrow account for purposes of paying claims. This enables the ceding company to either reduce the provision for unauthorized reinsurance in its statutory statement or for funds to be on deposit in a loss escrow account for purposes of paying claims. The reinsurer's asset, in lieu of cash, is "funds held by or deposited with reinsured companies."

A furriers block policy is an inland marine insurance covering the inventory of a fur dealer.

Furriers customers insurance is inland marine insurance covering furs that are stored by the insured fur dealer.

A future is an agreement traded on a futures exchange, to make, take delivery of, or effect a cash settlement based on the actual or expected price, level, performance, or value of one or more underlying interests.

A futures contract is an agreement made by a seller to deliver a stated amount of product to a buyer at a future date for an agreed price.

A factory mutual is a mutual insurance company organized for the purpose of insuring manufacturing businesses and industries. It refers to a group of insurance companies that provide property insurance and other risk management services (i.e., risk engineering services and loss-prevention standards designed to protect facilities, equipment, and business operations), focusing on risks associated with manufacturing processes. This includes fire and other property losses as well as equipment damages, business interruptions, and natural disasters. The term is commonly associated with FM Global.

A farm mutual is a member-owned, state-regulated mutual insurance company that operates under specific state law to serve its members' insurance needs. Often with roots in local or agricultural communities, farm mutuals were originally established to provide insurance coverage for farmers, agricultural property, and rural communities. Rather than being distributed to shareholders, any profits are typically returned to policyholders through dividends, reduced premiums, or enhanced services. Farm mutuals have expanded to also offer coverage for homes, businesses, automobiles, and other property risks beyond traditional farming operations.