Glossary

A floater policy is an inland marine property insurance policy that covers personal property wherever it may be within the policy territory.

A floating excess policy applies its limits in excess of more than a single primary policy. Floating excess forms are most commonly written to apply excess of an insured company's primary directors and officers (D&O), employment practices, and fiduciary liability policies. In effect, its limits are available to "float" between and among the limits provided under these (and other) types of primary policies when they are exhausted by claim payments. In the event that one or more claims exceed these primary/underlying limits, the limit of the floating excess policy can be applied in any combination—up to the floating excess policy's limit—to one or more losses. Floating excess policy forms are nearly always written on a "straight" excess basis, whereby they follow the wording of the underlying policies and, therefore, do not "drop down" (i.e., provide broader coverage) in the event that a particular claim is not covered/excluded by the primary form.

Flood coverage is insurance for damage to property caused by a flood. May be available by endorsement to an all risks policy or to a difference-in-conditions (DIC) policy. Normally, the coverage provided is subject to a per occurrence sublimit, an annual aggregate limit, and a separate deductible. Coverage may also be available from the National Flood Insurance Program (NFIP) or through the Insurance Services Office, Inc. (ISO), commercial or personal flood insurance program.

A flood exclusion is a provision found in nearly all property insurance policies (even in all risks policies) eliminating coverage for damage by flood. It is usually called the water exclusion and usually also eliminates coverage for some other types of water damage, such as seepage and sewer backup.

The flood insurance rate map is the official flood insurance map of a community on which the Federal Emergency Management Agency (FEMA) has indicated both the special flood hazard areas and the risk premium zones for the designated community. It is the most common map that FEMA produces and used by a variety of parties. Insurance agents and insurers use the FIRM to determine the extent of the flood risk faced by properties and buildings. Community officials use the FIRM to administer floodplain management regulations and to mitigate the loss exposure to floods. Lending institutions and federal government entities use the FIRM to locate properties and buildings in relation to mapped flood hazards and to ascertain whether flood insurance is required when making loans or providing grants to rebuild structures following a disaster.

A floor is an agreement obligating the seller to make payments to the buyer in which each payment is based on the amount by which a predetermined number, sometimes called the floor rate or price, exceeds a reference price, level, performance, or value of one or more underlying interests.

Fluvial flooding is the overflow of water from lakes and rivers.

Following the fortunes is the clause in a reinsurance contract stating that it is the reinsurer's duty to "follow the fortunes" of the insured as if the reinsurer were a party to the original insurance.

Follow form is when an umbrella policy provision follows the underlying policy as to how the provision applies. Follow form also identifies an "excess" liability policy that follows the underlying policies for most policy provisions. The policy may stand alone for certain exclusions, conditions, etc. while relating back to the underlying coverage for most provisions. This type of policy form is typically used excess of scheduled underlying insurance and usually contains a requirement that the insured maintain scheduled underlying insurance.

A follow form professional liability endorsement in an umbrella liability policy indicates that coverage applies under the same basis as in the underlying professional liability policy. In recent years, however, such endorsements are becoming increasingly difficult to obtain and are very unusual. This is because few umbrella insurers are also willing to assume the types of risks that professional liability policies cover.