Glossary

A fee schedule is a cost-containment tool utilized in workers compensation to standardize and avoid excessive medical costs associated with claims. Fee schedules are published by most states and set down the maximum charges for various medical procedures. Medical providers are free to charge less than the maximum, and in many jurisdictions, the provider may charge more than the maximum when it can be justified.

A Fellowship of the Chartered Insurance Institute is a professional designation, established in the United Kingdom, awarded to the holders of the Associateship of the Chartered Insurance Institute (ACII) who have accomplished additional achievements. Examples of achievements include a dissertation, a groundbreaking work project, or a body of published work. The Chartered Insurance Institute (CII) administers the FCII program.

Fellow employee coverage is an endorsement to the business auto policy (BAP) that provides coverage for claims made by an injured employee against a fellow employee who caused or contributed to the injury. In 1999, the Insurance Services Office, Inc. (ISO), introduced two standard fellow employee coverage endorsements. The Fellow Employee Coverage endorsement (CA 20 55) removes the fellow employee exclusion entirely, while the Fellow Employee Coverage for Designated Employees/Positions endorsement (CA 20 56) does so only with respect to specified individuals, job titles, or positions.

The fellow employee exclusion is one in liability policies that eliminates insured status for an employee of the named insured organization with respect to injury that employee causes to another employee.

By endorsement to the general liability policy with fellow employee suits coverage, insureds can provide coverage for claims made by an injured employee against a fellow employee who caused or contributed to the injury. The Employee Bodily Injury to Another Employee endorsement restores insured status for specified employees (or classes of employees) against whom such a claim is made.

Fellow in Risk Management is a professional designation awarded to persons who have completed a 10-course program that includes the 3-course Associate in Risk Management (ARM) or Canadian Risk Management (CRM) program plus several other elective and required courses and a final examination. The FRM develops a foundation in law, accounting, finance, information systems, and specialties in risk management. RIMS administers the program.

A fictitious grouping law prohibits the making of groups solely for the purpose of purchasing insurance. FGLs prohibit or limit the sale of insurance to groups that do not have an official or legal status as a group. Many states have statutes dealing with "unfair practices" in the sale or purchase of insurance. Among other issues, these laws place limitations on the sale of insurance to groups without common ownership or a common group interest or purpose. Because a wrap-up insurance program entails the purchase of insurance by one entity for many separate and distinct entities, fictitious grouping laws can limit, preclude, or restrict the use of wrap-ups in a particular jurisdiction. These types of restrictions generally appear either in the unfair practices section of the jurisdiction's insurance statutes or in a section of the statutes called "fictitious grouping" laws. See, for example, Idaho Code Sect. Section 41–1317. FICTITIOUS GROUPS (1) No insurer, whether an authorized insurer or an unauthorized insurer, shall make available through any rating plan or form, property, casualty or surety insurance to any firm, corporation, or association of individuals, any preferred rate or premium based upon any fictitious grouping of such firm, corporation, or individuals. For the purposes of this section a "fictitious" group is one in which members of such group do not have a common insurable interest as to the subject of the insurance and the risk or risks insured or to be insured.

A fiduciary is defined by the Employee Retirement Income Security Act (ERISA) as individuals or corporations falling into three categories that focus on those who exercise discretionary control over certain benefit plans and those who render investment advice for compensation. Fiduciaries are (1) exercises any discretionary authority or discretionary control in managing a pension or benefit plan or exercises any authority or control in managing or disposing of its assets, (2) renders investment advice for a fee or other compensation, with respect to any monies or other property belonging to the plan, or (3) has any discretionary authority or responsibility in administering the plan. ERISA, which was passed in 1974, not only formalized the law associated with the administration of employee pension and benefit plans but also broadened the scope of such liability so that it became a "personal" rather than simply a "corporate" liability. The effect of this change was that soon after ERISA's enactment, insurance companies began offering fiduciary liability insurance policies, which were specifically designed to cover this newly legislated exposure.

A fiduciary bond guarantees that the individuals or legal entities appointed by the court to oversee the property of others will execute those appointed duties in good faith and be accountable for any deficits that may occur.

Fiduciary liability is the responsibility on trustees, employers, fiduciaries, professional administrators, and the plan itself with respect to errors and omissions (E&O) in the administration of employee benefit programs as imposed by the Employee Retirement Income Security Act (ERISA).