Glossary

A fiduciary liability endorsement for a bank can be added to the general liability policy. This endorsement provides general liability protection for the financial institution, its executive officers or employees, trust beneficiaries, and others as delineated in the endorsement for bodily injury (BI) or property damage (PD) liability arising out of the ownership, maintenance, or use of property in any trust for which the named insured is acting in a fiduciary or representative capacity. The fiduciary liability endorsement provides general liability protection for the financial institution, its executive officers or employees, trust beneficiaries, and others as delineated in the endorsement for bodily injury (BI) or property damage (PD) liability arising out of the ownership, maintenance, or use of property in any trust for which the named insured is acting in a fiduciary or representative capacity. Trust accounts may possess property from which liability exposures arise, and the financial institution has a liability exposure arising from this property due to its control of the property. The endorsement extends the financial institution's general liability policy to provide coverage for these liability exposures. Certain policy provisions and exclusions are altered slightly in order to remain applicable to the insured trust.

Fiduciary liability "follow-on" claims are litigation instituted by 401(k) plan participants (sometimes called "tag-along" claims) against the directors and officers of corporations who are also defendants in securities class action lawsuits.

A field adjuster is an insurance claims professional who investigates losses or damages. This typically involves visiting the site of an incident, gathering evidence, interviewing involved parties, assessing the extent of the loss, and determining coverage and claim value. Field adjusters work directly with policyholders, contractors, and other stakeholders to support the fair and timely resolution of insurance claims.

Field service advice is information provided by the Internal Revenue Service (IRS) to field agents to guide them in conduct of tax audits. The IRS also issues the Technical Advice Memorandum (TAM).

Filed forms are insurance policies that have been approved by the state insurance department and that are required in a state where the risk is located for certain types of coverage.

Financed insurance refers to the payment of life insurance premiums with borrowed funds, usually from the cash value of the contract.

The Financial Accounting Standards Board is an independent body, funded by accounting firms, that sets standards that must be followed when preparing financial statements and reports.

The Financial Anti-Terrorism Act (FATA or PATRIOT Act) of 2001 imposes record-keeping and government reporting requirements on banks, certain other financial institutions, and nonfinancial businesses for specified financial transactions and customer financial records. It was added to the Bank Secrecy Act as an attempt to help combat terrorism and money laundering. The International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 is Title III of the USA PATRIOT Act of 2001.

The financial capacity is the financial limit of an organization's ability to absorb losses with its own funds or borrowed funds without major disruption. This value often comes into play when a risk manager attempts to find the appropriate retention amount. Any planned retention figures should fall below the financial capacity point.

Financial consolidation refers to the process of combining the financial results of a subsidiary company with its shareholder, resulting in the elimination of intercompany accounting entries (transactions between affiliates offset each other).