F - GLOSSARY - Face Amount: The amount of money payable to a beneficiary upon the insured's death or at the policy's maturity. - Facultative Reinsurance: A type of reinsurance for individual risks that allows the reinsurer to accept or reject each risk. - Fidelity Bond: A form of insurance protection that covers policyholders for losses incurred as a result of fraudulent acts by specified individuals. - First-Dollar Coverage: An insurance policy feature where the insurer covers the insured from the first dollar of loss, without a deductible. - Flat Rate: A fixed premium rate applied to an insurance policy, not subject to variation due to changes in the risk's characteristics. - Floater: An insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do. - Fraternal Benefit Society: A non-profit organization that provides insurance benefits to its members, often based on common interests or affiliations. - Fronting: An arrangement where a licensed insurer issues a policy but transfers the risk to another insurer or reinsurer. - Functional Replacement Cost: The cost to replace damaged property with a functionally equivalent item, rather than an identical one, often used in older buildings. - Future Purchase Option: A provision in some insurance policies that allows the policyholder to purchase additional coverage at specified times without evidence of insurability.