Glossary

401(k) plans are the most common type of defined contribution retirement plan, in which employees choose to defer part of their pre-tax compensation.

401(k) fee claims allege that the individuals responsible for administering a company's 401(k) retirement plan have allowed the plan's service providers to charge excessive fees.

A face amount means the amount of insurance provided.

A facility emergency coordinator is the representative of a facility covered by environmental law, such as a chemical plant, who participates in the emergency reporting process with the Local Emergency Planning Committee (LEPC).

Facultative automatic is a form of property and casualty (P&C) reinsurance that is a hybrid between facultative and treaty.

A facultative obligatory treaty is the hybrid between the facultative versus treaty approach.

Traditional facultative reinsurance is a form of reinsurance whereby each exposure the ceding company wishes to reinsure is offered to the reinsurer and is contained in a single transaction. The submission, acceptance, and resulting agreement is required on each individual risk or portion of an individual risk that the ceding company seeks to reinsure. That is, the ceding company negotiates an individual reinsurance agreement for every policy it will reinsure. However, the reinsurer is not obliged to accept every or any submission.

A failure to collect contributions exclusion is a standard exclusion in fiduciary liability policies that precludes coverage for claims caused by a fiduciary's failure to collect contributions owed to a pension or benefit plan.

A failure to fund in accordance with ERISA exclusion is a standard exclusion in fiduciary liability policies that precludes coverage for claims alleging failure to fund in accordance with the guidelines prescribed by the Employee Retirement Income Security Act (ERISA).

A failure to insure exclusion is found primarily in directors and officers (D&O) liability policies and, to a lesser extent, in public officials liability policies.