Glossary

The first named insured is the person or entity listed first on the policy declarations page as an insured.This primary or first named insured is granted certain rights and responsibilities that do not apply to the policy's other named or additional insureds.

The sharing of risk by a reinsurer with the ceding company on a pro rata basis, excess of a specific retention.

Fixed-cost insurance is a traditional insurance program where the insured is charged a fixed premium rate.

The fixed amount option is an option that a life insurance beneficiary may select as a settlement, whereby the policy proceeds are paid through periodic installments of fixed amounts until the principal and interest are exhausted.

A fixed benefit is a benefit from a life or annuity insurance policy that does not vary in amount and is paid on a regular periodic basis.

A fixed period annuity refers to an annuity policy that makes income payments for a limited period of time (e.g., 5 years).

The fixed period option is a life insurance option that may be selected as a settlement under which the policy proceeds are left on deposit with the insurer to accrue interest and are paid to the beneficiary in equal payments for a specific number of years.

Flat refers to a premium quoted without interest, service, additional charges, or adjustments.

Flat cancellation is the cancellation of an insurance policy or bond as of its effective date, and before the insurer has assumed liability.

A flat commission is one with a fixed rate.