Glossary

A flat dividend is a policyholder dividend paid to the insured as a flat percentage of the premium, which is usually between 5 and 15 percent.

A flat rate is a fixed rate not subject to adjustment, regardless of loss experience or changes in exposure during the term of coverage.

Used for classifying commercial vehicles under the business auto policy (BAP); five or more automobiles is a fleet.

Fleet automatic, in automobile insurance, provides physical damage coverage automatically to all newly acquired automobiles owned by the insured.

A fleet of companies refers to a number of insurance companies under the same management.

A fleet policy is an insurance contract applying to a number of vehicles, usually with the requirement that they be under common ownership.

The fleet policy for aircraft typically affords both liability and hull coverages.

A floater policy is an inland marine property insurance policy that covers personal property wherever it may be within the policy territory.

A floating excess policy applies its limits in excess of more than a single primary policy.

Flood coverage is insurance for damage to property caused by a flood.