Glossary

Friable asbestos is any material containing more than 1 percent asbestos that can be crumbled or reduced to powder by hand pressure.

A friendly fire is an intentionally kindled fire that remains within its intended confines, such as in a furnace or fireplace.

Fronting refers to the use of a licensed, admitted insurer to issue an insurance policy on behalf of a self-insured organization or captive insurer without the intention of transferring any of the risk. The risk of loss is retained by the self-insured or captive insurer with an indemnity or reinsurance agreement. However, the fronting company (insurer) assumes a credit risk since it would be required to honor the obligations imposed by the policy if the self-insurer or captive failed to indemnify it. Fronting companies charge a fee for this service, generally between 5 and 10 percent of the premium being written. Fronting arrangements allow captives and self-insurers to comply with financial responsibility laws imposed by many states that require evidence of coverage written by an admitted insurer, such as for automobile liability and workers compensation insurance. Fronting arrangements may also be used in business contracts with other organizations, such as leases and construction contracts, where evidence of coverage through an admitted insurer is also required.

A front company is an insurer that issues a policy and cedes all or a substantial part of the risk to another insurer.

Front pay consists of damages claimed by a former employee representing future wages and benefits that would have been paid had the former employee not been terminated or had the employee not been forced to resign.

The Fujita scale is for rating tornado intensity and is based principally on the damage done to structures and trees.

Full-timers coverage is found in motor home insurance policies, providing personal liability and medical payments coverage.

Fully insured status describes the highest covered status under the Social Security benefits under the Old Age, Survivors, Disability, and Health Insurance (OASDHI) Act, entitling the worker to all types of benefits, including retirement.

A fully paid policy is a life insurance policy on which all of the premiums necessary to obtain the benefits have been paid.

Full coverage is any form of insurance that provides for payment in full (e.g., without a deductible or coinsurance limitation) of all losses caused by the perils insured against.