Glossary of Insurance Terms
- Face amount
The amount stated on the insurance policy that will be paid in case of death or at maturity. It does not include dividend additions or additional amounts payable under other special provisions.
The traditional health care payment system (also known as indemnity insurance) under which physicians and other providers receive a payment that does not exceed their billed charge for each unit of service provided. Under a fee-for-service insurance plan, insureds usually may choose to go to any provider they want, as long as the provider is willing to accept the insurance company's payments.
- Financial responsibility law
A law in some states under which a person involved in an automobile accident may be required to furnish security up to certain minimum dollar limits. Wisconsin has a financial responsibility law.
- Fiscal intermediary
A private insurance company that has contracted with Medicare to process bills (claims) for Part A services.
Coverage for property that moves from location to location either on a scheduled or unscheduled basis. If the floater covers scheduled property, coverage is listed for each item. If a floater covers unscheduled property, all property is covered for the same limits of insurance.
(See Drug formulary)