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F


FINRA (Financial Industry Regulatory Authority)
Formerly known as NASD (National Association of Securities Dealers), FINRA is a nonprofit membership organization registered with the Securities and Exchange Commission (SEC) under the provisions of the Securities Exchange Act of 1934.  Membership is limited and consists mostly of broker dealers and investment banking houses.  Basic goals of the FINRA are to: Promote just and equitable principles of trade for the protection of investors; Adopt, oversee, and enforce rules of fair practice; Consult with government and investors on matters of common concern; Conduct periodic examinations and audits to ensure solvency and financial integrity among members.  FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services.


Face Amount

The amount stated on the face of a traditional life insurance certificate that will be paid in case of death. The actual death benefit may be greater or smaller than the face amount, due to adjustments for unpaid certificate loans or premiums, as well as additional insurance purchased through dividends or other benefits.  


Fixed annuity
  
An annuity having a minimum interest rate guaranteed by the company. The annuity is backed by secure investment vehicles such as corporate, government, and Agency bonds.  


Fixed-income fund
  
A mutual fund that invests in bonds and other fixed-income securities to provide shareholders with current income and to preserve capital.  


Fixed-income securities
  
Securities that pay a specific interest rate, such as bonds, money market instruments and preferred stock.  


Flat extra premium
  
A means of charging extra premium for a substandard risk expressed in terms of an additional charge per thousand of face amount of insurance for a specific period of time -- for example, an additional $2.50 per thousand of face amount for a stated number of years.  


Flexible income option (FIO)
  
Available only on qualified plans. If the annuitant is age 59 1/2 or greater, he or she may receive the required minimum distribution by utilizing the FIO. Each year the minimum distribution amount will be calculated based on the annuitant’s life expectancy.  


Flexible premium adjustable life insurance
  
This is the plan description for Modern Woodmen’s universal life insurance product as stated on the application.


Flexible premium certificate
  
A life or annuity certificate with premium payment levels determined by the certificate holder, within limits.  


Flexible premium retirement annuity
  
An annuity certificate having flexible premium payments during the accumulation period. This is often abbreviated as either FPRA or FPDA (Flexible Premium Deferred Annuity).  


Forced distribution
  
This occurs in life or annuity certificates any time the certificate owner is required to take a cash distribution from the certificate. This usually results due to a tax law.  


FPDA
  
Flexible premium deferred annuity.  


Fraternal Benefit Society
   
Fraternal benefit societies are not-for-profit membership organizations with a representative form of governance providing more than 10 million Americans with insurance and other financial products, along with fraternal benefits, such as scholarships, educational publications and discount programs. Members gather in local chapters and receive financial and material support to enhance their communities through social outreach and grassroots volunteering. Operating in America for more than 150 years, fraternal benefit societies have positively impacted our nation. 


Free look period
  
A period of time following delivery of a new life insurance or annuity certificate during which the certificate owner can return the certificate to the company for a full refund of premiums paid. The free look period varies by state and is stated in your contract.

 


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