FORMS OF INSURANCE - Insurance can be mandatory or voluntary. Mandatory insurance is established or canceled by laws of Ukraine. Currently, there are 27 types of mandatory insurance, including medical insurance, insurance for military personnel and employees of other security forces, customs and tax services, passengers on transportation, employees of various high-risk professions, insurance of agricultural crop yield in state enterprises, aviation insurance, and civil liability insurance for vehicle owners. More than 3/4 of the total insurance consists of voluntary insurance, which is carried out based on an agreement between the insurer and the policyholder. The conditions and procedures for voluntary insurance are determined by the insurance rules developed by the insurer.

FORCE MAJEURE - a) Extraordinary events or situations that cannot be foreseen, prevented, or eliminated by any means; b) Extraordinary circumstances specified in insurance rules, for which the insurer is released from fulfilling obligations under the insurance contract. Most insurers consider events resulting from military actions, strikes, the declaration of a state of emergency, radioactive emissions, etc., as force majeure.

FRANCHISE - a contractual provision where a portion of the losses is not compensated by the insurer in the event of an insurance claim. There are conditional and unconditional franchises. A conditional franchise entitles the insurer to be exempt from liability for damages if their amount does not exceed the franchise, and the loss is fully compensated if its amount exceeds the franchise. An unconditional franchise means that the liability of the insurer is determined by the amount of the loss minus the franchise.

FUNCTIONS OF INSURANCE - the manifestations of the essence of insurance in action. Insurance performs the following functions: risk coverage, creation and use of insurance reserves, savings of funds, and preventive functions.

FACULTATIVE REINSURANCE - a method of reinsurance in which the insurer does not bear any liability to the reinsurer for transferring risks to reinsurance. The decision of whether to transfer the risk to reinsurance and to what extent is made by the cedent. In turn, the reinsurer has no obligations to the insurer regarding accepting risks on its own responsibility. The main disadvantage of facultative reinsurance is the lack of confidence for the insurer in placing the risk in reinsurance, as well as the significant time and effort required to arrange facultative reinsurance contracts.

FACULTATIVE OBLIGATORY TREATY - a form of reinsurance contract in which the cedent does not have the right to choose whether to transfer the risk to reinsurance or not. Similarly, the reinsurer does not have the right to refuse the reinsurance of a proposed risk.

FACULTATIVE TREATY - A specific risk reinsurance contract entered into on a voluntary basis.

FINANCIAL MARKET - the market for credits and securities, including stocks, bonds, and other financial instruments. The insurance market is also a component of the financial market.

FIRE INSURANCE - one of the oldest and traditional types of property insurance that provides compensation in the event of damage caused to property by fire, lightning, explosion, and other causes leading to a fire. Additional coverage for damages caused by earthquakes, storms, hail, and other natural disasters, as well as water damage, can be included in the scope of liability for an additional premium.

FREIGHT INSURANCE - it can be carried out by either the shipowner or the cargo owner. If the shipowner has an interest in freight insurance, it is simultaneously realized with the insurance of the vessel through an additional agreement to the vessel insurance policy. When the cargo owner is more interested in freight insurance, it is arranged in the same manner as cargo insurance.