- Radius of Operation: Used to
determine rates for automobiles owned by a business.
|
- Rate: The pricing factor upon
which an insurance premium is based.
|
- Reasonable and Customary Charge:
A charge for health care, which is consistent with the going
rate or charge in a certain geographical area, for identical
or similar services.
|
- Rebating: Giving any valuable
consideration (commission) to a prospect or insured as an
inducement to buy.
|
- Recurring Clause: A provision
in health insurance policies, which specifies a period of
time during which the recurrence of a condition is considered
a continuation of a prior period of disability or hospital
confinement.
|
- Reduced Paid-up Insurance: Provides
for continuation of the original insurance plan, but for
a reduced amount.
|
- Rehabilitation: Two meanings
here: (1) Restoration of a totally disabled person to a
occupation, or (2) a provision in a long term disability
policy that provides for continuation of benefits or other
financial assistance while a totally disabled insured is
retraining or attempting to resume employment.
|
- Reimbursement: Payment of the
expenses actually incurred as a loss covered by the policy.
|
- Reinstatement: The resumption
of coverage under a insurance policy which lapsed.
|
- Reinsurance: The acceptance
by one or more insurers of a portion of the risk underwritten
by another insurer.
|
- Renewable Term Insurance: Term
insurance which can be renewed at the end of the term, at
the option of the policyholder.
|
- Renewal: A continuance of insurance
under a policy beyond its original term by the insurer's
acceptance of the premium for a new policy term.
|
- Rental Insurance: A type of
insurance that includes coverage similar to a homeowners
policy to cover the personal property of a renter or tenant
in a building.
|
- Replacement: The substitution
of insurance coverage from one policy contract to another.
|
- Replacement Cost: The cost to
repair or replace property without considering depreciation.
|
- Representation: Statements made
by an applicant in the application, which represents as
being true to the best of his knowledge and belief, but
which are not warranted as exact in every detail.
|
- Rescission: Termination of an
insurance contract by the insurer on the grounds of material
misstatement on the application for insurance.
|
- Reserve: The amount required
to be carried as a liability in the financial statement
of an insurer, a sum set aside by an insurance company as
a liability to fulfill future obligations.
|
- Residual Disability: A period
of partial disability that immediately follows a period
of total disability.
|
- Residual Market: A source of
insurance available to applicants who are unable to obtain
insurance through ordinary methods in the voluntary market.
|
- Retention: The amount of risk
retained by an insurance company and not the insured.
|
- Retrocession: A process by which
a reinsurer obtains reinsurance from another company.
|
- Retrospective Date: The first
date for which claims will be paid under a claims-made policy
of liability insurance.
|
- Retrospective Rating: Rating
procedure which allows adjustment of an insured's final
rate on the basis of the insured's own loss experience.
|
- Rider: A document which amends
an insurance policy or certificate. It may increase or decrease
benefits, waive the condition of coverage or in any other
way amend the original contract.
|
- Risk: The chance of loss. Also
used to refer to the insured or to property covered by a
policy.
|
- Risk Retention Groups: These
are liability insurance companies owned by their policyholders.
|
- Robbery: The taking of property
from a person by force or threat of violence.
|
- Rollover: Transfer of an IRA
or other qualified pension funds from one financial institution
to another.
|
- Running Down Clause: Additional
coverage which can be added to an Ocean Marine Hull policy
to provide protection for damage to another ship caused
by collision.
|
Back to the Glossary
|
