General Insurance Glossary - Starting with R: Word, Meaning & Terms
Glossary on General Insurance Terms starting with R
R
R.C.BOOK : Registration certificate of vehicle confirming the ownership; indicative of insurable interest on the part of the insurance proposer; verified by the surveyor or insurance company in the event of an accident related to the insured vehicle
R.I.V. POLICY : Reinstatement value policy; standard fire and special perils plan including reinstatement clause where building, plant and machinery, or other fixed asset/s are covered for replacement or reinstatement cost allowing the indemnification of the insured in case of loss for the replacement cost or reinstatement with similar property when new as on date basis, indemnity principle is modified some to provide compensation to insured for new in place of old
RATABLE PROPORTION OF LOSS : Treating claim for loss that is insured under more than single policy; in such instances settlement is made by every insurance provider for only its portion of the loss that is determined on the basis of the sum assured bearing to the proportionate amount to the total of all involved policies
RAM : Related to energy risks, closing and sealing component on blowout preventer
RAM BLOWOUT PREVENTOR : In relation to energy risks, blowout preventer that uses Rams for sealing off pressure on any hole with or without pipe also called ram preventer
RATE GUIDE : Company prospectus or manual providing rates of premium for different kinds of insurance coverage related to an individual, peril, or property; furnishes rates for all insurance plans excepting ones that are subjected to tariff; it is primarily intended for agents who solicit business and comprise guidelines for business procurement
RATE OF EXCHANGE : Price of one currency in relation to that of another
RATE OF GROSS PROFIT : Gross profit as a percent of total turnover; related to consequential loss policy, it refers to rate of gross profit earned on the turnover in a financial year preceding the date of the loss appropriately adjusted for business trends
RATE OF PREMIUM : Pricing factor on which payable premium for particular kind of insurance cover is based
RATE ON GNPI : Related to excess of loss reinsurance is the premium for the excess loss cover expressed as percent of gross profit net premium
RATE ON LINE : Related to excess of loss reinsurance is the premium for the excess loss cover expressed as percent of the limit of excess of loss coverage for any single loss making event
RATE PER MILLE : Premium rate calculated for every thousand rupees of sum assured
REPATRIATION BENEFITS (UNDER OVERSEAS MEDICLAIM) : Coverage for medical necessity for evacuating to medical facility, medically equipped flights to return home, or repatriation of mortal remains to the insured's primary residence
RISK : Possibility of loss also used for referring to insured or property covered with an insurance policy
RISK MANAGEMENT : Procedure to identify, analyze, and either accept or mitigate uncertainty
RATE : Rate of estimated value of future losses; predicted on historical experiences and considering the involved risks
RATED POLICY : Also known as extra risk policy is a plan issued at higher than the standard rate of premium for covering extra risk where an insured works in hazardous conditions or has an impaired health issue
REINSTATEMENT : Resumption of the cover under an insurance policy that has lapsed
REPLACEMENT COST : Cost for repairing or replacing property at construction costs prevailing when loss occurs; cost for rebuilding or repairing the property without taken depreciation into consideration
RATEMAKING : Statistical procedure whereby the insurance company determines risks and pricing for the basic kinds of insurance plans
RATING TERRITORY : Geographical grouping where hazards tend to equalize and permit the establishment of equitable rate for the territory
REASONABLE AND CUSTOMARY CHARGE : Charge for health insurance coverage that is consistent with the on-going charge or rate in specific geographic location for similar or identical services
REBATING : Providing valuable consideration often all or some part of the commission to the prospect or insured as inducement to purchase or renew; rebating is not allowed by law
RECURRING CLAIM PROVISION : Provision within health insurance plan that specifies the period of time during which recurrence of condition is considered to be continuation of previous period of disability or hospital confinement
REDUCED PAID-UP INSURANCE : Kind of insurance available as non-forfeiture option provides for the continuation of original insurance plan but for a lower amount
REGULATION : Supervision of business practices by government entity
REHABILITATION : Restoration of fully disabled individual to meaningful occupation; provision in certain long-term disability plans providing for continuation of benefits or financial assistance while totally disabled insured is restraining or attempting for resumption of productive employment
REIMBURSEMENT : Payment of expense actually incurred as a result of an illness or accident but not exceeding an amount specified within the policy
REINSURANCE : Assuming all or part of the risk undertaken by one insurance company by another insurance service provider called the reinsurer
REINSURANCE FACILITY : Alternative technique for servicing insured's who cannot obtain insurance in the voluntary market; losses and premiums for business that has been ceded to the facility are pooled and all insurance providers share as per their proportion without considering depreciation
RENEWABLE TERM INSURANCE : Term insurance that is renewable at the end of the term at the option of the holder and without needing evidence of insurability for limited number of successive terms; rates increase at every renewal as age of the assured increases
RENEWAL : Continuance of the cover under an insurance policy beyond the original term through the acceptance of the premium for new policy form by the insurance company
RENTER'S POLICY : Package insurance plan including coverage that is similar to homeowners policy for covering personal property of renter or tenant in the building
REPLACEMENT : Substitution of health insurance cover from one policy contract to another
REPLACEMENT RATIO : Percent of income prior to retirement that is needed for replacing for maintenance of the same standard of living after retirement
REPRESENTATION : Statements made by applicants whereby they represent as being substantially true to the best of their knowledge and belief but not warranted as exact in all details
RESCISSION : Termination of insurance contract by insurance provider on the basis of material misstatement while applying; action of rescission should occur within the contestable period or time limit on certain defenses but comes into effect on the issue date making the contract void since its inception
RESERVATION OF RIGHTS : Arrangement whereby insurer defends a case without any commitment of providing coverage in case the facts disclosed during the trial reveal the occurrence as not being covered
RESERVE : Amount representing liabilities kept by an insurer for providing further commitments under the outstanding policies; amount allocated for special purpose; it is not a liability and an extra fund
RESIDUAL DISABILITY : Period of partial disability that immediately following a period of complete disability; benefits for residual disability are payable on pro-rata basis and are based on the percent of earning loss
RESIDUAL DISABILITY BENEFITS : Provision in insurance plan providing benefits in proportion to the decrease of earnings due to disability instead of the inability to work full time
RESIDUAL MARKET : System through which insurance is made available for buyers and represents unusually higher risks
RETENTION : Amount of risk that is retained by the insurance company for its own account or that of specified others but not reinsured
RETROCESSION : Procedure whereby reinsurer obtains reinsurance from another company
RETROSPECTIVE DATE : First date for which the claims are paid under claims-made policy of liability insurance
RETROSPECTIVE RATING : Rating procedure that allows adjusting the insured's final rate depending on the insured's own loss of the experience
REVOCABLE TRUST : Trust that can be terminated or revoked by the creator/s
RIDER : Document that modifies the policy; can increase or reduce the benefits, waive any condition/s or coverage, or in any other way modify the original contract
RIGHT OF SURVIVORSHIP : At the demise of one of the co-owner of the property that person's interest in the property automatically passing to the surviving joint tenant/s
RISK CLASSIFICATION : Process through which company decides how the premium rates for life insurance must differ as per the risk characteristics of the individuals; factors include age, occupation, gender, health conditions etc.; these rules are applied for individual applicants
RISK CONTROL : Any conscious action that aims to lower the severity, frequency, or unpredictability of accidental losses
RISK POOLING ARRANGEMENT : Pooling arrangement
RISK RETENTION GROUP : Alternative insurance form whereby members of similar profession or business come together for self-insuring the risks
ROBBERY : Taking of property from an individual through force or threat of violence
ROLLOVER : Transfer of the IRA or any other qualified pension fund from one institution to another
ROTH IRA : Special kind of individual retirement account that an individual can contribute post tax; tax-free withdrawals are available after retirement
RUN-OFF COMPANY : Insurance provider being wound up or otherwise not underwriting business in any particular segment; thereby letting current insurance plans run to their dates of expiration
RATING BUREAU : Organization classifying and promulgating and in certain cases compiling data and measuring hazards of individual risks in relation to rates within given geographical territory
RECOVERY : Amount recovered from 3rd party/parties responsible for the loss on which the claims have been paid
REBATE : Reduction in the amount of the premium
REPLACEMENT CLAUSE : Clause that limits the liability of the underwriter for damage to machinery cargo
REPORTING FORM : Fire or direct damage cover written under policy covering fluctuating values of merchandise stocks, fixtures and furnitures, and improvements through periodic reports submitted to the insurer by the assured with annual adjustments of the premium on an average value
RETROACTIVE DATE : Date on "claims made" liability insurance plan that triggers at the commencement of the coverage; retroactive date is not needed if one is shown on the policy, and claim made during the period of the plan is not covered in case loss occurs prior to this date