 | Reserve: (1) An amount representing liabilities kept
by an insurer to provide for future commitments under policies outstanding.
(2) An amount allocated for a special purpose. Note that a reserve is
usually a liability and not an extra fund.
| Residual Disability: A period of partial
disability that immediately follows a period of total disability. Benefits
for residual disability are paid on a pro-rata basis, depending on the
percentage of earnings loss.
| Residual Disability Benefits: A
provision in an insurance policy that provides benefits in proportion to a
reduction of earnings as a result of disability, as opposed to the inability
to work full-time.
| Residual Market: A system through which
insurance is made available to buyers that represent unusually high risks.
| Residual Market: A source of insurance
available to applicants who are unable to obtain insurance through ordinary
methods in the voluntary market. (See AIP, JUA, Facility)
| Retention: The net amount of risk retained by an
insurance company for its own account or that of specified others, and not
reinsured.
| Retention: The amount of the risk kept for
oneself, as opposed to the amount it insures (or reinsures) with another.
| Retrocession: The 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.
| Revocable Trust: A trust that can be
terminated or revoked by its creator.
| Rider: A document which amends the policy or
certificate. It may increase or decrease benefits, waive the condition of
coverage or in any other way amend the original contract.
| Rider: A special policy provision or group of
provisions that may be added to a policy to expand or limit the benefits
otherwise payable.
| Rider: A document that modifies the policy. It may
increase or decrease benefits, waive a condition or coverage, or in any
other way amend the original contract.
| Right of Survivorship:At the death of
one co-owner of property, that person's interest in the property
automatically passes to the surviving joint tenant or tenants.
| Risk: The chance of loss. Also used to refer to the
insured or to property covered by a policy.
| Risk: Any chance of loss.
| Risk: A term used to refer to a person or the peril
insured.
| Risk Classification: The process by
which a company decides how its premium rates for life insurance should
differ according to the risk characteristics of individuals insured (e.g.,
age, occupation, sex, state of health) and then applies the resulting rules
to individual applications. (See: Underwriting)
| Risk control: any conscious action (or decision
not to act) intended to reduce the frequency, severity, or unpredictability
of accidental losses.
|
Risk pooling
arrangement: see Pooling
arrangement.
| Risk Retention Group: An alternative
form of insurance in which members of a similar profession or business band
together to self insure their risks.
| Robbery: The taking of property from a person by
force or threat of violence.
| Rollover: Transfer of IRA or other qualified
pension funds from one financial institution (trustee) to another.
| Roth IRA: An special type of individual
retirement account to which an individual can make contributions with
after-tax dollars. Funds can be withdrawn tax-free at retirement.
| Run-off company: An
insurance company that is being wound up or otherwise not underwriting
business in a particular line. It is thus letting its present insurance
policies run to their expiration dates. |
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