Rate ...
The basic charge per unit set by each Insurance Company for the various lines of insurance they offer.
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Rating Bureau ...
An organization that gathers statistics, computes rates, develops form documents and provides services for Property & Casualty insurers affiliated with it.
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Rating Territory ...
A geographical grouping where Insureds share a similar exposure to the same risks so their insurance premiums are determined by the same rate.
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Real Property ...
Property that is generally not moveable or transportable.
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Reasonable Person Rule ...
Principle of common law stating that each person must behave prudently and exercise ordinary considerations that guide human affairs.
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Rebate ...
To include an additional benefit other than those specified in a policy as an incentive for a customer to make the purchase.
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Reciprocal Company ...
An unincorporated group of members, often managed by an attorney, that share in the retention of their combined risks.
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Recovery ...
Made when an Insurance Company salvages damaged property or gets reimbursed from a Reinsurance Company for a portion of the loss payment to an Insured.
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Reinsurance ...
The contract or treaty of an Insurance Company with often a larger Insurance Company to provide coverage against a substantial risk of loss.
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Reinsurance Facility ...
An alternative means of providing insurance for people who cannot purchase insurance in the voluntary market. Premiums and Loss Payments that are ceded to the facility are pooled and all Insurers share in accordance to their proportion of the voluntary market.
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Renters Policy ...
An insurance package for tenants that provides coverage similar to the personal property coverage of a Homeowners Policy.
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Rents or Rental Value Coverages ...
Insurance that provides replacement cost coverage in the event of an insured peril.
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Replacement Cost Coverage ...
Insurance that provides for the current market value, rather than the depreciated value of property in the event of an insured peril.
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Representation ...
Oral or written statements provided by an applicant that are not part of the contract.
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Reserve ...
The amount of money set aside and specifically designated to cover loss payments to policyholders and claimants. (Contrast, Surplus.)
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Residual Market ...
A collective term that defines the consumers who are generally unable to purchase insurance in the voluntary market.
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Restoration Nonreduction of Limits ...
Coverage limit is restored when property is restored.
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Retention ...
The amount of the risk that is retained, or kept, by whoever has responsibility to protect the property from loss. (See also, Self-Insured.)
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Retention Limit ...
The amount an Insured must pay toward an insured loss before the Umbrella Policy will begin to cover the loss. (See also, Self-Insured Retention.)
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Retroactive Date ...
The date on the Declarations page of a policy that indicates the first date on which a covered peril may occur and be considered a covered loss. (See also, Effective Dates.)
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Rider ...
A document that adds to the original contract for insurance, which becomes a legal amendment to the insurance policy. (Compare, Endorsement.)
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Risk ...
The chance or probability of loss.
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Risk Management ...
The identification of hazards and measures taken to reduce or eliminate them.
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