Rating Bureau: An organization that classifies and promulgates and in some cases compiles data and measures hazards of individual risks in terms of rates in a given territory.
Recovery: Amount recovered from a third party responsible for a loss on which a claim has been paid.
Reimbursement: Payment of an amount of money related to the amount of loss to or on behalf of the insured upon the occurrence of a defined loss.
Reinstatement: (1) Putting a lapsed policy back in force; (2) The payment of a claim under some forms of insurance reduces the principal amount of the policy by the amount of the claim. Provision is usually made for a method of reinstating the policy to its original amount.
Reinsurance: (1) A contract of indemnity against liability by which the insurance company procures another insurance to insure against loss or liability by reason of the original insurance; (2) Insurance by one insurance company of all or part of a risk accepted by it with another insurance company which agrees to reimburse the insurance company for the portion of the claim insured.
Renewable Term Insurance Policy: A term life insurance policy offered at a higher premium that gives the policy owner the option to continue the coverage at the end of the specified term without presenting evidence of insurability.
Replacement Cost: The amount needed to replace or repair damaged property at current prices.
Reporting Form: Fire or other direct damage insurance written under a form of policy that covers fluctuating values of stocks of merchandise, furniture and fixtures and improvements by means of periodic reports submitted to the insurance company by the insured, with an annual adjustment of premium on the average value.
Retroactive Date: Date on a "claims made" liability policy which triggers the beginning of insurance coverage. A retroactive date is not required. If one is shown on a policy, any claim made during the policy period will not be covered if the loss occurred before the retroactive date.
Risk: The chance of loss, the degree or probability of loss or the amount of possible loss.
The above information is for general informational purposes only and is not to be construed as a recommendation or advice in any way shape or form.
Copyright 2009 Stephen W. Gersh Insurance Agency, Inc. All rights reserved.