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

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 © 2016 Stephen W. Gersh Insurance Agency, Inc.  All rights reserved.
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