Insurance Glossary: R

Question: What is Railroad Protective Liability?

Answer: Railroad protective liability is an insurance policy to cover the liability for construction or demolition operations on or near railroad property.

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Question: What is Rain Insurance?

Answer: Rain insurance covers losses due to the fall of rain, resulting in reduced profits or earnings.

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Question: What is Rate Adequacy?

Answer: Rate adequacy is the amount of premium an actuary has determined is needed to profitably write a risk or class of risks.

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Question: What is Rate Discrimination?

Answer: Rate discrimination is the improper use of a person’s race, color, creed, or national origin to determine rate or acceptability.

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Question: What is a Rate Filing

Answer: A rate filing is a written notification to a regulator of an insurance company’s intent as to rate or underwriting standards for a class of business.

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Question: What is Re-Underwriting?

Answer: Re-underwriting is reviewing a risk that has already been issued to determine if it is still acceptable. This is usually done in advance of renewal pricing.

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Question: What are Reasonable Repairs?

Answer: Reasonable repairs are those repairs made by the insured to prevent further damage after an insured loss.

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Question: What is Reasonable Security?

Answer: Reasonable Security – The level of security demanded by statute, regulation, or “prudent man” standard.

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Question: What is a Rebate?

Answer: A rebate is an improper inducement paid by the agent to the insured or an agent of the insured to prompt the insured to place insurance through that agent.

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Question: What is Rescission?

Answer: Rescission is the setting aside of an insurance contract by a court. It usually occurs due to fraud or material misrepresentation.

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Question: What is a Recurrent Disability?

Answer: A recurrent disability is one that occurs more than once from the same incident. The employee would qualify for disability payments.

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Question: What is a Recurring Clause?

Answer: In order to receive coverage for a re-occurring injury, the health insurance plan has a recurring clause that designates a certain period of time to elapse between the occurrence and re-occurrence.

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Question: What is a Red Book / Blue book?

Answer: Red Book / Blue Book is a publication that is used to determine the value of both automobiles and trucks.

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Question: What is Redlining?

Answer: Redlining is the improper designation of certain geographical areas considered unacceptable for the writing of insurance. It is illegal because it is considered to be unfair discrimination.

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Question: What is Reinstatement?

Answer: Reinstatement is putting coverage back into effect under a policy in which coverage has been suspended or canceled for a part of the policy term.

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Question: What is a Release?

Answer: A release is a written document stating that policy obligations have been fulfilled.

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Question: What is a Renewal Policy?

Answer: A renewal policy is an insurance contract issued to replace one which has expired.

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Question: What is Rent Insurance?

Answer: Rent insurance covers lost rental income due to a covered hazard making the building unusable by a tenant.

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Question: What is Renters Insurance?

Answer: Renters insurance is designed to protect apartments or dwelling renters from property and liability losses.

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Question: What is Replacement?

Answer: When the insured replaces one life insurance policy with another. Each state has laws requiring insurance agent to inform the insured of their rights under their old policy to prevent dishonest replacement.

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Question: What is Replacement Cost Insurance?

Answer: Replacement cost insurance pays the cost to restore or replace damaged or destroyed property without deduction for depreciation.

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Question: What is Replevin?

Answer: Replevin is the legal action to recover loss of personal property.

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Question: What is a Residual Disability Income Policy?

Answer: A residual disability income policy is protection provided by a health or disability insurance policy in instances where the insured experiences a reduced income due to an accident or illness . . . or the employee returns to work to perform a lesser-paying position or a part time position.

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Question: What is Retention?

Answer: Retention is the dollar amount which a insureds keeps as their own liability.

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Question: What is a Retirement Annuity?

Answer: A retirement annuity provides the insured with a specified set of benefits upon reaching a certain retirement age.

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Question: What is a Retirement Income Policy?

Answer: A retirement income policy is designed to give the annuitant retirement income upon reaching a certain age.

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Question: What is Retroactive Date?

Answer: The retroactive date is a date on a claims-made form which triggers the beginning of coverage.

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Question: What is Return Premium?

Answer: A return premium is given back to an insured after cancellation or partial cancellation of a policy, or audit.

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Question: what is Revocable Beneficiary?

Answer: In a life insurance policy, a revocable beneficiary is when the insured has the right to revoke the beneficiary and designate a new one.

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Question: What is Right of Salvage?

Answer: An insurance company might decide to exercise contractual rights, called the right of salvage, to acquire property for salvage for which it has paid an insured in full for its loss or destruction.

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Question: What is a Riot?

Answer: A riot is a violent disturbance of the peace by a number of people.

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Question: What is Risk?

Answer: Risk is the probability that something bad and fortuitous will happen.

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Question: What is Risk Management?

Answer: Risk management is the active handling of all the potential hazards and exposures to loss a person or entity may experience.

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Question: What is Road Rage?

Answer: Road rage is aggressive or angry behavior by a driver.

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Question: What is Roadside Assistance?

Answer: Roadside assistance is optional insurance coverage for vehicle breakdowns, towing, and related extra expense.

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Question: What is Robbery?

Answer: Robbery is the taking of property by force or threat of force.

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