Risk & Insurance Glossary - R (2024)

RAIN INSURANCE – Insurance against loss of expense incurred or of income expected caused by reduction or patronage of sales or other events by rain, hail, snow, or sleet.
RATE – The unit cost of insurance.
RATING BUREAU – An organization that classifies risks and promulgates rates, usually on the basis of statistical data compiled by the Bureau or of an inspection of risks made by it.
REAL ESTATE/REAL PROPERTY – Land and buildings attached to it.
REGISTERED MAIL INSURANCE – Insurance against loss of certain types of intangible property while in charge of the Post Office Department as registered mail.
REINSTATEMENT – The re–establishment of a policy to its original value where its protection is reduced by the payment of a claim.
REINSURANCE – The placing of insurance by one insurer with another insurer for part or all of a risk.
RELEASE – To give up, abandon and discharge a claim, or an enforceable right against another firm or corporation.
RENEWAL – A policy issued to renew one that is expiring.
RENT/RENTAL VALUE INSURANCE – Insurance that provides indemnity for the loss of rents of a building or if occupied by the owner the rental's value of the property.
REPLACEMENT COST INSURANCE – Insurance under which the loss payable is the replacement cost of the property. The excess over the depreciated replacement cost is payable only if the property is actually replaced.
REPLACEMENT VALUE – The cost to replace something with like kind, quality and capacity.
REPORTING CONTRACT – An insurance contract covering stocks of goods and often other types of property, which total value fluctuates, in their actual amounts, these amounts being reported periodically by the insured, and the premium being based on the reported values.
REPRESENTATION – Oral or written statement made by or on behalf of the applicant or insured concerning existing facts which serve as a basis for writing of insurance.
REPRODUCTION COST – Cost to replace an identical property at the same location.
RESERVATION OF RIGHTS – Act of an insurer to notify an insured it retains the right to affirm or deny its liability when coverage for a claim appears questionable.
RESERVE – A fund set aside to meet some future obligation. More specifically, with insurance, refers to funds earmarked for specific purposes; e.g., reserve for unearned premiums, reserves for losses in process of adjustment.
RESTORATION PREMIUM – The premium charged to restore a policy or bond to its original value after payment of a loss.
RETROACTIVE EXTENSION – Extending into the period of prior insurance, the terms (except amount) of the present coverage.
RETROACTIVE RESTORATION – A provision in a policy or bond whereby, after payment of loss, the original amount of coverage is automatically restored to take care of prior undiscovered losses as well as future losses.
RETROSPECTIVE RATING – A method of rating that adjusts the final premium of a risk in accordance with the experience of that risk during the term of the policy for which the premium is paid. Usually the adjustment is subject to maximum and minimum limits.
RETURN PREMIUM – The amount due the insured if a policy is reduced in rate, reduced in amount, or canceled.
RIDER – (See also ENDORsem*nT)
RIOT AND CIVIL COMMOTION – A tumultuous disturbance of public peace. The exact number needed for a riot is given by individual state law.
RIOT AND CIVIL COMMOTION INSURANCE – (1) Contractual protection from loss caused by riot, strikes, insurrection, and civil commotions; (2) Insurance against loss due to the violent and tumultuous action of three (in one state, two) or more persons.
RISK – (1) Any chance of loss; (2) Uncertainty; (3) The insured or the property or object to which the insurance policy relates.
RISK CONTROL – Techniques or programs used to reduce or eliminate the chance of loss and to reduce the total amount of loss should an event occur that results in a fortuitous loss.
RISK FINANCING – Techniques or methods of providing funds to pay for losses that occur.
RISK MANAGEMENT – The aggregate activity of an organization to manage or coordinate risk control and risk financing programs, including the identification and evaluation of exposures.
ROBBERY – The unlawful taking of property by violence, force, or intimidation.
RUNNING DOWN CLAUSE – A term in ocean marine insurance that refers to the collision of a vessel with another object.