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Railroad Protective Liability
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The standard commercial general liability policy excludes liability for construction or demolition operations on or near railroad property, such as tracks, trestles, sidetracks,etc. In order to provide coverage for this exposure, the railroad protective liability policy is available to provide protective liability coverage for railroad owners, property owners, or contracts from the vicarious acts of contractors or subcontractors who are working on their behalf. The policy is purchased by the subcontractor or contractor in the name of the party needing protection. For example, a contractor demolishing a building near a railroad track may need to purchase a railroad protective liability policy for the property owner, the railroad, or both.
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Rate
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The price for a unit of insurance; all units in a given policy, multiplied by the rate per unit, produce the premium. In fire insurance, the price
per $100 of insurance for one year. The basis for pricing other types of insurance varies greatly; for example, payroll is used in workers compensation insurance, area of retail floor space or sales volume is used in certain types of general liability insurance, and so forth.
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Real Property
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The earth and all attached to it; land and buildings. Also known as real estate.
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Reinstatement
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1)Restoration of the amount of insurance depleted from a policy by payment of loss. Most fire policies contain an automatic reinstatement clause.
2)Reinstituting or 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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Reinsurance
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1)The transaction whereby an insurance company(the reinsurer), for a consideration, agrees to endmnify another insurance company known as the ceding company (the reinsured) against all or part of a loss which the latter may sustain under a policy or policies it has issued.
2)When referred to as "a reinsurance," the term means the relationship between reinsured(s) and reinsurer(s).
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Reinsurance Treaty
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A reinsurance agreement between an insurance company and a reinsurer, usually for one year or longer, which may be divided into two broad classifications:
1)The participating type which provides for sharing of risks between the ceding company and the reinsurer; and
2)The excess type which provides for indemnity by the reinsurer only for loss which exceeds some specified predetermined amount.
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Renewable Term Life Insurance
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A term life insurance coverage that offers the renewal of the coverage without making the insured take physical exams or otherwise prove insurability.
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Renewal
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A policy issued to replace one which has expired.
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Rental Reimbursement Coverage
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An optional personal auto coverage endorsement to provide reimbursement for the expenses incurred by an insured when a temporary replacement vehicle is needed following a covered accident to the insured's vehicle.
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Replacement Cost Insurance
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Protection which pays the cost to restore or replace damaged or destroyed property without deduction for depreciation. Automatically included in homeowners forms.
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Reserve
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An amount representing a liability of an insurer
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Retention
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1)The amount which an insured or an insurer assumes as its own liability and which is not insured otherwise.
2)In reinsurance, the amount which a primary insurer assumes for its own account. In pro rata reinsurance contracts, the retention may be a percentage of the policy limit. In excess of loss contracts, the retention is a dollar amount of loss.
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Retention Clause
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A clause in a policy of reinsurance by which the ceding company agrees to retain for its own account a certain part of the line.
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Retroactive Date
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The earliest date for which coverage is afforded under a claims-made form. Usually the effective date of the first year of such policy form provided to the insured.
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Retrospective Rating
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A plan under which the premium is determined after the policy has expired based on contractual factors, chiefly the loss experience of the insured during the policy term. Designed to encourage safety by the insured and to compensate the insurer if larger than expected losses are incurred.
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Return Premium
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That part of a premium returned to an insured upon cancellation or partial cancellation of a policy, when rate adjustments are necessary, or when an advance premium is in excess of the actual premium.
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Riot
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Violent and tumultous actions by a number of people, coverage for which is included in the extended coverage endorsement.
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Risk
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1)Defined variously as uncertainty of loss, chance of loss, or the variance of actual from expected results. However defined, its existance is the reason people buy insurance.
2)The subject matter of an insurance contract, such as the building, cargo or liability exposure insured.
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Risk Manager
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The person or manager in charge of the active identification, evaluation, and management of all of the potential hazards and exposures to loss a risk may experience. The handling of those exposures is not limited to insurance options, but includes a variety of methods such as alternate financing, retention, reduction, elimination, transfer, and/or any combination of methods.
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Robbery
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The taking of property by violence or threat of violence.
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Running Down Clause
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The clause in an ocean marine hull policy which covers damage done to another ship by collision, and other property damage caused by collision.
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Runoff
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In a reinsurance contract, there may be a termination provision to require a reinsurer to continue the liability for any losses that may occur to policies still in force at the time the contract terminates, until those policies expire.
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Services