Glossary Terms R - S Flashcards
Rate service organization
An organization that is formed by, or on behalf of, a group of insurers to develop rates for those insurers, and to file rates with the insurance department on behalf of its members. They also act as a collection point for actuarial data.
Rebating
Any inducement offered in the sale of insurance products that is not specified in the policy.
Reciprocal exchange
An unincorporated group of individuals who mutually insure one another, each separately assuming a share of each risk.
Reciprocity
A situation in which two parties provide the same help or advantage to each other (for example, Producer A living in State A can transact business as a non-resident in State B if State B‘s resident producers can transact business in State A).
Recurrent disability
A policy provision that specifies a period of time during which the recurrence of an injury or illness will be considered a continuation of a prior period of disability.
Reduction
Lessening the possibility or severity of a loss.
Reinsurance
A form of insurance whereby one insurance company (the reinsurer) in consideration of a premium paid to it, agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued.
Renewability clause
A clause that defines the insurance company’s and the insured’s right to cancel or renew coverage.
Representations
Statements made by the applicant on the insurance application that are believed to be true, but are not guaranteed to be true.
Rescission
The termination of an insurance contract due either to material misrepresentation by the insured or by fraud, misrepresentation, or duress on the parts of the agent/insurer.
Reserve
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
Residual disability
Type of disability income policy that provides benefits for loss of income when a person returns to work after a total disability, but is still not able to perform at the same level as before becoming disabled.
Respite care
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.
Restorative care
An area of dentistry that involves treatments that restores functional use to natural teeth such as fillings or crowns.
Rider
Any supplemental agreement attached to and made a part of the policy indicating the policy expansion by additional coverage, or a waiver of a coverage or condition.
Risk
Uncertainty as to the outcome of an event when two or more possibilities exist.
Risk retention group
A liability insurance company owned by its numbers, which are exposed to similar liability risks by virtue of being in the same business or industry.
Risk, speculative
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Risk, Standard
An applicant or insured who is considered to have an average probability of a loss based on health, vocation and lifestyle.
Risk, Substandard
An applicant or insured who has a higher than normal probability of loss, and who may be subject to an increased premium.
Service plans
Insurance plans where the healthcare services rendered are the benefits instead of monetary benefits.
Short– Rate cancellation
Canceling the policy with a less than proportionate return of premium.
Short term disability insurance
A group or individual policy that covers disabilities of 13 to 26 weeks, and in some cases for a period of up to two years.
Sickness
A physical illness, disease, or pregnancy, but not a mental illness.
Skilled nursing care
Daily nursing care or skilled care, such as administration of medication, diagnosis, or minor surgery that is performed by or under the supervision of a skilled professional.
Standard provisions
Requirements approved by state law that must appear in all insurance policies.
Stock companies
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
Subrogation
The legal process by which an insurance company seeks recovery of the amount paid to the insured from a third-party who may have caused the loss.
Superintendent (commissioner, director)
The head of the state department of insurance.
