Q, R Flashcards
Qualified Actuary
a person who meets the basic education, experience and continuing education requirements (these differ by line of business) of the Specific Qualification Standard for Statements of Actuarial Opinion, NAIC Property and Casualty Annual Statement, as set forth in the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States, promulgated by the American Academy of Actuaries, and is in good standing of the American Academy of Actuaries who has been approved as qualified for signing casualty loss reserve opinions by the Casualty Practice Council of the American Academy of Actuaries.
Rate
value of insured losses expressed as a cost per unit of insurance.
Risk Based Capital (RBC) Ratio
ratio used to identify insurance companies that are poorly capitalized. Calculated by dividing the company’s capital by the minimum amount of capital regulatory authorities have deemed necessary to support the insurance operations.
Rebate
a refund of part or all of a premium payment.
Reinsurance
a transaction between a primary insurer and another licensed (re)insurer where the reinsurer agrees to cover all or part of the losses and/or loss adjustment expenses of the primary insurer. The assumption is in exchange for a premium. Indemnification is on a proportional or non-proportional basis.
Reinsurer
company assuming reinsurance risk.
Renters Insurance
liability coverage for contents within a renter’s residence. Coverage does not include the structure but does include any affixed items provided or changed by the renter.
Replacement Cost
the cost of replacing property without a reduction for depreciation due to normal wear and tear.
Reported Losses
Includes both expected payments for losses relating to insured events that have occurred and have been reported to the insurance company, but not yet paid.
Reserve
A portion of the premium retained to pay future claims.
Reserve Credit
reduction of reserve amounts for reinsurance ceded. Reductions may include the claim reserve and/or the unearned premium reserve.
Residence
the domicile location of a member as shown by his or her determination as a resident.
Residual Market Plan
method devised for coverage of greater than average risk individuals who cannot obtain insurance through normal market channels.
Retention
a mechanism of internal fund allocation for loss exposure used in place of or as a supplement to risk transfer to an insurance company.
Retrocession
the portion of risk that a reinsurance company cedes or amount of insurance the company chooses not to retain.
