A Washington, DC-based trade organization representing professional reinsurers and other reinsurers

Reinsured. The term for an insurer that has transferred all or part of its underwritten risk to a third party by purchasing reinsurance; also known as a Cedant.

Renewable Term Insurance. Term life insurance that, by its terms, is renewable for a limited number of additional terms by the policyholder without evidence of insurability. See Term Life Insurance.

Rent-A-Captive. An insurer formed for the purpose of insuring risks associated with the activities of a group of insureds; it is controlled not by the insured but by an insurer, a broker or other third party.

Replacement Cost Insurance. A form of property insurance in which the insured is indemnified for property losses based upon replacement cost, without regard to depreciation.

A formula method for estimating the capital requirements of an insurer by measuring its risk characteristics in areas such as asset risk, credit risk and underwriting risk and then comparing the results to the company’s stated capital

Reserve Deficiency. The shortfall between the currently estimated cost of claim payments and related expenses that an insurer ultimately will be required to pay and the reserves currently established by the insurer.

Reserve Redundancy. The amount by which the reserves currently established by an insurer exceed the currently estimated cost of claim payments and related expenses that the insurer ultimately will be required to pay.

Reserves. Liability established by an insurer to reflect the estimated cost of claim payments and related expenses that the insurer ultimately will be required to pay with respect to the insurance it has underwritten.

Residual Market. An assigned risk plan, joint underwriting association or any similar mechanism designed to make coverages available to those unable to obtain them in the voluntary markets.

Residual Value Insurance. A form of insurance that guarantees the owner of leased property a specified value as of a particular date, usually the termination of the lease.

Res Ipsa Loquitor. online payday VT A Latin phrase meaning “the thing speaks for itself.” As a legal doctrine, because the event speaks for itself, the burden of proof falls to the defendant to overcome a presumption of negligence.

The legal doctrine that employers may be held liable for the acts of their employees acting within the scope of their employment.

Retention. The amount or portion of risk that an insurer or a self-insured retains for its own account. Also known as “net line.”

Retrocession. A transaction in which a reinsurer cedes to another reinsurer (the “retrocessionaire”) all or a part of the reinsurance it has assumed. A retrocession does not legally discharge the ceding reinsurer from its liability to the reinsured.

Respondeat Superior

Retrospective Review. After-treatment monitoring of utilization patterns against objective medical norms to detect inappropriate care (too little or too much) or excess cost. This is a component of utilization management.

Return Premium. Premium that has been paid to an insurer but which has not been earned and is returned to the insured when the policy is canceled or the terms of the policy are changed, thus reducing the amount of premium due.

Revocable Beneficiary. The beneficiary under a life insurance policy whose designation as beneficiary can be changed at the discretion of the policy owner.

Risk. The chance or possibility of loss. For example, physicians may be held at risk if hospitalization rates exceed agreed-upon thresholds. The sharing of risk often is employed as a utilization control mechanism within the HMO setting. Risk also is defined in insurance terms as the possibility of loss associated with a given population.

Risk and Insurance Management Society (RIMS). A New York City-based trade organization of risk managers and purchasers of commercial lines insurance.