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 have a glimpse at this site 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. Continue reading