One insurance company gets insurance from another company to protect
themselves against catastrophic loss.
RENEWAL - The continuation of something that is about to expire. With an insurance policy it will take effect upon the expiration of the old policy.
RENT INSURANCE (RENTAL INCOME) - For loss by the landlord of the rent that would have been payable by the tenant where the tenant is relieved of liability for the payment of rent during a period of untenantability due to property damage by a peril.
RENTAL VALUE INSURANCE - Insurance that provides for the loss of rental value of property when the owner or the tenant is deprived of the use of the property because of its being damaged due to peril that is insured against.
REPLACEMENT COST - The cost to replace property without deduction for depreciation.
REPORTING FORM - This policy covers fluctuating values of stocks of merchandise, furniture and fixtures and improvements and betterment's by means of periodical reports.
REPRESENTATIONS - On an application, these are facts that the applicant represents to be true and accurate to the best of their knowledge and belief.
RESCISSION - The repudiation of a contract for cause.
RES GESTATE - Spontaneous remarks made before witnesses while something is happening or has just occurred. For example, a witness might hear one of the drivers at the scene of an automobile accident admit that he ran a red light.
RES JUDICATA - "The matter has been decided"; or "The court has already ruled on the dispute".
RESERVE - This is a name applied to funds that the insurance company sets aside for the purpose of ultimately settling a claim or loss.
RETAINED RIGHTS CLAUSE - When parties submit to an appraisal to determine the value of a loss, the insurer still retains its right to deny the claim even if an appraisal award is rendered.
REVIVAL - Similar to reinstatement.
RIDER - This is another name for an endorsement or added wordage to an already written insurance policy. Usually they are printed forms which modify an insurance policy, either adding to or reducing its coverage.
RISK - (1) A chance of loss. (2) A person or thing insured.
RISK MANAGEMENT - The process of dealing with risk in the most efficient manner. This often involves insurance.
ROBBERY - The taking by violence or the threat of violence of the personal property of another, commonly referred to as holdup.
SALVAGE - (1) The value of property after it has been partially destroyed or damaged by fire or other insurance-covered causes. (2) In marine insurance, it means the cost of bringing a damaged and rudderless ship to port, rather than letting it become derelict and sink.
SELF-INSURANCE - This is the setting aside of funds by an individual or company to pay its own insurance losses.
SLANDER - The speaking of false, malicious an defamatory words which damage the reputation of another person.
SOLICITOR - An appointed or authorized individual to solicit and receive application for insurance as a representative.
SPECIAL DAMAGES - In casualty insurance, the out-of-pocket expenses that arise directly from the damage done to a third party, such as the money expended for doctors and hospital, the repair of clothing, and the loss of wages.
SPECIALS - This is a shortened form of the term "special damages", as described above, and which is common expression to adjusters and attorneys.
SPRINKLER LEAKAGE INSURANCE - This insurance insures against the accidental damage done by an automatic sprinkler system, for example, the freezing of pipes. If fire causes the water discharge, the fire department pays for the damage.
STACKING - This is where one policy is adding benefits "on top" of another policy. Although not applicable in all states "stacking" can sometimes double benefits.
STANDARD - This risk meets the same conditions of health, physical condition, and morals as the tabular risks on which the rate is based.
STANDARD FIRE POLICY - Usually this is the 1943 New York 165-line fire insurance policy. Some states modify it.
STANDARD PROVISIONS - (1) Provisions that are prescribed by the state law and which must appear in all policies in that jurisdiction. (2) Provisions that the NAIC have adopted to apply to group Life Insurance as minimum protection, these are usually required by law. (3) Formerly, these were a set of prescribed provisions which regulated the operating conditions of a Health Insurance policy between 1912 and 1950. They are now superseded by uniform provisions for Individual Accident and Health Insurance policies which contain an NAIC model bill.
STATED AMOUNT - An agreement by the insurance company to pay a specified amount of money to or on behalf of the insured upon the occurrence of a loss.
STATEMENT - This is either a written or stenographer transcribed account of the details of an accident or occurrence.
STATUE OF LIMITATIONS - The law which places a time limit within which law suits must be brought before the right to bring the law suit expires. This varies from state to state.
SUB-STANDARD - This is less than standard.
SUMMONS - A written notification from a proper court officer to be served on a person, ordering him to appear in court by a specified day to answer a complaint by one who claims damage.
SURPLUS LINE - The coverage that is procured in an unlicensed insurance company because of its unavailability in the licensed market.
SURVEY - The investigation and inspection of certain types of insurance-covered property such as ship cargoes, ships and aircraft losses, generally referred to as a survey or marine survey.