Replacement Cost
Replacement cost is a method of valuing property in insurance that refers to the cost to replace damaged or destroyed property with new property of similar kind and quality, without deducting for depreciation.
Insurance Glossary
Glossary/Encyclopedia of insurance terms. In addition to the brief description of insurance terms, we have also provided detailed explanation of each term. By selecting ‘More Details’ in each term, you can view the detailed explanation of the term with examples.
Reserves
In insurance, reserves are funds that an insurance company sets aside to cover future claims and other obligations.
Retention
In insurance, retention refers to the portion of risk that an individual or business keeps for themselves, rather than transferring it to an insurance company.
Retroactive Date
The date on or after which a loss must occur in order to be covered by a claims-made insurance policy.
Retrocession
Retrocession is a process in the reinsurance industry where a reinsurer transfers some of its assumed risks to another reinsurer.
Retrospective Rating Policy — Workers’ Compensation Insurance (USA)
A Retrospective Rating Policy (commonly called a “Retro Policy”) in Workers’ Compensation (WC) insurance is a premium arrangement where the final premium is adjusted after the policy period based on the actual loss experience of the insured during that period.
Rewrite
A policy is rewritten the system when there is a material error in the policy.
Rider
A rider, also known as an endorsement or addendum, is a modification or addition to an existing insurance policy that alters the terms of the original policy.
Rideshare Insurance
Rideshare insurance refers to specialized auto insurance coverage designed for vehicles used for Transportation Network Companies (TNCs) such as Uber, Lyft, Ola, Grab, Didi, and Bolt. These vehicles frequently shift between personal use and commercial use, creating gaps in traditional auto policies.
Risk
In insurance, risk refers to the uncertainty or possibility of loss or damage.
Risk Inspection
A risk inspection is a thorough examination of a property or business to identify potential hazards and assess the risk of loss or damage.
Safe-Driver Discount Program (Telematics-Based) — USA
A Safe-Driver Discount Program refers to voluntary telematics-based auto insurance programs used widely across the United States. These programs reward policyholders with premium discounts based on their actual driving behavior, rather than relying solely on traditional rating factors such as age, location, vehicle type, or claims history.
