Glossary

Renewable and convertible (R&C) term life insurance refers to a form of term life insurance that is usually issued for a period of 1 or 5 years that can be renewed for additional terms or can be converted to a permanent or cash value policy. R&C term life insurance is usually used for individuals with short-term, high-value life insurance needs, such as to cover a short-term business loan, where the lender requires the coverage.

Renewable term refers to term life insurance that may be renewed periodically without evidence of insurability but often at a higher premium.

Renewal certificate is a very limited method of policy renewal by issuing a certificate rather than by issuing a new policy. The certificate refers to the original policy but does not enumerate all of its terms.

A renewal policy is an insurance policy issued by the same insurer or insurer group to replace an expiring policy.

Rent-a-captive refers to an arrangement in which a captive insurer "rents" its facilities to an outside organization, thereby providing the benefits that captives offer without the financial commitments that captives require. In return for a fee (usually a percentage of the premium paid by the renter), certain captives agree to provide underwriting, rating, claims management, accounting, reinsurance, and financial expertise to unrelated organizations.

A rental captive is a captive insurance company that allows unrelated parties ("participants") to use the captive for a fee, thereby eliminating the need for formation and operation of a new company. The participant may or may not be required to contribute capital and may or may not be a preferred shareholder in the rental captive. Provided such use is permitted in a domicile, rental captive participants may be insureds or non-insureds, such as insurance agents.

A rental cost reimbursement endorsement adds coverage for the cost of renting temporary replacement equipment to a contractors equipment policy that is triggered by covered damage to covered equipment.

The Rental Reimbursement Coverage Endorsement (CA 99 23) is an optional commercial auto coverage endorsement that adds coverage for an additional amount incurred for the cost of renting an auto in the event of covered damage to the covered auto. Coverage under this endorsement is in addition to any other physical damage coverage available and is not subject to any deductible.

Renters insurance, similar to homeowners insurance, covers the contents of the home, apartment, or a condo the tenant rents but does not own. It also provides personal liability and medical payments coverage. Also known as tenants insurance or an HO 4 policy, it covers personal property losses similar to those insured by homeowners insurance, like fire and theft, but does not cover the building itself.

Rents or rental value insurance is time element property insurance that pays for loss of rental income when a building that is rented out to others has been damaged by a covered cause of loss. Coverage is also provided for the fair rental value of the portion of the premises occupied by the insured. Rental value insurance can be provided by a business income coverage form or a specialized rents or rental value coverage form.