Glossary

Restitution of fees occurs when a client seeks to recover fees paid a professional for services that when rendered resulted in the client suffering a financial loss due to a negligently performed professional service. For example, a lawyer negligently drafted a business contract that caused a client to lose money. In addition to suing to collect the amount of the loss caused by the faulty contract, the client also sues for a return of the legal fees he paid for drafting the contract. Coverage for restitution of fees is excluded by many professional liability insurance policy forms—typically those covering lawyers, accountants, and architects and engineers. Another approach taken by a number of policies is to preclude coverage for restitution of fees within their definitions of "damages" or "loss."

A restoration of limits provision is when a scheduled item has been lost or destroyed, there is nothing left to insure. After insured property is destroyed, and an insurer indemnifies the insured, what happens to the insurance? Many property policies include a restoration of limits provision that answers this question. Three approaches are common. Some policies state that the limits are restored after a loss is paid, and some state exactly the opposite—that paying a loss does not reduce the policy limits. With others, however, after the insurer pays a total loss, coverage ceases and the insurer returns any unearned premium.

Results standards focus on the achievement of certain goals without regard to the activities required to achieve those goals. These standards contrast with activity standards.

A resumption plan is a plan for actions to be taken to recover critical business functions but not all aspects of the business.

Res ipsa loquitor is Latin for the "the thing speaks for itself." This is a legal doctrine used to assess liability (often against professionals) when there is no evidence of negligence with respect to how an injury took place. For instance, if a sponge is inadvertently left in a patient's stomach, the doctrine of res ipsa loquitur is typically invoked to establish liability because such an event is presumed not to occur in the absence of negligence.

Res judicata is Latin for "a thing adjudicated." It is the principle that a cause of action may not be relitigated once it has been judged on the merits. A final judgment between parties that is conclusive as to that issue in later suits between those same parties.

A retail agent or broker is an insurance agent or broker who acts as an intermediary between an insured and the marketplace. In some instances, retail agents or brokers deal directly with an insurer in arranging coverage, while in others, retail agents or brokers work with managing general agents or wholesale brokers to secure coverage for their client-insured.

Retail insurance covers liabilities such as customer slips and falls, property damage, theft, and employee injuries and illnesses. Depending on the particular needs of the business, retail insurance coverages may include general liability, workers compensation, business owners policy (BOP), and commercial auto.

Retaliation claims result when an employee alleges discrimination based on protected status (e.g., race, gender, disability) and, in retaliation for making such a claim, the employee is treated adversely (e.g., the employee receives a demotion). A successful retaliation claim must prove three elements: (1) that the employee engaged in a "protected activity" (filing a discrimination claim, alleging corporate misconduct), (2) that the employee suffered an "adverse action" (termination), and (3) that there was a causal connection between the adverse action and the protected activity. Employment practices liability insurance (EPLI) policies cover retaliation claims. Retaliation claims have also been made in conjunction with workers compensation claims. That is, employees have sued their employers when, in response to filing a workers compensation claim, an employer took some form of adverse action against the worker (e.g., imposing a change in work hours, giving the employee a demotion or a reprimand).

Retaliatory law is a state law providing that another state will be treated in the same terms that the home state is treated by the foreign state in dealings with insurance. If, for example, another state requires that all nonresident agents writing insurance or risks in that state obtain a license from that state, a state with a retaliatory law will impose the same requirement on that other state's agents.