Glossary

Rating experience refers to computing a premium based on the loss experience of the risk itself. Essentially, it is a comparison of actual losses with expected losses. If actual losses are lower than expected, a premium credit to the manual rate or prior-year premium results. If actual losses are greater than expected, a premium surcharge results.

Rating methodology refers to the method used by an underwriter when calculating premiums. Principal methods are manual, experience (retrospective or prospective), burning cost, or judgment.

The financial strength of insurance companies and their ability to pay the claims of their policy owners are very important to the insurance-buying public and to the states that license and certify those insurers. Accordingly, insurance companies are rated by various rating organizations. Some of these rating organizations are: AM Best Company, Conning & , Demotech, Fitch Ratings, Moody's, Standard and Poor's, and Weiss Rating.

Re-entry term life insurance refers to a form of annual renewable term insurance under which the insured can reapply and be underwritten for the term insurance after a period specified in the policy to possibly obtain a lower premium than the guaranteed renewal rate.

Readjustment income, in life insurance, is an amount of money to provide for readjustment expenses after the death or disability of the breadwinner.

Real estate brokers errors and omissions insurance is professional liability coverage for persons engaged in buying, selling, leasing, or otherwise dealing in real estate on behalf of others. Depending on the scope of such policies, coverage may also apply to persons engaged in property management, real estate appraisal, real estate consulting, or other related aspects of the business, although coverage for these more specialized exposures usually requires a special endorsement. As is the case with most professional liability policy forms, coverage is written on a claims-made basis.

Real property is land and most things attached to the land, such as buildings and vegetation. Growing crops, since they are physically attached to the soil, are generally considered real property. The definition of "land" includes not only the surface of the earth, but also everything above and beneath it. Thus, the ownership of a tract of land theoretically includes both the airspace above it and the soil from its surface to the center of the earth.

Reasonable accommodation, as defined in the Americans with Disabilities Act (ADA) of 1990, is either modifications or adjustments to a job application process or a job performance process that enable a qualified applicant with a disability to be considered for or perform the position. It includes modifications or adjustments that allow the disabled worker the same benefits and privileges afforded other similarly situated employees without disabilities. This modification or job adjustment must be achieved without imposing an undue hardship on the employer's operations.

The reasonable expectations doctrine is a legal concept of policy interpretation recognized by some states. Courts applying this doctrine will interpret a policy to provide the protection an insured party might reasonably have expected, even if the policy wording does not provide that coverage.

Reasonable repairs as an additional coverage provided by the homeowners policy. The insurer will pay for any reasonable costs incurred by the named insured to protect his or her insured property from further damage, if the cause of loss is a covered peril. This is additional coverage and does not affect the limit of insurance applicable to the covered property. This concept is referred to as the "sue and labor clause" in most commercial property and marine forms.