Glossary

The Racketeer Influenced and Corrupt Organizations (RICO) Act of 1970 is a law providing for treble damages against those engaged in "a pattern of racketeering activity." At one time, a number of liability policies excluded coverage for suits alleging RICO Act violations against insureds. Now, however, this exclusion is much less common.

A radiological weapon disperses radioactive agents to inflict injury or cause contamination or damage. A dirty bomb using a conventional explosion to disperse radioactive contaminants is one such type of weapon, but this could also encompass other ways to disperse nuclear contaminates, such as through a food or water source.

Radius class describes the customary distance traveled by commercial vehicles as measured in a straight line from the place of garaging to the destination. There are three radius classes: local (not more than 50 miles), intermediate (between 50 and 200 miles), and long distance (more than 200 miles).

Radius of operations describes the area or areas where a company conducts its business.

Railroad protective liability is insurance coverage protecting a railroad from liability it incurs because of the work of contractors on or near the railroad right-of-way.

A railroad sidetrack agreement is an agreement between a railroad and a business in which the railroad agrees to build a siding on the property of the business, and the business will hold the railroad harmless for certain liability arising out of the use of the sidetrack. Sidetrack agreements are "insured contracts" under the provisions of standard contractual liability insurance coverage.

A rainmaker is a person who markets the law firm and attempts to generate new business, particularly one who is very adept at bringing in new clients and accounts.

Ransomware is a type of cyber attack that blocks access to a victim's data, website, client services systems, or other critical resources. The ransomware is then used to demand payment of monies in return for unblocking access to the victim's resources. Coverage for losses associated with ransomware is available within cyber and privacy insurance policies under an insuring agreement most often termed "cyber-extortion coverage." The items it covers include (1) monies to pay ransom demands, (2) the cost of hiring experts to negotiate with hackers, and (3) the cost of computer forensics experts who can determine how hackers gained access to the insured's computer system and then make recommendations on how to prevent future incursions.

Ratable losses refer to the insured's incurred loss dollars, including all losses paid and outstanding, subject to a maximum per-loss amount or loss limitation.

Rate in an insurance context is a unit of cost that is multiplied by an exposure base to determine an insurance premium. An insurance rate is the amount of money necessary to cover losses, cover expenses, and provide a profit to the insurer for a single unit of exposure. Rates, as contrasted with loss costs, include provision for the insurer's profit and expenses.