Glossary

Rehabilitaiton management Involves the development and application of a systematic plan for effectively rehabilitating injured persons.

Reimbursement policies are a type of insurance policy in which the insured must first pay losses out-of-pocket and then seek reimbursement for any covered loss from the insurer, as opposed to policies where the insurer is required to "pay losses on behalf of" an insured.

Under many forms of reinsurance and insurance, the payment of a claim reduces an aggregate limit by the amount of the claim. Provision is sometimes made for reinstating the policy limit to its original amount. This is called reinstatement.

A reinstatement premium is a prorated insurance or reinsurance premium charged for the reinstatement of the amount of a primary policy or reinsurance coverage limit that has been reduced or exhausted by loss payments under such coverages.

Reinsurance refers to a transaction in which one party, the "reinsurer," in consideration of a premium paid to it, agrees to indemnify another party, the "reinsured," for part or all of the liability assumed by the reinsured under a policy of insurance that it has issued.

A reinsurance agreement is an agreement by which one insurance company transfers risk to another (buys reinsurance).

Reinsurance assumed is that portion of a risk that a reinsurer accepts from an original insurer (also known as a "primary" insurer) in return for a stated premium.

A reinsurance captive is a special-purpose insurer that operates only on a fronted basis, assuming risk from a ceding company.

Reinsurance ceded refers to that portion of a risk that an original insurer (also known as a "primary" insurer) transfers to a reinsurer in return for a stated premium.

A reinsurance commission is the percentage of premium paid to the reinsurance intermediary; a ceding company expense.