RATE - The amount, established or reviewed by government, used to calculate premiums to be paid on an auto insurance policy.
REGULAR INSURANCE MARKET - When the insurance business environment is operating effectively, low-risk consumers find that auto insurance is available to them from any insurance company and at a reasonable price.
REGULATOR - The federal, provincial or territorial government agency responsible for the control and regulation of the insurance industry under its jurisdiciton.
REINSTATEMENT - The reactivation of suspended or cancelled insurance.
REINSURANCE - Insurance purchased by an insurance company from another insurance company (reinsurer) to provide it protection against large losses on cases it has already insured. Essentially, insurance for insurance companies.
RENEWAL - A certificate which attests to the fact that an insurance policy has been extended for another term.
REPLACEMENT COST - The cost of replacing property without deduction for depreciation.
RESIDUAL MARKET - A system through which insurance is made available to customers that represent unusually high risks.
RETURN PREMIUM - A refund to the policyholder of part of the premium he has paid because of cancellation, rate reduction, reduction in amount of insurance, or some similar reason.
RIDER - An amendment to an insurance policy. It is used to add or remove coverage.
RISK - A chance of loss or injury for which an insurance claim may be submitted. For a risk to be insurable, related events that could result in a claim must be unexpected. For example, the possibility that a visitor to a policyholder’s home will injure himself or herself by falling on the steps is an insurable risk, because such a fall would be unexpected. Expected losses, such as the gradual wearing-out of clothes or the rotting of fruit, are not insurable risks.
ROBBERY - The taking of another's property by force or threat of force.