Insurance Handbook - Alaska Department of Community and ...

the owner of a policy with cash values to
discontinue premium payments and to
use the policy’s net cash value to purchase
paid-up insurance of the same plan as the
original policy. (See Nonforfeiture options)
*REGISTERED PRINCIPAL
An officer or manager of a National Association
of Securities Dealers (NASD) member,
who is involved in the day-to-day operation
of the securities business, has qualified
as a registered representative, and has an
NASD Series 24 or 26 registration.
*REGISTERED REPRESENTATIVE
A sales representative or other person who
has registered with the National Association
of Securities Dealers (NASD), disclosed
the required background information, and
passed one or more NASD examination. A
registered representative engages in the
securities business on behalf of a NASD
member by soliciting the sale of securities
or training securities salespeople.
*REINSTATEMENT
The process by which an insurer puts back
into force an insurance policy that has
either been terminated for nonpayment of
premiums or continued as extended term
or reduced paid-up coverage.
REINSURANCE
Insurance bought by insurers. A reinsurer
assumes part of the risk and part of the
premium originally taken by the insurer,
known as the primary company. Reinsurance
effectively increases an insurer’s capital
and therefore its capacity to sell more
coverage. The business is global and some
of the largest reinsurers are based abroad.
Reinsurers have their own reinsurers, called
retrocessionaires. Reinsurers don’t pay policyholder
claims. Instead, they reimburse
insurers for claims paid. (See Treaty reinsurance;
Facultative reinsurance)
Glossary
RELATION OF EARNINGS TO
INSURANCE CLAUSE
A clause included in some individual disability
policies that limits the amount of
benefits that an insurer will pay when the
total amount of disability benefits from
all insurers exceeds the individual’s usual
earnings.
*RENEWABLE TERM
INSURANCE POLICY
A term life insurance policy that gives the
policy owner the option to continue the
coverage at the end of the specified term
without presenting evidence of insurability,
although typically at a higher premium
based on the insured’s attained age.
RENTERS INSURANCE
A form of insurance that covers a policyholder’s
belongings against perils such
as fire, theft, windstorm, hail, explosion,
vandalism, riots, and others. It also provides
personal liability coverage for damage the
policyholder or dependents cause to third
parties. It also provides additional living
expenses, known as loss-of-use coverage,
if a policyholder must move while his or
her dwelling is repaired. It also can include
coverage for property improvements. Possessions
can be covered for their replacement
cost or for their actual cash value, which
includes depreciation.
REPLACEMENT COST
Insurance that pays the dollar amount
needed to replace damaged personal
property or dwelling property without
deducting for depreciation but limited by
the maximum dollar amount shown on the
declarations page of the policy.
REPURCHASE AGREEMENT/‘REPO’
Agreement between a buyer and seller
where the seller agrees to repurchase the
securities at an agreed upon time and
I.I.I. Insurance Handbook www.iii.org/insurancehandbook 117