The early termination of an insurance policy by the insurer due to the discovery of a material representation by the insured. This term can also refer to the act of repudiating a contract, whether because of someone’s failure to perform as expected, or because the contract was signed under false pretenses or duress.
Insurance Encyclopedia
Research data assistance center
Centers for Medicare and Medicaid Services (CMS) contractor who provides free assistance to academic and nonprofit research interested in using Medicare and Medicaid data for research.
Research protocol
Document that outlines a strong research design, which clearly states the objectives, background, methods, and significance of the study being proposed.
Reservation of Rights
An arrangement whereby an insurer defends a case without commitment to provide coverage in the event that the facts disclosed during the trial reveal that the occurrence is not covered.
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An arrangement in which an insurer agrees to proceed with the defense of a case without commitment to provide coverage, in the event that the facts disclosed during the trial reveal that the occurrence is not covered.
Reserve
US:(1) an amount representing liabilities kept by an insurer to provide for future commitments under policies outstanding. (2) An amount allocated for a special purpose. Note that a reserve is usually a liability and not an extra fund.
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A sum set aside by a company to fulfill future claims.
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UK: an amount built up in the early years of a group of policies, when the level of premiums is greater than required to meet claims, expenses etc, and used to pay claims in later years when the premiums are less than required; often also referred to as a provision (see technical provisions and equalisation provision).
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US: An amount of money earmarked for a specific purpose. Insurers establish unearned premium reserves and loss reserves indicated on their balance sheets. Unearned premium reserves show the aggregate amount of premiums that would be returned to policyholders if all policies were canceled on the date the balance sheet was prepared. Loss reserves are estimates of outstanding losses, loss adjustment expenses (LAEs), and other related items. Self-insured organizations also maintain loss reserves.
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REINSURANCE: An amount which is established to provide for payment of a future obligation.
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MEDICAL,USA: Funds set aside and designated for future financial liabilities for life or health insurance such as to meet the difference between future benefits and future premiums. Also called prospective reserve or policy reserve . See policy reserve .
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Funds set aside for the purpose of meeting obligations as they fall due.
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The amount kept by the insurer to be able to cover all his or her debts. This term can also refer to an amount earmarked by the insurer for a specific purpose.
Reserve adjustment interest rate
In modified coinsurance, the interest rate used to calculate the amount payable by the cedant in consideration of the reserves being transferred back by the reinsurer. See ModCo.
Reserve days
See: lifetime reserve days (LRDs) .
Reserve for future contingent benefits
In health insurance, funds set aside for deferred maternity benefits and for other claims that have happened but are contingent on a future event.
Reserve premium/retained premium
The proportion of the reinsurance premium payable that has been retained by the cedant to assist in financing the reinsurer’s share of the cost of settling claims.
Reserve strengthening
Process of creating additional policy reserves.