A letter of credit that allows the exporter to receive a percentage of the face value of the letter of credit in advance of shipment. This enables the exporter to purchase inventory and pay other costs associated with producing and preparing the export order.
Insurance Encyclopedia
Red line clause
Cargo policy clause printed in red to remind the insured of his obligation to preserve his right of recovery against a carrier or bailee for the benefit of the insurer.
Red-Lining
Discriminating unfairly against a risk solely because of its location. An example would be refusing to insure a risk because the building is located in a depressed area or location. Sometimes these areas are referred to as blackout areas.
Red-lining (Property Insurance)
A discriminatory practice wherein a risk is deemed uninsurable or charged a higher rate due to its location.
Redacted
Identifying information replaced with or XXX, or blacked out with a permanent marker throughout a patient’s medical documentation such as patient’s name, Social Security number, insurance number, city, facility’s name, or physician’s name.
Redemption
Paying off a loan and therefore recovering the security, such as a mortgage.
Redetermination process
In the Medicare program, this was formerly referred to as the appeal process . If a patient disagrees with any decision about health care services or if Medicare does not pay for an item or service, the initial Medicare decision may be reviewed again using this process. It has five levels: (1) redetermination (telephone, letter, or CMS-20027 form); (2) hearing officer (HO) hearing or reconsideration; (3) administrative law judge (ALJ) hearing; (4) Departmental Appeal Board review; and (5) judicial review in U.S. District Court.
Redlining
Civil rights issue wherein an insurance company denies coverage to questionable or high risks in a given geographical area.
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Unfair discrimination based not on the risk’s characteristics but on its location. The term is commonly associated with an insurer’s refusal to consider insuring any home or business within a specific area marked by a line drawn on a map.
Reduced paid-up insurance (Life Insurance)
A policy whose cash value can be used to buy paid-up insurance in the highest amount it can afford.
Reduced paid-up insurance option
See: nonforfeiture reduced paid-up benefit .