Ratios

The following ratios are important for monitoring performance or calculating premiums: 1. Burning ratio. Insurance claims as a percentage of total premiums for current policies. 2. Claims (or loss) ratio. Incurred losses in relation to earned premiums. 3. Expense ratio. Insurers’ total expenses in relation to written premiums. 4. Combined or composite ratio. Sum of (2) and (3), a figure below 100 per cent indicating that an underwriting profit has been achieved.

Ratios Audit

Ratios derived from an Insurer’s financial statement that are useful in assessing its financial strength. Audit ratios are part of the Insurance regulatory information system.

Raw materials

Materials acquired for manufacturing purposes. The item on raw materials in a manufacturer’s fire insurance is valued at market value immediately prior to the loss. Once worked upon but not yet incorporated in a finished product, the materials become part of ‘work in progress’ which takes account of labour costs and other direct expenses incurred.

RC

HCPCS Level II modifier that may be used with CPT or HCPCS Level II codes indicating a specific vessel (right coronary artery) in a stent placement, balloon angioplasty, and/or atherectomy.

RD

HCPCS Level II modifier that may be used with CPT or HCPCS Level II codes indicating drug given to beneficiary but not administered “incident-to.”