An amount collected by an Insurer from a third party who was responsible for the loss in respect of which the Insurer had paid a claim. Recoveries may be made from several different sources, e.g., reinsurers, other insurers, salvage, liable third parties.
Tag: RAW
Recovery Agencies
After a claim is settled, the insurer by virtue of the Letter of Subrogation gets all the rights and remedies which are available to the assured against third parties. The main right herein is recovery of the loss amount from the carriers. To avoid complexities of law the insurer usually engage the services of Recover Agencies who often work on a NO CURE, NO PAY basis as far as recovering from trucking companies are concerned. Recoveries from an airline is usually easier. In large cases however especially with shipping companies and in case of truck hijacks recovery suits need to be filed for which the services of lawyers are utilized. Some Companies have started having their own separate recovery departments.
recovery audit contractor (RAC)
Demonstration project developed from the Medicare Prescription Drug Improvement and Modernization Act. States that participated in this project for three years (2006-2008) have been California, Florida, and New York.
Recovery of funds
Monies obtained from a successful judgment, settlement, erroneous, or conditional payment. Also called recovery of money .
Recruiting
A general term for the hiring process used to find new employees. In the insurance business, this term is usually used to refer to the process of hiring agents.
Rectification
Process of rectifying a policy document that fails to represent the terms agreed between the parties. If an insured feels that a mistake has been made in the policy he may seek rectification and apply to the court if the insurer refuses. To succeed he will have to show that the policy does not represent the agreement and is not true evidence of the contract.
***
Correction of a mistake made in drawing up a written contract.
Recurrence
In workers’ compensation cases, refers to symptoms that occur or may have been expected to occur of a previous industrial injury or illness without relationship to the current employment. This would not constitute a new injury.
Recurrent Disability
Disability resulting from the same or a related cause as a prior disability.
Recurrent disability (Health Insurance/Life Insurance)
A disability that stems from the same cause as a previous disability, or a related cause.
Recurrent disability clause
Provision in an insurance policy that details the benefits payable if an insured becomes disabled again by the same illness or condition when benefits previously were paid.