A type of insurance managed by an attorney-in-fact in which members pay premiums and share in losses equally. Membership is required for insurance.
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An association of individuals who agree to exchange insurance risks – each member of the association insures each of the other members and in turn is insured by each of the other members.
Tag: RAW
Reciprocal health agreements
UK agreements with other countries entitling travellers in those countries to obtain free or reduced rate medical attention under local national health provisions. As a travel policyholder bears the first portion of a medical expenses claim, the UK traveller should produce form E111 (obtainable from the Department of Social Security) to receive a full indemnity in the event of receiving treatment.
Reciprocal Insurance
A practice followed in some Insurance markets. Insurance provided by subscribers at a reciprocal exchange. Each subscriber agrees to become liable for his share of the losses and expenses of all subscribers and authorizes the attorney in fact to effect his exchange of Insurance with the other subscribers. A separate account is often maintained with each subscriber, to which are credited his premiums and his share of other income, and to which are debited his share of losses and other disbursements.
Reciprocal insurance exchange
Unrelated individuals who come together to insure each other. Under this type of arrangement, each person takes on a share of the risk. These individuals are known as subscribers, and the plan is administrated by an attorney in fact.
Reciprocity
MEDICAL,USA: 1. Mutual exchange of privileges or services. 2. In the Medicaid program, it applies to an individual who obtains medical services while out of the state in which he or she receives benefits. 3. In managed care plans, a member may receive treatment for illness or injuries from another prepaid plan while out of state.
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REINSURANCE: A mutual exchange of reinsurance between two or more companies.
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UK: Exchange of reinsurance business between reinsurers. Each accepts the cessions from the other to stabilise the accounts or reduce costs. Direct insurers may also enter into exchanging its home business with an equivalent amount of foreign business from another direct insurer. The reciprocity could be 100 per cent or a proportion of the business.
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REINSURANCE: Practice of requiring incoming Reinsurance in ex-change for Reinsurance ceded or vice versa based on either premium to premium or profit to profit.
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UK: the practice of requiring inwards reinsurance business in exchange for reinsurance ceded, the cedant only offering a share of its reinsurance to a reinsurer able and willing to offer suitable reinsurance business in return.
Reciprocity (Reinsurance)
The reciprocal placement of insurance. This is done so that the ceding company gives some of its reinsurance to a reinsurer. The reinsurer is, in turn, able to offer reinsurance.
Recital Clause
The opening clause of the policy reciting names of the parties and stating that the insured has applied for the contract of insurance. The clause is also called the ‘Preamble’.
Reckless disregard
Reckless disregard can be defined as stating something as a fact that the insured has no reliable knowledge about. The insured may state the sofa was worth $2,000 with having any true knowledge of its value. Reckless disregard ignores any potential consequences of stating a falsehood. If, on the other hand, the insured makes an innocent overestimate, the policy will not be void.
Reclamation bonds
A bond that guarantees that an institution will restore land that it has mined or otherwise altered, to its original condition.
Recognised
income or gains are said to be recognised when credit is taken for them in, for example, the life revenue account; recognised gains are not necessarily realised gains.