Glossary

Repatriation of dividends insurance is a political risk insurance that indemnifies the insured for financial loss incurred because of the inability to repatriate funds resulting from currency export restrictions.

Replacement cost is a property insurance term that refers to one of the two primary valuation methods for establishing the value of insured property for purposes of determining the amount the insurer will pay in the event of loss (the other valuation method is actual cash value (ACV)). Replacement cost is usually defined in the policy as the cost to replace the damaged property with materials of like kind and quality, without any deduction for depreciation.

The replacement ratio is a ratio used by life insurance companies to determine the amount of new insurance premium that must be developed to replace lost premium because of cancellations and policies being terminated through the payment of death benefits.

Reportable quantity (RQ) is the quantity of a hazardous substance that triggers reports under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Reported losses are paid losses plus case reserves.

Reporting form coverage is property insurance that allows an insured with fluctuating inventory values to establish a limit of insurance adequate to cover the highest possible exposed value but to pay a premium based on the actual values exposed.

A reporting lag is the span of time between the occurrence of a claim and the date it is first reported to the insurer.

A reporting policy is a policy that states premium based on the actual reported exposures.

Repossessed autos endorsement (CA 20 19) is an automobile policy endorsement providing coverage for autos that have become the property of the financing institution because of the failure of the purchaser to comply with the terms of the financing agreement.

Representation is a statement made in an application for insurance that the prospective insured represents as being correct to the best of their knowledge.