Glossary

Representations and warranties insurance refers to a form of coverage designed to guarantee the contractual representations made by sellers associated with corporate mergers and acquisitions.

Reproduction cost refers to the cost to duplicate an item exactly by using materials, artistry, and other expertise comparable to those used in the original.

The reptile theory is a strategy, typically used by the plaintiffs' bar, to influence a jury outcome by focusing the jury's reaction to instinctively favor safety and survival of their families and community (versus plaintiff's actual injuries) by demonstrating the defendant's conduct endangers their families and community as a whole.

The risk that negative publicity regarding an institution's business practices will lead to a loss of revenue or increased litigation.

A request for proposal (RFP) is a document used to secure proposals for insurance, risk management or other services.

With respect to a directors and officers (D&O) liability insurance policy, rescission is a declaration by an insurer that the policy was never in effect, the result being that coverage for a claim, when tendered by a corporate organization to an insurer, is not covered.

A reservation of rights is an insurer's notification to an insured that coverage for a claim may not apply.

A reserve is an amount of money earmarked for a specific purpose.

Amounts that are increases in outstanding loss reserves that cannot yet be formally justified but which are known, usually from experience, and are going to be required.

A residence employee is an employee of an insured (or an employee leased to an insured by a labor leasing firm) whose duties are related to the residence premises or one who performs comparable (and nonbusiness) duties elsewhere, as defined in the homeowners policy.