Glossary

Assumption of risk of loss by means of noninsurance, self-insurance, or deductibles.

Retention ability is the amount of aggregate incurred losses that an insured can retain in any one financial reporting period without creating an adverse impact on cash flow or earnings.

A retention plan is a type of dividend plan most often used only in connection with workers compensation insurance.

Retired directors liability policies are insurance policies designed to cover individuals who at one time served yet are now no longer serving on a corporate board of directors.

Retirement annuity is a form of deferred annuity that provides for retirement income.

A retirement income policy is a life insurance policy providing for income during retirement age based on a percentage of the face amount for monthly income.

Retraction provisions are clauses contained in media professional liability policies stating that if an insured is sued (or threatened with suit) as a result of information that has been published but that is untrue or incorrect, the insured is required to publish a timely retraction of these misstatements.

Retroactive conversion refers to the conversion of term life insurance into whole life insurance at the original age rather than attained age.

A retroactive date is a provision found in many (although not all) claims-made policies that eliminates coverage for claims produced by wrongful acts that took place prior to a specified date, even if the claim is first made during the policy period.

Retroactive insurance refers to insurance purchased to cover a loss after it has occurred.