| rate |
the sum charged per unit at risk by which the premium is calculated,
often shown as a perentage |
|
| regulation |
a principle, rule or law designed to control or govern conduct |
|
| reinstatement |
the making good of damaged property; the restoration of the sum
insured after settlement of loss on payment of an
additional premium |
|
| reinsurance |
when an insurance company purchases insurance for the risks
they cover in order to share the financial burden or loss |
|
| renewal |
the process of continuing insurance for a further period after the first or
current period of cover has ended |
|
| replacement cost |
the value of property as indicated by the current new purchase
price of a similar article |
|
| representative |
Any person who renders a financial service for or on behalf of a financial services provider, in terms of conditions of employment or any other mandatory agreement, but excludes a person rendering clerical, technical, administrative, legal or accounting service, which service does not require judgment on the part of that person, or does not lead a client to any specific transaction in respect of a financial product in response to general enquiries. |
|
| retained profit |
(Retained earnings, retained income)
Retained profit is the final amount of profit remaining in the company for reinvestment after paying dividends.
[Retained profit = NPAT – Dividends] |
|
| retention limit |
the maximum liability that an insurer wishes to keep for his
own account in respect of a particular risk |
|
| return on equity, roe |
(Return on ordinary shareholders’ equity)
ROE is the after interest and tax return on the total ordinary equity of the business.
[ROE = Net income]
[100/Closing ordinary equity] |
|
| return on net assets, rona |
(Return on capital employed, ROCE)
RONA is operating profit on net assets.
[RONA = EBIT]
[100/Closing net assets] |
|
| risk |
the subject matter of an insurance contract; the possibility of a loss against
which insurance is taken out |
|
| risk management |
the business discipline applied by large commercial and
industrial organisations to manage those risks that can cause losses |
|
| risk transfer mechanism |
risk is taken away from one person (the insured)
and given to another (the insurer) |
|
 |
