Rate Class to Risk Definitions

A B C D E F G H I J K L M N O P R S T U V W Y
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Rate Class: The premium class determined by the underwriting process wherein the health and other conditions and histories of the applicant are evaluated.
Rated: A term used to describe a policy that is evaluated and placed in a rate category that is more expensive than standard due to findings in the underwriting process and specific applicant evaluation.
Reinstatement: The process of putting a policy in force after it has lapsed by bringing the premium payments current.
Renewable Term Life Insurance: A type of life insurance policy that is renewed annually and the premium is adjusted, usually higher, each year.
Replacement: The process of canceling one policy and obtaining another policy to replace it usually to obtain better coverage or lower rates.
Representation: Written or verbal statements made during the application process usually relative to the medical or other condition or history of the applicant.
Revocable Beneficiary: A person designated as beneficiary that may be removed or changed at the discretion of the policyowner.
Rider: An endorsement to an insurance policy that provides additional coverage usually for an increased charge. A rider may also remove or change a condition in the policy.
Risk: For insurance purposes, risk refers to the probability that a given covered event, such as death or a car accident, will occur. It is the probability that the insured will incur financial loss as a result of a specified occurrence, as in damage to property, personal injury or loss of life.