| Rate making | The art of fixing premium |
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| Readjustment period | In the event of death claim, the family adjusts to new life in a period of 1-2 years, and must have regular cash flow of annual income. |
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| Realised yield to maturity (YTM) | It assumes that the cash flows received through the life of a bond are reinvested at a rate equal to the YTM. |
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| Red return | Formula: 1+ Nominal return |
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| Registrars & transfer agents | They handle investors-related services. |
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| Regression analysis | Method of characterizing the relationship between two or more variables, and then using this characterization a a predictor. |
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| Reinstatement clause | A lapsed policy can be revived subject to arrears of premium and satisfactory medical report. |
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| Reinsurance | A part of large risk is transferred to another insurance company for sharing loss, if any. |
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| REITs | Real Estate Investment Trusts |
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| Renewable Term Insurance | A type of term insurance which includes a renewal provision that gives the policy owner the right to renew the insurance coverage at the end of the specified term without submitting evidence of insurability. |
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| Renewal Provision | (1) A term life insurance policy provision that gives the policy owner the right to continue the insurance coverage at the end of the specified term without submitting evidence of continued insurability. (2) A provision in an individual health insurance policy describing the circumstances under which the insurance company may refuse to renew the coverage, may cancel the coverage, or may increase the policy's premium rate. |
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| Repos | Repurchase agreement or Ready Forward. It involves a simultaneous sale and repurchase agreement. |
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| Representation | Statements by an insured in a proposal to the insurer. |
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| Res ipsa loquitur | The things speak for themselves. |
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| Reserves and Surplus | These comprise retained earnings and non-earnings items like share premium and capital subsidy. |
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| Retention | A ceding company retains a part of large risk called retention. |
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| Retention | An insurance company retaining a part of the net amount of risk which is not insured. |
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| Retrospective rating | insureds loss-experience during the current policy period determines the actual premium paid for that period. |
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| Return on Assets (ROA) | Formula : Profit after tax/Average total assets |
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| Return on Capital Employed (ROCE) | Fromula: Profit before interest and tax/ Average total assets |
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| Return on Equity (ROE) | Formula: Equity earnings/ average equity |
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| Reverse Mortgage Scheme | A senior citizen mortgages his house with bank for raising sources of income, which are exempt from IT. |
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| REVIVAL | It is the restoration of a lapsed policy. The revival of a lapsed policy by the payment of all outstanding premiums. Depending on the period the premiums were outstanding, an interest may be charged. |
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| Rider | A document allowing the modification of the policy or amending the original contract by increase or decrease in benefits or waiver of a condition or coverage. |
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| Rider | An add-on document that supplements the benefit of the insurance contract. |
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| Risk | Any estimate of loss. |
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| Rule of 72 | The doubling period is found by dividing 72 by the interest rate |
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| Rupee cost averaging | Where the investor keeps on making investments (SIPs) regularly and benefits as the investor buys more units when the price is low and fewer units when the price is high. |
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