Rate
The cost of a unit of insurance as determined by insurance companies and state regulators. The rate serves as the basis for the premium.
Rated policy
A policy issued at a higher premium to cover a person classified as a greater-than-average risk, usually because of impaired health or a dangerous occupation or hobby.
Real property
Land and most things attached to the land such as buildings and vegetation.
Referral
A process by which the primary care physician makes a request to a managed care plan on behalf of the enrollee to receive medical care from a nonparticipating provider or specialist.
Reinsurance
An agreement between two or more insurance companies by which the risk of loss is proportioned. Thus the risk of loss is spread and a disproportionately large loss under a single policy does not fall on one insurance company. Acceptance by an insurer, called a reinsurer, of all or part of the risk of loss of another insurance company. An insurance company issuing an automobile liability policy, with a limit of $100,000 per accident may reinsure its liability in excess of $10,000. A fire insurance company which issues a large policy generally reinsures a portion of the risk with one or several other companies.
Replacement cost on contents
This additional coverage pays for your losses on the basis of how much it would cost to replace or repair the item at current costs without deducting for depreciation. If the item is not replaced or repaired, only the actual cash value is payable.
Residential Care Apartment Complexes (RCAC)
These facilities are certified by the Department of Health and Family Services (DHFS). RCACs are covered only if your policy identifies these facilities as a covered benefit and the facility has been certified as a RCAC by DHFS.
Respite care
The provision of personal care, supervision, or other services to a functionally impaired person in order to temporarily relieve a family member or other primary caregiver from caregiving duties. Respite care services are usually provided in the impaired person's home or in another home or homelike setting, but may also be provided in a nursing home.
Restoration of benefits
If you collect benefits from a policy and then recover to the point where you are not receiving care qualifying you for benefits for a certain period of time, you can have those benefits restored back to the original level. Look to see if this is a provision in the policy or if it is available as a rider for an additional premium.
Return of premium
A rider that provides that if you die after being insured for a specified period or if you have paid premiums for a specified period, the insurance company will return premiums paid minus any benefits paid.
Rider
A document or form containing special provisions that are not contained in the policy contract. Such forms are to be added or attached to the policy.
Risk
This word has two meanings for insurers: (1) the chance of loss such as from a peril; and (2) the person or entity that is insured by a policy.
Risk contract
A contract payment methodology between the federal Centers for Medicare & Medicaid (CMS) and a managed care organization (for example, an HMO) that requires the delivery of at least all Medicare-covered services to members as medically necessary in return for a fixed monthly payment from the government and sometimes an additional fee paid by the enrollee. The managed care organization is then liable for those contractually offered services without regard to cost.

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