What Is Regulatory Risk? Regulatory risk is the risk that a change in laws and regulations will materially impact a security, business, sector, or market. A change in laws or regulations made by the government or a regulatory body can increase the costs of operating a business, reduce the attractiveness of an investment, or change the competitive
What Is Regulatory Capture? Regulatory capture is an economic theory that says regulatory agencies may come to be dominated by the industries or interests they are charged with regulating. The result is that an agency, charged with acting in the public interest, instead acts in ways that benefit incumbent firms in the industry it is supposed
What Is Rehypothecation? Rehypothecation is a practice whereby banks and brokers use, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of borrowing or a rebate on fees. In a typical example of rehypothecation, securities
What Is the Reykjavik Interbank Offered Rate (REIBOR)? The Reykjavik Interbank Offered Rate (REIBOR) is the formal interbank market reference rate used to set rates for short-term loans at Icelandic commercial and savings banks. It is a weighted average of market rates offered by banks to each other for short-term funding. REIBOR is similar to
What Are Reimbursable out-of-Pocket Costs? Reimbursable out-of-pocket costs are things that an employee pays for upfront and then are paid back for by their company. These out-of-pocket expenses are often work-related and may be tax-deductible for employees if they are not reimbursed. Key Takeaways Reimbursable out-of-pocket costs occur when you pay for something with your
What Is a Reimbursement Plan? A generic term for several types of plans that reimburse employees for various types of work-related expenses. These expenses can include medical, auto, travel, meal, and entertainment costs. Reimbursement plans are instituted by employers in order to allow them to pay for a more accurate amount of employee expenses incurred
What Is Reinstatement? Reinstatement is the restoration of a person or thing to a former position. Regarding insurance, reinstatement allows a previously terminated policy to resume effective coverage. In the case of nonpayment, the insurer may require evidence of eligibility, such as an updated medical examination for life insurance, and full payment of outstanding premiums.
What Is a Reinstatement Clause? A reinstatement clause is an insurance policy clause that states when coverage terms are reset after the insured individual or business files a claim due to previous loss or damage. Reinstatement clauses don’t usually reset a policy’s terms, but they do allow the policy to restart coverage for future claims. Key
What Is Reinsurance? Reinsurance is also known as insurance for insurers or stop-loss insurance. Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim. The party that diversifies its insurance portfolio
What Is a Reinsurance Assisted Placement? A reinsurance assisted placement is a new reinsurance contract initiated by a reinsurance company. Reinsurance is insurance for insurers (also called stop-loss insurance). A reinsurance company is one that provides financial protection to insurers. Reinsurers handle risks—namely, a major claims event—that are too large for insurance companies to handle on their own. While
