R

RACQ
The 'Regroupement des assureurs à charte du Québec' (RACQ), the association of chartered insurers in Quebec, includes thirteen companies and is a full member of the Canadian Life and Health Insurance Association (see CLHIA).

Rating
Determination of the premium owing for a given policy.

Registered Education Savings Plan (RESP)
A plan registered under the Income Tax Act allowing the participant to accumulate tax-sheltered amounts that are held in trust to be used to cover eligible postsecondary education costs for a beneficiary.

Registered Pension Plan (RPP)
A pension plan registered by the Registered Plans Directorate of the Canada Customs and Revenue Agency. An employer can offer this plan in the form of a defined contribution plan or defined benefit plan.

Registered Retirement Income Fund (RRIF)
A tax-deferral mechanism available to holders of a Registered Retirement Savings Plan (RRSP). Holders invest the amount withdrawn from their RSSP in this fund, from which they withdraw a certain fraction annually. The amount taken out becomes taxable.

Registered Retirement Savings Plan (RRSP)
A means by which individuals may defer taxes due on savings invested for their retirement. The funds are invested in a variety of investment instruments held in trust under the plan. Taxes due on the contributions made and return on investment are deferred until the funds are withdrawn upon retirement.

Registered Segregated Funds
Registered investment offering a principal guarantee at maturity or at death and a return based on the various types of investments made by the Fund Manager.

Reinstatement
The restoration of a lapsed policy (due to nonpayment of premiums) to full force and effect.

Reinsurance
A transaction whereby one insurer transfers a part of the risk it has underwritten to another insurer (the reinsurer).

Renewal
An agreement by which an obligation is extinguished and replaced by a new one.
Synonym: Novation.

Representative

Representatives (Quebec)
In Quebec, the professional designations that representatives are authorized to use are regulated by the Act respecting the distribution of financial products and services.
 

• Financial Security Advisor
  A financial security advisor is a representative in insurance of persons who offers individual insurance products directly to the public.
  
• Advisor in Group Insurance and Annuity Plans
  An advisor in group insurance and annuity plans is a group insurance representative who offers the group insurance of persons or group annuity products of one or more insurers.
  
• Group Savings Plan Representative
  A group savings plan representative offers shares or units in mutual funds.
  
• Securities Representatives
  Securities representatives include group savings plan representatives, investment contract representatives and scholarship plan representatives who act on behalf of a person registered as a full service broker or discount broker, as defined by the Securities Act. The securities representative acts on behalf of a single firm.
  
• Securities Dealer or Advisor
  Any person acting as a securities dealer or advisor must be registered as a dealer with an unrestricted practice.  If they do not intend to offer portfolio management services, they must apply for registration as a dealer with a restricted practice.
  
• Discount Broker
  A discount broker is a person who acts as an intermediary in securities trading without offering advice on the sale or purchase of securities.
  Note: For information specific to each province, visit CSA, the Canadian Securities Administrators.
  
• Financial Planner
  A financial planner specializes in financial planning. In Quebec, only individuals certified by the Institut québéquois des planificateurs financiers (IQPF) are authorized to engage in financial planning activities.
   

Representatives (outside Quebec only)
Not all professional designations used by representatives or advisors working in the area of finance outside Québec are subject to regulation. For more information, visit Advocis: Canada's largest membership association of professional financial advisors.

Retirement fund
A fund consisting of contributions made to a pension/retirement plan and investment income realized by these contributions, which together cover the benefits provided for by the pension plan.

Revocable Beneficiary
Individual designated as beneficiary of an insurance contract who can be removed without his/her consent.

Rider
Document appended to an insurance policy indicating an amendment to the contract. Synonyms: Policy Rider, Endorsement, Policy Endorsement.

Risk
Uncertainty as to the potential occurrence of an event or the date of its occurrence. In insurance, death is considered a certainty; it is the date of its occurrence that is uncertain.