Rate adjustment factor (RAF): Insurance companies can modify rates based on allowable case characteristics such as age bands, geographic location, health status and claims experience. Base rates can be lowered by 25% or increased by 10%.

Reasonable and customary fee: A reasonable fee is a charge that, in the context of the community, is fair. A customary fee is a charge or fee that falls within the customary range of charges or fees prevailing in a specific geographic area for the provision of a similar service, procedure or supply.

Replacement cost basis: The cost of replacing the appraised or inventoried property.

Risk management: A discipline that counters downside risks by reducing the likelihood, magnitude and unpredictability of losses and financing recovery from these losses and seizes upside risks by searching for opportunities and developing plans to more efficiently achieve an organization's nonprofit goals.