Valuation Method
Means of determining that a loss has occurred and setting an economic value on it so that a claim can be paid. When an insured suffers a loss, an adjuster must determine that it actually occurred, that it was covered by insurance, and the value of the lost or damaged property. The adjuster, with the help of the insured, determines the cost to repair or replace the covered property. The adjuster computes actual cash value, or replacement cost, minus depreciation. For indirect losses, such as business interruption, the adjuster must make rough estimates, and then must consider COINSURANCE and adjust claims payments for it.
Popular Insurance Terms
Decision in the absence of a plaintiff or defendant at the specified court time. ...
Method of premium payment under which a temporary premium is charged based on projected loss experience. At the end of the year this premium is adjusted to reflect the actual loss ...
Type of charitable remainder trust (CRT) that pays interest income for life or for a specified term to a non charitable beneficiary. The remainder of the interest is received by a charity. ...
Frequency of death. ...
High severity loss that does not lend itself to accurate prediction and thus should be transferred by the individual or business to an insurance company. ...
Same as term Exclusions: provision in an insurance policy that indicates what is denied coverage. For example, common exclusions are: hazards deemed so catastrophic in nature that they are ...
Life insurance under which an insured receives the face value of a policy if the individual survives the endowment period. If the insured does not survive, a beneficiary receives the face ...
Coverage for property loss liability as the result of negligent acts and/or omissions of the insured that allows a spreading fire to damage others' property. Negligent acts and omissions ...
Person, business, or organization specified as the insured (s) in a property or liability insurance policy. In some instances, the policy provides broader coverage to persons other than ...
Have a question or comment?
We're here to help.