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
Reinstatement of an insurance policy or bond to its original face amount (face of policy) after the payment by the insurer of a loss. The purpose of this type of coverage is to indemnify ...
To accumulate. For example, under one of the dividend options of a participating life insurance policy, dividends can accumulate at interest by leaving them with the insurance company; cash ...
Agency of the federal government formed as the result of bankruptcies of savings and loan associations during the 1930s. Insures deposits of customers up to $100,000 for each account. In ...
Modest amounts of coverage sold on a debit basis. The face amount is usually less than $1000. ...
Individual who assigns rights to a benefit. For example, a life insurance policy may be assigned as security for a loan made by the borrower. The policy protects the collateral creditor ...
Variation of group life insurance that covers a small group of persons who work for the same employer. With group life insurance, the employer owns the policy; with wholesale insurance, ...
Option under a participating life insurance policy by which the policy owner can elect to have the dividends purchase paid-up increments of permanent insurance. ...
The surplus resulting from an additional amount of capital necessary to act as a supplement to the reserves in the event of unforeseen contingencies that would impair the insurance ...
Provisions, usually requiring an additional premium, that are appended to an insurance contract. These include waiver of premium (WP), disability income (DI), accidental death clause, ...
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