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valued policy meaning

  "valued policy" in a sentence
  • [Business]
    noun [C]

    (Insurance )

    a type of insurance policy in which the value of the items insured, and the amount that will be paid if a claim is made, is agreed in advance


  • [Economics]
    An insurance policy in which the value of the subject matter is agreed when the cover starts. As a result, the amount to be paid in the event of a total-loss claim is already decided and does not need to be negotiated.

    Compare:

    unvalued policy.


  • [Law]
    An insurance policy that specifies the value of the property insured as agreed between the parties. A policy is not valued merely because it specifies an amount as the sum insured, for that is no more than an estimate of value by the person insured. The essence of a valued policy is that it is based on an agreed valuation, which is conclusive; the insured will recover its full amount even if this exceeds the actual value of the property at the time of loss.

Examples

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  1. valued policy insurance
  2. One type of cash-value policy is whole life, which has a guaranteed death benefit.
  3. Say you made a mistake and bought a cash-value policy when you were quite young.
  4. Furthermore, half of all cash-value policies are dropped within 10 years, Hunt said.
  5. A cash value policy pays the cost for replacement minus depreciation, according to the Insurance Information Network.

Related Words

  1. value-laden meaning
  2. value-stream analysis meaning
  3. value-subtracting industry meaning
  4. value-system meaning
  5. valued meaning
  6. valueless meaning
  7. valuelessness meaning
  8. valuer meaning
  9. values meaning
  10. valuta meaning
PC Version