Glossary Of Insurance Terms - Ohio Insurance Institute
Glossary Of Insurance Terms - Ohio Insurance Institute
Glossary Of Insurance Terms - Ohio Insurance Institute
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<strong>Glossary</strong> <strong>Of</strong> <strong>Insurance</strong> <strong>Terms</strong><br />
(Rev. 04/07)<br />
V<br />
Valuation:<br />
The process of determining a company’s liabilities under its policy obligations is known as policy valuation. The process of determining the<br />
value of a company’s investments is known as asset valuation. Minimum valuation standards are usually prescribed by state laws.<br />
Valued Policy:<br />
An insurance policy under which the insurance company is obligated to pay the full amount of the policy written to insure real property against<br />
loss by fire (and, sometimes, other perils) when the property insured is totally destroyed. Several states have laws that are known as Valued<br />
Policy Laws.<br />
Vandalism:<br />
Willful, intentional, often random, destruction or defacement of private or public property. <strong>Insurance</strong> against the vandalism peril is usually<br />
combined with the malicious mischief peril.<br />
Variable Life <strong>Insurance</strong>:<br />
A type of permanent life insurance in which the death benefit and the policy value vary in relation to the investment experience of a selected<br />
fund in which the policy values are invested.<br />
Verbal Threshold:<br />
In no-fault auto insurance states with the verbal threshold, victims are allowed to sue in tort only if their injuries meet certain verbal descriptions<br />
of the types of injuries that should, as a matter of policy, render one eligible to seek to recover for pain and suffering in a cause of action<br />
in tort.<br />
Viatical Settlement Companies:<br />
<strong>Insurance</strong> firms that buy life insurance policies at a steep discount from policyholders who are often terminally ill and need the payment for<br />
medications or treatments. The companies provide early payouts to the policyholder, assume the premium payments, and collect the face<br />
value of the policy upon the policyholder’s death.<br />
Void:<br />
A policy contract that for some reason specified in the policy becomes free of all legal effect. One example under which a policy could be<br />
voided is when information a policyholder provided is proven untrue.<br />
Volatility:<br />
A measure of the degree of fluctuation in a stock’s price. Volatility is exemplified by large, frequent price swings up and down.<br />
Volcano Coverage:<br />
Most homeowners policies cover damage from a volcanic eruption.<br />
Volume:<br />
Number of shares a stock trades either per day or per week.<br />
Voluntary Market:<br />
The market where a person seeking insurance obtains it with no help from the state, through an insurer of his or her own selection.<br />
OII <strong>Glossary</strong> <strong>Of</strong> <strong>Insurance</strong> <strong>Terms</strong> 44