The FSA controlled function of acting in the capacity of director or senior manager responsible for either or both the apportionment function and the oversight function. The function entails the allocation of significant responsibilities among senior managers and overseeing the establishment and maintenance of the firm’s systems and controls. Where there is a chief executive he/she must be one of the individuals appointed unless the functions are allocated to someone more senior.
Insurance Encyclopedia
Apportionment Clause
Clause in a property Insurance Policy which distributes the Insurance in proportion to the value of the properties insured by each Policy against a peril causing a loss.
Apportionment clause (Property Insurance)
A clause that requires claims on a property to be divided among all insurance policies covering that property.
Apportionment of value
In cargo insurances different species may be insured under a single valuation. In a partial loss of cargo the insurer is liable for such proportion of the insured value as the insurable value of the part lost bears to the insured value as a whole (Marine Insurance Act 1906, s.72). In practice, the apportionment of the insured value is normally based on the invoiced value of the various goods.
Appraisal
Professional evaluation to determine a property’s insurable value or the amount of a loss.
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An assessment to determine the value of an item or property to obtain adequate insurance coverage or determine replacement value.
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A determination of the value of property for the purposes of determining the proper amount of insurance to be bought or in adjusting a loss. In event of a loss and the carrier and insured disagree on the amount of the loss, either may request an appraisal. Each party then selects an appraiser, and the appraisers select an umpire. An agreement between two of the three determines settlement.
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Survey or examination of real or personal property to determine its value. In real estate transactions, the appraisal normally measures the market value of the property. In Insurance, appraisals normally measure the actual cash value, replacement cost, or other insurable value of property. Refer “Value, actual cash value,” and “Replacement Cost.”
Appraisal Clause
A clause in an Insurance Policy which provides that the insured or Insurance Company shall have the right to demand an appraisal to fix or determine the amount of damage in terms of money. This would also refer to loss as well as damages.
Appraisal clause (Property Insurance)
Clause that gives either party (the insured or the insurer) the right to an appraisal to determine the value of a loss.
Appraisal Surplus
The excess of appraised values over book values.
Appraised value
Value of an object or location as determined by an independent appraiser. This value could be market value, replacement cost value, or utility value.
Appraisement, Customs
Appraisement means to fix the price or arrive at the price of the goods for levy of duty. The assessed price or value has to be at the place of delivery, hence it will include all costs, Insurance, freight and landing charges.