Apportionment and oversight function

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.

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.