Volume risk

The effect of demand for a product or service on revenue. Energy sector sales fall during warm winters regardless of price. Heating fuels are bought because it is cold not because prices are low. Weather derivatives are used as a hedge against the volume risk.

Volume Weight

Used when calculating air freight when the size of the carton is greater than the average weight calculated by multiplying the length times the width times the height and dividing by 166.

Voluntary agreement

Contracts between the Centers for Medicare and Medicaid Services (CMS) and various insurers and employers to exchange Medicare information and group health plan eligibility information for the purpose of coordinating health benefit payments.

Voluntary assumption of responsibility test

Following Henderson v. Merrett Syndicates Ltd (1994), this test has been accepted as the correct basis of liability where issues of a duty of care and economic loss arise as they do in professional negligence cases. The giving of advice and providing a service call of a duty of care when the party concerned assumes or undertakes a responsibility to another. In this case the managing agents at Lloyd’s owed a duty of care to names who had suffered disastrous financial losses following the negligent management of the syndicates.

Voluntary Compensation Insurance

A type of Insurance found in some countries by which the Company agrees to pay injured employees who are not subject to the compensation law benefits which they would have received if they were covered. In some countries the compensation law applies only to employees engaged in certain hazardous occupations. Under a voluntary compensation Policy and employee engaged in a non-hazardous occupation could receive the same benefits as are provided by the compensation law.