A clause, most often seen in commercial policies, stipulating that the policyholder must report the property’s value to the insured at certain predetermined times. This is done to ensure that coverage is sufficient to cover the value of a potential loss. The policyholder may be assessed a penalty for failing to regularly report the accurate value.
Insurance Encyclopedia
Full Signed Line
Indicates that the Reinsurance covers the whole of the line signed on the original Insurance.
Full theft cover
Theft cover that goes beyond ‘forcible or violent entry or exit to or from premises’ to cover any dishonest appropriation. Full theft cover is not normally available to shops or hotels, which are susceptible to casual theft.
Full Value Declared (FVD)
A notation on air waybill indicating that a specific value has been declared to the carrier for the carriage of the merchandise.
Full Value Insurance
An insurance where the insured is required to warrant that the sum insured represents the full value of the insured property.
Full value insurances
Property insurance in which the sum insured represents the full value at risk. Where the insured completes a proposal and signs a declaration he may ‘warrant’ that this is the case.
Full Value Reserve
An undiscounted provision for the payment of outstanding losses, ALAE or LAE; distinguished from discounted reserve.
Full Written Line
Indicates that a Reinsurance order is for the full line written on the slip covering the original Insurance; effectively this is the same as G.S.L., because the written line will be transposed to a signed line when the original risk is closed.
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See: “Reinsurance, Full Written Line.”
Full-Reporting Clause
Property Insurance provision under which an insured reports periodically the fluctuating value or amount of insured property and pays premiums on these reported values. The insured is penalized for reports which are tardy or which understate values. Also called “Honesty Clause.”
Full-risk capitation
See: global capitation .