Rules Rules in IPRU (INS) showing how, for required minimum margin purposes, an insurer’s assets must be valued. Generally assets are valued at market value as prescribed in the rules but insurers must now apply the resilience test as a safeguard against changes in value of assets. Where an asset cannot be valued in a prescribed way it must be omitted from the margin of solvency calculation. The rules restrict the proportion of total assets held in any one asset or asset class. The assets eligible to cover solvency requirements comprise three groups: those that may be accepted without limitation; those subject to some limitation; and those acceptable only with FSA approval.
Tag: RAW
Valuation or Valuing an Owner’s Direct Property Loss Exposure
Irrespective of the property is real or personal, several basic measures of value are recognized by valuers, appraisers and other professionals working in this field. For personal property, market value is the preferred method whereas for insurance purpose the preferred ones are New Replacement Cost or New Replacement Cost less Physical Depreciation and Obsolescence.
Valuation period
Period of years that is considered as a unit for purposes of calculating the status of a trust fund.
Valuation premium
Annual net premium used to calculate reserves by insurance companies (e.g., to describe the generally accepted accounting principles [GAAP] net premium).
Valuation report
Report on an actuarial valuation. Also called an actuarial report.
Valuation Reserve
A reserve against the contingency that the valuation of assets, particularly investments might be higher than what can be actually realized or that a liability may turn out to be greater than the valuation placed on it.
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A reserve kept in case a liability is found to be valued at more than the estimated value placed on it, or that assets are valued higher than expected.
Valuation-linked scheme
A fire insurance scheme under which the insured chooses an inflation rate for the policy year and for each year the work of reinstatement may be necessary.
Value
Accepted principle, standard, or quality regarded as worthwhile or desirable.
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UK: The worth of something in money terms. The standard fire policy offers to pay the insured the ‘value of the property’ and the average clause refers to the ‘value of the property at the time of fire’. Following the rules of construction the term will be given its ordinary meaning and the word will be given the same meaning wherever it appears in the policy unless a contrary intention is shown by express words or definitions contained in the policy. Under unvalued policies value generally means market value unless the policy is written on a reinstatement basis. Marine insurance policies are generally issued on a valued policy basis.
value added network (VAN)
Vendor that facilitates transmission of electronic data interchange (EDI) data communications and translation services among multiple trading partners.
value added tax (VAT)
Amount of money levied on the increment of value that is added to a product at each stage of the production process. It is similar to a sales tax and is sometimes referred to as a consumption tax .