A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Apportionable annuity

A life annuity under which the annuity is payable up to the date of death of the annuitant, i.e. payment is made on a pro rata basis for the period between the last regular payment and the date of death. Under an annuity curtate, no account is taken of this period as the annuity terminates on the last payment date preceding death.

Apportionment

In workers’ compensation cases, the process of determining if some portion of an injured worker’s permanent disability is due to a cause other than the current injury. This is an estimate of the degree of either occupational or nonoccupational factors that may have contributed to the impairment. Apportionment applies only to permanent disability.

***

The method of dividing a loss among insurers in the same proportions as their participation when two or more companies cover the same loss.

***

The method of dividing a loss among multiple insurers that cover the same loss.

****

A method of dividing a claim among more than one insurance company.

 

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.

****

An assessment to determine the value of an item or property to obtain adequate insurance coverage or determine replacement value.

****

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.

****

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.