1. A statement or certificate confirming the value of items of insured property, usually prepared by an independent professional. 2. In life insurance this is the annual assessment of the insurer’s assets and liabilities in the manner required by the valuation regulations. 3. An actuarial valuation when an actuary compares pension scheme assets and liabilities. He works out the level of contributions required to create sufficient money to ensure that the pensions due to members will be funded. In the case of defined benefit schemes, there must be an actuarial valuation every third year.
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A general term used to refer to the approximation of an items value. This is usually done through an appraiser.
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(i) Process of placing monetary value for an item of property, a claim, or some other legal interest (ii) Monetary value of something.
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To estimate the value of a piece of property usually by considering its replacement cost or its actual cash value. Factored into the estimate is any depreciation or wear and tear.

Provides consistent basis for determining insured value of a shipment under an open cover relating to cargo at the time the risk attaches.
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(i) A clause in a hull Policy which requires that the cost of recovery and repair would be compared, not with the repaired value, but with the insured value to established a constructive total loss. (ii) Valuation clause in a cargo open Policy/cover to set out a formula for the calculation of in a cargo open Policy/cover to set out a formula for the calculation of the insured value of goods where the consignment is declared after loss.
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A stipulation listing the value of items. This clause effectively makes the policy a valued policy.

Date used for the actuarial valuation. The figures produced will relate to this date.

The approach used by the actuary in carrying out an actuarial valuation. See accrued benefits valuation method and prospective benefits valuation.

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.

Report on an actuarial valuation. Also called an actuarial report.

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.

Credit insurance cover applying to the VAT content of sales invoices.

Contract under which the insurer agrees at inception to pay a stated sum in the event of a total loss without allowance for depreciation or appreciation. Partial losses are dealt with on an indemnity basis. Marine insurers issue valued policies on cargo (partial losses dealt with pro rata) and hulls (total loss only). Where a valued policy is not issued, e.g. open covers, a valuation clause is used.
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See: agreed value policy.
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See: Agreed amount clause.
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Property Insurance Policy which provides that a predetermined, fixed amount will be paid for total loss to property. Most fine arts and some inland marine policies are written on this basis.

An annuity contract under which the payments to the annuitant will vary with the value of an underlying investment portfolio or linked to a cost of living index.