BROWSE

Valuation Clause

What is 'Valuation Clause'

A provision in certain insurance policies that specifies the amount of money that the policy holder will receive from the insurer if an insured event occurs. The valuation clause stipulates a fixed amount of money that will be paid for insured property in the event of a loss. Several types of valuation clauses can be written, including replacement cost, actual cash value, stated amount and agreed value.

Explaining 'Valuation Clause'

An insurance policy's valuation clause is important because it determines the dollar amount that will be paid in the event of a loss. Because different types of valuation clauses can be used, policyholders should review insurance policy details to determine if adequate coverage is in place.


Valuation clauses can be based on:


Replacement cost: the cost to repair or replace property using the same level of quality as in the original property.


Actual cash value: the cost of repairing or replacing the property, minus any depreciation.


Stated amount: the maximum value of an insured item.


Agreed value: a fair market value to which to insurer and insured agree.


Further Reading


Valuing the guaranteed minimum death benefit clause with partial withdrawals
www.tandfonline.com [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …

Valuation for mergers, buyouts and restructuringValuation for mergers, buyouts and restructuring
papers.ssrn.com [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …

Lease terms, option pricing and the financial characteristics of propertyLease terms, option pricing and the financial characteristics of property
www.jstor.org [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …

Financial development and asset valuation: The special case of real estateFinancial development and asset valuation: The special case of real estate
www.sciencedirect.com [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …

Deal structuring in philanthropic venture capital investments: Financing instrument, valuation and covenantsDeal structuring in philanthropic venture capital investments: Financing instrument, valuation and covenants
link.springer.com [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …

Modeling and valuing make-up clauses in gas swing contractsModeling and valuing make-up clauses in gas swing contracts
www.sciencedirect.com [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …

Mortgage valuation under optimal prepaymentMortgage valuation under optimal prepayment
academic.oup.com [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …

Pricing upwards‐only rent review clausesPricing upwards‐only rent review clauses
www.emerald.com [PDF]
… Valuing the Guaranteed Minimum Death Benefit Clause with Partial Withdrawals … Our valuations for the fair insurance fee of GMDB contracts are determined as solutions to a four … For ease of exposition, we will first consider the no-arbitrage valuation of the GMBD under the Black …



Q&A About Valuation Clause


Which type of valuation clause is based on stated amount?

Stated amount.

What is a valuation clause?

A provision in certain insurance policies that specifies the amount of money that the policy holder will receive from the insurer if an insured event occurs.

Which type of valuation clause is based on actual cash value?

Actual cash value.

What are some types of valuation clauses?

Replacement cost, actual cash value, stated amount and agreed value.

Which type of valuation clause is based on agreed value?

Agreed value.

Leave a Reply

Your email address will not be published. Required fields are marked *