an insurance policy in which the amount payable in the event of a valid claim is agreed upon between the company and policyholder when the policy is issued and is not related to the actual value of a loss
Compare open policy
valued policy in Insurance
(vælyud pɒlɪsi)
Word forms: (plural) valued policies
noun
(Insurance: General)
A valued policy is an insurance policy in which the amount payable for a claim is agreed upon whenthe policy is issued, and is not related to the actual value of a loss.
With a valued policy, the insurer pays a specified amount of money to or on behalf of the insured uponthe occurrence of a defined loss.
A valued policy pays a specified sum not related in any way to the extent of the loss.
A valued policy is an insurance policy in which the amount payable for a claim is agreed upon whenthe policy is issued, and is not related to the actual value of a loss.