V - GLOSSARY w links 1. Valuation Definition: Valuation refers to the process of determining the current worth of an asset or a company. It is crucial in insurance to ensure that the coverage purchased is adequate to cover potential losses. Learn more 2. Variable Annuity Definition: A variable annuity is a type of annuity contract that allows for investment in various sub-accounts, similar to mutual funds, where the payout varies based on the performance of the investments. It offers the potential for higher returns compared to fixed annuities. Learn more 3. Vandalism Coverage Definition: Vandalism coverage is part of a property insurance policy that protects against damages caused by deliberate destruction of property. It is often included in standard homeowners or business insurance policies. 4. Vehicle Identification Number (VIN) Definition: The Vehicle Identification Number (VIN) is a unique code assigned to every motor vehicle when it's manufactured, used to track recalls, registrations, warranty claims, thefts, and insurance coverage. Learn more 5. Voluntary Benefits Definition: Voluntary benefits are additional insurance options offered by employers that employees can choose to purchase, such as life, dental, or vision insurance. These benefits are often paid for through payroll deductions. 6. Vacancy Clause Definition: A vacancy clause in an insurance policy outlines the terms under which a property is considered vacant and how it affects coverage. Typically, coverage may be reduced or voided if a property is left vacant for an extended period. 7. Variable Life Insurance Definition: Variable life insurance is a permanent life insurance policy with an investment component, allowing policyholders to allocate a portion of their premium into investment accounts. The cash value and death benefit can fluctuate based on the performance of these investments. Learn more 8. Vesting Definition: Vesting refers to the process by which an employee earns non-forfeitable rights over employer-contributed funds to a retirement plan or pension. In insurance, it can also relate to the ownership rights of policy benefits. 9. Valued Policy Definition: A valued policy is an insurance policy in which the insurer agrees to pay a predetermined amount in the event of a total loss, regardless of the actual cash value at the time of the loss. This type of policy is often used for items with fluctuating market values. 10. Viatical Settlement Definition: A viatical settlement involves selling a life insurance policy to a third party for less than the death benefit but more than the cash surrender value. This option is typically used by terminally ill policyholders to access funds for medical expenses. Learn more 11. Voidable Contract Definition: A voidable contract is an agreement that may be legally voided at the option of one of the parties. In insurance, this can occur if there is a misrepresentation or fraud by one of the parties involved. 12. Volatility Definition: Volatility refers to the degree of variation in the price of a financial instrument over time. In insurance, it can affect the pricing of products like variable annuities or investment-linked policies. Learn more 13. Vision Insurance Definition: Vision insurance is a type of health coverage that provides benefits for eye care, including exams, glasses, and contact lenses. It is often offered as part of an employee benefits package. 14. Valuation Date Definition: The valuation date is the specific date at which the value of an asset or liability is determined. In insurance, it is crucial for assessing the value of claims or the financial status of an insurance company. 15. Verification of Benefits Definition: Verification of benefits is the process of confirming a policyholder's insurance coverage and benefits prior to receiving services. It ensures that the services provided will be covered by the insurer. 16. Vendor's Single Interest Insurance Definition: Vendor's single interest insurance protects the interest of a vendor or lender in the collateral securing a loan. It covers losses that the borrower’s insurance policy does not. 17. Voluntary Surrender Definition: Voluntary surrender occurs when a policyholder chooses to cancel their insurance policy before it matures, usually receiving the cash surrender value. This decision is often made when the policy is no longer needed or affordable. 18. Valuation Clause Definition: A valuation clause in an insurance policy specifies how the value of insured property is determined in the event of a claim. It helps to establish the payout amount for a covered loss. 19. Vicarious Liability Definition: Vicarious liability is a legal principle where one party is held liable for the actions of another party. In insurance, employers can be held responsible for the negligent acts of their employees. Learn more 20. Variable Universal Life Insurance Definition: Variable universal life insurance combines the features of universal life insurance with investment options, allowing policyholders to invest the cash value in various accounts. The policy offers flexibility in premium payments and death benefits. Learn more 21. Valuation Reserve Definition: A valuation reserve is a fund set aside by an insurance company to cover potential future claims or losses. It helps ensure the company's financial stability and ability to meet policyholder obligations. 22. Voluntary Excess Definition: Voluntary excess is the amount a policyholder agrees to pay towards a claim before the insurance coverage kicks in. Choosing a higher voluntary excess can often reduce premium costs. 23. Vacant Property Insurance Definition: Vacant property insurance provides coverage for properties that are unoccupied for extended periods. Standard policies may not cover damages to vacant properties, making this specialized insurance necessary. 24. Valued Policy Law Definition: Valued policy law requires insurers to pay the full amount of insurance in the event of a total loss, regardless of the property's actual cash value. This law aims to simplify and expedite claims processing. 25. Vesting Schedule Definition: A vesting schedule outlines the timeline over which an employee gains full ownership of employer-contributed funds in a retirement plan. In insurance, it can also refer to the timeline for acquiring rights to policy benefits. Learn more