| VALUED
POLICY |
A policy
under which the insurer pays a specified amount of money to or on behalf
of the insured upon the occurrence of a defined loss. The money amount
is not related to the extent of the loss. Life insurance policies are an
example.
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|
VANDALISM |
The
malicious and often random destruction or spoilage of another person’s
property.
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| VARIABLE
ANNUITY |
An annuity
whose contract value or income payments vary according to the
performance of the stocks, bonds and other investments selected by the
contract owner.
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| VARIABLE
LIFE INSURANCE |
A policy
that combines protection against premature death with a savings account
that can be invested in stocks, bonds, and money market mutual funds at
the policyholder’s discretion.
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| VIATICAL
SETTLEMENT COMPANIES |
Insurance
firms that buy life insurance policies at a steep discount from
policyholders who are often terminally ill and need the payment for
medications or treatments. The companies provide early payouts to the
policyholder, assume the premium payments, and collect the face value of
the policy upon the policyholder’s death.
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| VOID |
A policy
contract that for some reason specified in the policy becomes free of
all legal effect. One example under which a policy could be voided is
when information a policyholder provided is proven untrue.
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|
VOLATILITY |
A measure
of the degree of fluctuation in a stock’s price. Volatility is
exemplified by large, frequent price swings up and down.
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| VOLCANO
COVERAGE |
Most
homeowners policies cover damage from a volcanic eruption.
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| VOLUME |
| Number of
shares a stock trades either per day or per week. |
| WAIVER |
The
surrender of a right or privilege. In life insurance, a provision that
sets certain conditions, such as disablement, which allow coverage to
remain in force without payment of premiums.
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| WAR RISK |
Special
coverage on cargo in overseas ships against the risk of being
confiscated by a government in wartime. It is excluded from standard
ocean marine insurance and can be purchased separately. It often
excludes cargo awaiting shipment on a wharf or on ships after 15 days of
arrival in port.
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|
WATER-DAMAGE INSURANCE COVERAGE |
Protection
provided in most homeowners insurance policies against sudden and
accidental water damage, from burst pipes for example. Does not cover
damage from problems resulting from a lack of proper maintenance such as
dripping air conditioners. Water damage from floods is covered under
separate flood insurance policies issued by the federal government.
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| WEATHER
DERIVATIVE |
An
insurance or securities product used as a hedge by energy-related
businesses and others whose sales tend to fluctuate depending on the
weather.
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| WEATHER
INSURANCE |
A type of
business interruption insurance that compensates for financial losses
caused by adverse weather conditions, such as constant rain on the day
scheduled for a major outdoor concert.
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| WHOLE
LIFE INSURANCE |
The oldest
kind of cash value life insurance that combines protection against
premature death with a savings account. Premiums are fixed and
guaranteed and remain level throughout the policy’s lifetime.
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| WORKERS
COMPENSATION |
Insurance
that pays for medical care and physical rehabilitation of injured
workers and helps to replace lost wages while they are unable to work.
State laws, which vary significantly, govern the amount of benefits paid
and other compensation provisions.
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| WRAP-UP
INSURANCE |
Broad
policy coordinated to cover liability exposures for a large group of
businesses that have something in common. Might be used to insure all
businesses working on a large construction project, such as an apartment
complex.
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| WRITE |
To insure,
underwrite, or accept an application for insurance.
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