Valuation Clause

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Valuation Clause

Stipulates a fixed sum for insured property in the event of loss when included in a marine cargo insurance policy.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Valuation Clause

A provision in some insurance policies stating the amount of money the insurer will pay the policyholder if the insured event occurs. That is, the valuation clause states that the insurance company will pay a fixed amount, neither more nor less, under the circumstances described in the policy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
At Rekerdres & Sons, we have proprietary valuation clauses to protect the merchant in pre-finance and other scenarios ...
Some buy-sell agreements use formulaic valuation clauses that are simplistic blends of accounting information and valuation multiples.
Nonformulaic valuation clauses specify obtaining a periodic valuation for a company's equity.
In addition, a buy-sell agreement may provide a predetermined valuation clause should a triggering event occur.
As noted above, buy-sell agreements will generally contain a valuation clause with the terms of the buyout and, often, a definition of value.
Many wills and trusts are drafted with formula valuation clauses defining how property covered by the document will be administered.
Traditional valuation clauses rely upon asset valuation or earnings based methods.
In order to more accurately establish policy limits, it is imperative that the maximum single-job completed value (projected at completion) be established according to the terms of the valuation clause (materials, labor, profit and overhead, for example).