valued policy

American  

noun

Insurance.

1. a policy in which the company and the policyholder agree to the amount to be paid in the event of total loss of property, regardless of the value of the property.

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valued policy British  

noun

1. 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

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Etymology

Origin of valued policy

First recorded in 1755–65

Example Sentences

This is called a valued policy.

From Project Gutenberg

An interest policy, is where the insurer has a real assignable interest in the thing insured; a wager policy, is where the insurer has no substantial interest in the thing insured; an open policy, is where the amount of interest is not fixed, but left to be ascertained in case of loss; a valued policy, is where an actual value has been set on the ship or goods.

From Project Gutenberg