valued policy

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.

valued policy

noun

1. See open policy
   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

Word History and Origins

Origin of valued policy¹

First recorded in 1755–65