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. 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

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