Glossary of Insurance Terms
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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. |
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Reprinted with permission Insurance Information Institute (I.I.I.) All Rights Reserved http://www.iii.org These definitions provide a brief description of several terms used within the insurance industry. These definitions do not apply for all states or for all products. This is not an insurance contract. Other terms, conditions, and exclusions may apply. These definitions do not change the terms of any insurance contract. The inclusion of a definition of a particular coverage does not necessarily indicate that we offer that coverage. Should any conflict exist between these definitions and the provisions of the applicable insurance policy, the terms of the insurance policy control. Coverage availability varies by state. Please read the Columbia Insurance Group policy for full details regarding the coverages offered by our underwriting companies. |
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