Warning: session_start() [function.session-start]: open(/home/content/81/7236881/tmp/sess_jnqhueas3bo1f0lq9k1eujtjq2, O_RDWR) failed: No such file or directory (2) in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 2

Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php:2) in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 2

Warning: session_start() [function.session-start]: Cannot send session cache limiter - headers already sent (output started at /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php:2) in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 2

Warning: include(/home/content/i/d/e/idealsite/html/appraiserunderoath/Misc/Top.php) [function.include]: failed to open stream: No such file or directory in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 3

Warning: include() [function.include]: Failed opening '/home/content/i/d/e/idealsite/html/appraiserunderoath/Misc/Top.php' for inclusion (include_path='.:/usr/local/php5/lib/php') in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 3
Appraiser Under Oath e-Magazine
Masthead

Warning: include(/home/content/81/7236881/html/appraiserunderoath/Misc/MenuBody.css) [function.include]: failed to open stream: No such file or directory in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 35

Warning: include() [function.include]: Failed opening '/home/content/81/7236881/html/appraiserunderoath/Misc/MenuBody.css' for inclusion (include_path='.:/usr/local/php5/lib/php') in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 35

GLOSSARY of VALUATION TERMS



A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

●●●● A ●●●●
Back up to Page Top

Acquisition Cost
The the actual price paid.

Actuarial Science
"Actuarial Science branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that adequate premiums are charged for risks underwritten, and that adequate provision is made for future payments of benefits."4

Adhesion Contract
"[insurance] … Standardized contract form offered to consumers of goods and servic¬es on essentially 'take it or leave it' basis without affording consumer realistic opportu-nity to bargain and under such conditions that consumer cannot obtain desired product or services except by acquiescing in form con¬tract. Distinctive feature of adhesion con¬tract is that weaker party has no realistic choice as to its terms."1 "[Insurance] Adhesion insurance contract agreement prepared by an insurance company and offered to prospective insureds on a take-it-or-leave-it basis. If the contracts are misinterpreted by insureds, courts have ruled in their favor since the insureds had no input into the contract. All insurance contracts have been deemed by courts to be contracts of adhesion."2

Agreed Value Policy
[insurance] Agreed Value, stipulated value, cash or Valued Policies - Value of property is agreed upon for purposes of compensation in the event of a loss.37 Usually the value is determined by an appraisal. Other policies are called “Open Policies.” 3

Annulment
The process or end result of legally voiding a marriage.

Ante-nuptial Agreement
See Prenuptial agreement.

Appraisal
"[insurance] … valuation of property for damage resulting from an insured peril or for estimating the base amount of insurance coverage to be purchased."5

●●●● B ●●●●
Back up to Page Top

Bifurcate Motion
A motion requesting a judge to pass judgment on an aspect of a case without trying all aspects of the case before reaching a judgment – for example, granting a divorce decree without judging the child custody aspect of the case.

Brokers
"Insurance broker means a person who, for compensation and on behalf of another person, transacts insurance other than life with, but not on behalf of, an insurer."6

●●●● C ●●●●
Back up to Page Top

Captive Agents
"Representative of a single insurer or fleet of insurers who is obligated to submit business to only that company ..."7

Cash Value Policy
See Agreed Value.

Codes
A set of published laws on a specific topic – such as the insurance code – that were enacted by the legislative process.

Common Law
A traditional law of England which was adopted as the basis for American jurisprudence. In some states Common Law are applicable without being included as written code.

Community Property
Marital property held by a husband and wife in community property states. It is not based on title but the concept that a husband and wife are equal partners in their marriage.

Concealment
"Neglect to communicate that which a party knows, and ought to communicate, is concealment."8

Constitution
The law of the land that guarantees certain rights and is the basis for all decisions by the U.S. Supreme Court on issues of constitutionality.

Corpus Juris Civilis
Body of laws existing during the Roman Empire.

●●●● D ●●●●
Back up to Page Top

Defendant
The party in a lawsuit that was sued or being prosecuted for a criminal act.

Dissolution of Marriage
See divorce.

Divorce
A legal termination of a marriage.

●●●● E ●●●●
Back up to Page Top

Effective Date
The date of value.

Equitable Distribution
In theory a division of marital property based on a equal split (50-50). But usually a division of marital property that is not precisely 50-50 – but flexible based on the financial situation of each spouse. Factors reviewed by the court will be the earning power of the parties, separate property owned by each party, the contribution of a spouse, the effort at homemaking, the dissipation of funds by one spouse, abuse, age and health, length of the marriage, providing care for children and infidelity.

●●●● F ●●●●
Back up to Page Top

Fair Market Value
The worth of a property based on what property would have realized if sold on a particular date in the prevailing open market for the property, with both the buyer and the seller knowing what they need to know to be willing and not under any duress. Various definitions exist – specific to a legal need.

Floater
See Marine Insurance Policy.

Form Attachments
"Form attachment to an insurance policy to complete its coverage. For example, the Standard Fire Policy must have certain forms attached for it to provide the coverage desired."9

●●●● G ●●●●
Back up to Page Top

●●●● H ●●●●
Back up to Page Top

Home Owner's Policy
"Homeowners Insurance Policy package policy that combines (1) coverage against the insured's property being destroyed or damaged by various perils, and (2) coverage for liability exposure of the insured. Homeowners’ policies cover both individuals as well as property. In addition to the insured, those covered include his/her spouse, their relatives, and any others under 21 who are residents of the insured's household."10

Home Owner's Policy Coverage A
Pertains to "... the structure of the home."11

Home Owner's Policy Coverage B
Pertains to "... structures not attached to or part of the house ..."12

Home Owner's Policy Coverage C
Pertains to "... contents or personal property ..."13

Home Owner's Policy Coverage D
Pertains to "... coverage if the home is damaged or destroyed and the insured must seek temporary lodging."14

Home Owner's Policy Coverage E
Pertains to "... coverage in the event a suit is brought against the insured because of bodily injury and/or property damage resulting from the acts or non-acts of the insured."15

Home Owner's Policy Coverage F
Pertains to “... coverage for reimbursement of reasonable medical expenses ..."16

●●●● I ●●●●
Back up to Page Top

Independent Agents
"Contractor who represents different insurance companies and who searches the market for the best price for a client's business."17

Inherent Vice Exclusion
"Provision of property policy which excludes construction that is likely to suffer a loss. For example, the roofing material used may not be able to withstand a wind force of more than 15 miles an hour." 18

Inflation Endorsement
"Inflation endorsement attachment to a property insurance policy which automatically adjusts its coverage according to the construction cost index in a community. This endorsement is necessary in a property contract to maintain adequate coverage. Otherwise, it is advisable for a policy owner, at the time of renewal, to adjust the limits of coverage to reflect the increased cost of construction and the market value of the property."19

Inland-Marine Policy
See Marine Insurance Policy.

Insurance
"A contract whereby one undertakes to indemnify another against loss, damage, or liability arising from an unknown or contingent event and is applicable only to some contingency or act to occur in future."20

Insurance Agent
"An insurance agent is a person authorized by and on behalf of an insurer to transact all classes of insurance, except life insurance."21

Insured and Insurer
"The person who undertakes to indemnify another by insurance is the insurer, and the person indemnified is the insured."22

●●●● J ●●●●
Back up to Page Top

Jewelers' Block Insurance Policy
"Jewelers' Block Insurance Policy is a type of Inland Marine Insurance which provides coverage for jewels, watches, gold, silver, platinum, pearls, precious and semiprecious stones. Property can be owned by the insured jeweler, or can be customer's property in care, custody, and control of the jeweler. Coverage is on an all risks basis except specifically excluded perils such as wear and tear; war; decay; loss of market; flood; earthquake; loss or damage while jewelry is being worn by the insured or his/her representatives; loss resulting from the infidelity of any person under the care, custody, and control of the insured; damage or destruction of jewelry after it leaves the insured under an installment contract; mysterious disappearance; and shipments of jewelry not sent registered first class mail."23

Joint Tenancy
A type of real property ownership that allows each owner an undivided interest in the entire property and with right of survivorship - upon the death of one joint tenant, the other(s) has title to it all. Property cannot be inherited.

Jurisdiction
A court’s legal authority to hear a case, based on locality, monetary amounts or subject matter. Also, a legal district - such as a state jurisdiction.

●●●● K ●●●●
Back up to Page Top

●●●● L ●●●●
Back up to Page Top

Legal Separation
A right granted by the court to live separately – as if divorced except not actually being divorced. Thus, the parties cannot remarry. A legal separation is usually requested by people with religious objections to divorce.

Liquidation Value
Amount realized if property is sold in a distress, forced or foreclosure sale.

Lloyd's Associations
"Lloyd's of London insurance facility composed of many different syndicates, each specializing in a particular risk, for example, hull risks. Lloyd's provides coverage for primary jumbo risks as well as offering reinsurance and retrocessions. Membership in a syndicate is limited to individuals with a large personal net worth, and each member may belong to one or more syndicates depending upon his net worth. Although much of the publicity Lloyd's receives involves insuring exotic risks such as an actress' legs, this represents only a very small portion of its total business, most of which involves reinsurance and retrocessions."24

●●●● M ●●●●
Back up to Page Top

Marine Insurance Policy
"Marine insurance includes insurance against any and all kinds of loss of or damage to: Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether the same be in course of transportation or other¬wise."25

Marital Estate
See Marital property.

Marital Property
Property, both real and personal, that is part of the marital estate and not classified as separate property.

Market Value
See Fair Market Value.

Mediation
A hearing in which a mediator strives to get a couple to settle issues in their divorce - such as property division.

Mixed Insurance Companies
"Mixed Insurance Company one that combines the two forms of ownership, stock and mutual. A stock insurance company is owned by stockholders whereas a mutual insurance company is owned by its policyholders. A mixed company is owned in part by stockholders and in part by policyholders. Most mixed companies issue participating and nonparticipating policies."27

Moral Hazard
""Circumstance which increases the probability of loss because of an applicant's personal habits or morals, for example, if an applicant is a known criminal."26

Mutual Insurance Companies
"Mutual Insurance Company owned by its policy-owners; no stock is available for purchase on the stock exchanges."28

●●●● N ●●●●
Back up to Page Top

Net Value
The value after encumbrances have been deducted from fair market value.

Napoleonic Code
Originally the code of France – named after Napoleon Bonaparte, now called civil code.

●●●● O ●●●●
Back up to Page Top

Open Policy
See Agreed Value.

Original Cost
"Original Cost - actual price paid for property when it was acquired. The original cost might apply to a piece of jewelry, to a piece of equipment, or to a building. For insurance purposes, original cost is often different from replace¬ment cost or actual cash value."29 Also see Acquistion Cost.

●●●● P ●●●●
Back up to Page Top

Palimony
A type of alimony, with an agreement that one party would support the other, used for a couple that were not married but lived together and ended their relationship.

Personal Articles Insurance
See Personal Property Insurance.

Personal Jewelry Insurance
"Personal Jewelry Insurance coverage on jewelry and precious stones on an all risks basis at any location subject to exclusions of wear and tear, war, and nuclear disaster. Each item must be specifically listed in the policy. This coverage is of importance to insureds with valuable jewelry since most property insurance policies such as the homeowners insurance policy have relatively low limits of coverage for jewelry and precious stones."30

Personal Property
Property that is not attached to land that is moveable of a non-residence type – can include investments and rights.

Personal Property Insurance
“Special personal property form endorsement to the special multi-peril insurance (SMP) policy that provides all risks damage coverage for personal property. There are special limitations on amounts of coverage for furs, jewelry, precious stones and metals, patterns and dies, stamps, tickets and letters of credit. Certain electronic equipment and fragile materials are only covered for specific perils.”31

Plaintiff
The person who starts a lawsuit.

Prenuptial Agreement
A written agreement (contract) between two people before they marry – agreeing as to how assets normally considered part of the marital estate will be dissolved in the event of a divorce.

Production Cost
“It is the amount which it is estimated it will cost to make or produce a property by assembly of components, manufacture, construction, fabrication, or the natural growth of living things. Similarly, the buyer's cost (or purchase cost) of an item of property of which duplicates are not available in the open market is not value.”32

●●●● Q ●●●●
Back up to Page Top

Quasi-community Property
Only applies in community property states – handling the marital property during a divorce proceeding as if it had been community property although it was acquired while under another state’s jurisdiction.

●●●● R ●●●●
Back up to Page Top

Real Property
Property that is land or attached to land such as structures and fixtures attached to structures or land.

Reciprocal Insurers
"Reciprocal Exchange unincorporated association with each insured insuring the other insureds within the association. (Thus, each participant in this pool is both an insurer and an insured.) An attorney-in-fact administers the exchange to include paying losses experienced by the exchange, investing premium inflow into the exchange, recruiting new members, underwriting the inflow of new business, underwriting renewal business, receiving premiums, and exchanging reinsurance contracts. Members share profits and losses in the same proportion as the amount of insurance purchased from the exchange by that member."33

Regulation
Published rules or administrative codes by governmental agencies. They are not laws but enforced as if they were.

Replacement Cost
Estimates of Replacement Cost (new, or used, depreciated) - "... is applicable to an existing, replaceable property. Replacement cost estimates are used for or in connection with: a) Determining the amount of property insurance to carry and the amount of the claim in an insured loss."34

Replacement Value
[Insurance] "Replacement, reconstruction, and reproduction cost option to an insurance company to replace, reconstruct (repair), or reproduce (rebuild) damaged or destroyed property covered by property insurance rather than indemnify an insured in cash. This is rarely done."35

●●●● S ●●●●
Back up to Page Top

Stare Decisis
The concept that a lower court is mandated to follow the published decisions of a higher court with jurisdiction over it – called case law.

Statute
Federal or state enacted laws.

Stipulated Value Policy
See Agreed Value.

Stock Insurance Companies
"Stock Insurance Company business owned by stockholders, as contrasted to a mutual insurance company that is owned by its policyholders. Many major life insurers are mutual com¬panies whereas some leading property/casualty and multiline insurers are stock insurance companies."36

Summary Dissolution
A dissolution of marriage granted for short lived marriages without significant assets.

●●●● T ●●●●
Back up to Page Top

Tenancy in Entirety
An ownership by husband and wife, when upon the death of one, the remaining spouse has the right of survivorship – the right to the entire property and is somewhat like community property.

Tenants in Common
Title to real or personal property held by two or more persons with what is called an undivided interest but without the right of survivorship. Each owned interest in a property can be sold, willed or even mortgaged.

Title
Ownership of real or personal property.

●●●● U ●●●●
Back up to Page Top

Underwriters
"An individual who works in the home office of an insurance company and performs the function of underwriting to determine if an applicant is insurable at standards rates, substandard rates, insurable at preferred rates, or is uninsurable."37

●●●● V ●●●●
Back up to Page Top

Valued Policy
See Agreed Value.

●●●● W ●●●●
Back up to Page Top

Wear and Tear Exclusion
"Wear and Tear Exclusion denial of coverage for damage, in inland marine insurance, stemming from routine use of the property. Property can be expected to deteriorate somewhat over time from normal use. This is not considered an insurable loss."38

●●●● X ●●●●
Back up to Page Top

●●●● Y ●●●●
Back up to Page Top

●●●● Z ●●●●
Back up to Page Top

Footnotes:

1. Black's Law Dictionary, Fifth Edition, page 38.
    Back to Text ↑ ↑ ↑

2. Barron Dictionary of Insurance Terms, page 7.
    Back to Text ↑ ↑ ↑

3. California Insurance Code §§ 411.
    Back to Text ↑ ↑ ↑

4. Barron Dictionary of Insurance Terms, page 6.
    Back to Text ↑ ↑ ↑

5. Barron Dictionary of Insurance Terms, page 19.
    Back to Text ↑ ↑ ↑

6. California Insurance Code §§ 33 and 1633.
    Back to Text ↑ ↑ ↑

7. Barron Dictionary of Insurance Terms, page 43.
    Back to Text ↑ ↑ ↑

8. California Insurance Code §§ 330.
    Back to Text ↑ ↑ ↑

9. Barron Dictionary of Insurance Terms, page 115.
    Back to Text ↑ ↑ ↑

10. Barron Dictionary of Insurance Terms, page 133.
    Back to Text ↑ ↑ ↑

11. Barron Dictionary of Insurance Terms, page 133.
    Back to Text ↑ ↑ ↑

12. Barron Dictionary of Insurance Terms, page 133.
    Back to Text ↑ ↑ ↑

13. Barron Dictionary of Insurance Terms, page 134.
    Back to Text ↑ ↑ ↑

14. Barron Dictionary of Insurance Terms, page 134.
    Back to Text ↑ ↑ ↑

15. Barron Dictionary of Insurance Terms, page 135.
    Back to Text ↑ ↑ ↑

16. Barron Dictionary of Insurance Terms, page 135.
    Back to Text ↑ ↑ ↑

17. Barron Dictionary of Insurance Terms, page 143.
    Back to Text ↑ ↑ ↑

18. Barron Dictionary of Insurance Terms, page 147.
    Back to Text ↑ ↑ ↑

19. Barron Dictionary of Insurance Terms, page 146.
    Back to Text ↑ ↑ ↑

20. Black's Law Dictionary, Fifth Edition, page 721.
    Back to Text ↑ ↑ ↑

21. California Insurance Code §§ 31 and 1621.
    Back to Text ↑ ↑ ↑

22. California Insurance Code § 23.
    Back to Text ↑ ↑ ↑

23. Barron Dictionary of Insurance Terms, page 161.
    Back to Text ↑ ↑ ↑

24. Barron Dictionary of Insurance Terms, page 180.
    Back to Text ↑ ↑ ↑

25. California Insurance Code §§ 103(c).
    Back to Text ↑ ↑ ↑

26. Barron's Dictionary of Insurance Terms, page 198.
    Back to Text ↑ ↑ ↑

27. Barron Dictionary of Insurance Terms, page 195.
    Back to Text ↑ ↑ ↑

28. Barron Dictionary of Insurance Terms, page 202.
    Back to Text ↑ ↑ ↑

29. Barron Dictionary of Insurance Terms, page 226.
    Back to Text ↑ ↑ ↑

30. Barron Dictionary of Insurance Terms, page 242.
    Back to Text ↑ ↑ ↑

31. Barron Dictionary of Insurance Terms, page 302.
    Back to Text ↑ ↑ ↑

32. Appraisal Principles and Procedures, Henry A. Babcock, page xxvi.
    Back to Text ↑ ↑ ↑

33. Barron Dictionary of Insurance Terms, page 270.
    Back to Text ↑ ↑ ↑

34. Appraisal Principles and Procedures, Henry A. Babcock, page 178.
    Back to Text ↑ ↑ ↑

35. Barron Dictionary of Insurance Terms, page 276.
    Back to Text ↑ ↑ ↑

36. Barron Dictionary of Insurance Terms, page 312.
    Back to Text ↑ ↑ ↑

37. Barron Dictionary of Insurance Terms, page 345.
    Back to Text ↑ ↑ ↑

38. Barron Dictionary of Insurance Terms, page 363.
    Back to Text ↑ ↑ ↑






Warning: include(/home/content/i/d/e/idealsite/html/Admin/Misc/sayings.php) [function.include]: failed to open stream: No such file or directory in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 797

Warning: include() [function.include]: Failed opening '/home/content/i/d/e/idealsite/html/Admin/Misc/sayings.php' for inclusion (include_path='.:/usr/local/php5/lib/php') in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 797

Warning: mysql_connect() [function.mysql-connect]: Can't connect to local MySQL server through socket '/var/lib/mysql/mysql.sock' (2) in /home/content/81/7236881/html/appraiserunderoath/Members/Glossary.php on line 798
For Some Reason - The Quotations Database is Unavailable!
Warning: Unknown: open(/home/content/81/7236881/tmp/sess_jnqhueas3bo1f0lq9k1eujtjq2, O_RDWR) failed: No such file or directory (2) in Unknown on line 0

Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct () in Unknown on line 0