Insurance Glossary

VALUED POLICY

An insurance policy that pays a predetermined amount upon the occurrence of a covered loss, regardless of the actual value of the loss. Life insurance policies are a common example.

VANDALISM

The willful or malicious destruction, damage, or defacement of another person’s property.

VARIABLE ANNUITY

An annuity contract whose value and income payments fluctuate based on the performance of investment options selected by the contract owner.

VARIABLE LIFE INSURANCE

A life insurance policy that combines death benefit protection with a savings component that can be invested in stocks, bonds, or money market funds.

VIATICAL SETTLEMENT COMPANIES

Companies that purchase life insurance policies at a discount from policyholders, often those who are terminally ill, providing immediate funds while assuming future premium payments.

VOID

A policy contract that has no legal effect due to specified conditions, such as material misrepresentation by the policyholder.

VOLATILITY

A measure of how much and how frequently a security’s price fluctuates over time.

VOLCANO COVERAGE

Coverage included in most homeowners insurance policies for damage caused by volcanic eruptions.

VOLUME

The number of shares of a security traded over a given period, such as a day or a week.