A valuation premium is a type of premium that is paid by a policyholder to an insurance company in order to have the insurance company's valuation of the policyholder's property or liability insured. The valuation premium is typically a percentage of the value of the property or liability being insured.
What are the common terms used in insurance?
The most common terms used in insurance are:
-Premium: The amount of money that the policyholder pays to the insurance company for coverage.
-Deductible: The amount of money that the policyholder must pay out-of-pocket before the insurance company will pay for a covered loss.
-Coverage: The amount of money that the insurance company will pay for a covered loss.
-Exclusions: The types of losses that are not covered by the insurance policy. What is the term for insurance premium? A premium is the price of insurance coverage. Which method of valuation is generally used by life insurers? The method of valuation generally used by life insurers is the "net present value" method. This method takes into account the time value of money, and assigns a present value to future payments. This present value is then discounted to account for the riskiness of the payments, and the result is the net present value.