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  • Vacancy
  • Vacancy or unoccupancy permit
  • Vacant building
  • Validation period
  • Valuable papers and records insurance
  • Valuation
  • Valuation method
  • Valuation of loss
  • Valuation premium
  • Value at risk
  • Value bill of lading
  • Valued policy
  • Valued policy law
  • Vandalism
  • VaR
  • Variable annuity
  • Variable life insurance
  • Variable premium life insurance
  • Variable universal life insurance
  • VCIA
  • Vehicle Recovery Assistance
  • Vendors coverage
  • Venture
  • Verbal threshold
  • Vermont Captive Insurance Association
  • Vested benefit
  • Vested commissions
  • Vesting
  • Veterinarian professional liability insurance
  • Vexatious litigant
  • Viatical
  • Viatical settlement
  • Viaticate
  • Viator
  • Vicarious
  • VIN or vehicle identification number
  • Virtual insurance
  • Vis major
  • Voidable
  • Voided policy
  • Voluntary compensation coverage
  • Voluntary insurance
  • Voluntary insurer
  • Voluntary market
  • Voluntary reserve
  • Voyage
  • Voyage charter


Refers to a building which is unfurnished and not being used as a dwelling or for business. However, some insurance policies often contain their own definition of vacancy.

Vacancy or unoccupancy permit

An endorsement added to a property policy by the insurer which permits or agrees to continue coverage on a building that has been vacant or unoccupied for more than the limitation period specified in the policy.

Vacant building

A building with nothing in it. If the furniture is in the building and the owner intends to return, the building is unoccupied.

Validation period

With respect to life insurance, it is the time it takes for the premium on a policy to cover the commissions paid, the cost of investigation, medical exams, and other reports on the insured, as well as policy issuing expenses.

Valuable papers and records insurance

Provides coverage for the replacement of a commercial operation's valuable papers, records and forms, including electronic media. Typically, coverage is limited to the cost of recreating or restoring the lost or damaged documentation.


The act of determining the worth (or value) of an item of real or personal property most often done by means of an appraisal.

Valuation method

The method used by an appraiser or a claims adjusters to determine or establish value of an item of real or personal property at the time of loss. For example, a building may be valued at replacement cost (undepreciated), market value, actual cash value, and so forth.

Valuation of loss

The method used to determine or establish the value of an item of real or personal property at the time of loss.

Valuation premium

A life insurance term. It is the amount of the premium that is set aside for state mandated reserves.

Value at risk

A new measurement concept used in risk management. It describes determining a worst-case scenario regarding the maximum loss exposure, expressed in dollars, an entity may face during a given time period.

Value bill of lading

The receipt issued by the transportation company for goods being shipped and which describes the specifics of carriage, including freight and value of goods.

(See ad valorem.)

Valued policy

A policy in which the company agrees that the property insured is worth the amount of insurance and, therefore, in the event of total loss, pays the face value of the policy without need for proof of the value at that time.

Valued policy law

In certain states, a law which requires that in the event a building is totally destroyed by fire, the company insuring it must pay the face amount of its policy irrespective of the actual value of the building destroyed.


Damage done maliciously, included in the extended coverage endorsement. Also called "malicious mischief."


A new measurement concept used in risk management. It describes determining a worst-case scenario regarding the maximum loss exposure, expressed in dollars, an entity may face during a given time period.

Variable annuity

A type of annuity where payout or benefits are not a fixed amount, but rather are variable depending on the investment earnings accumulated. The insured is allowed the investment option and/or the stock portfolio desired.

Variable life insurance

A type of life insurance where payout or benefits are not a fixed amount, but rather are variable depending on the investment earnings accumulated. The insured is allowed the investment option and/or the stock portfolio desired. The cash surrender value or benefits are tied directly to the income earned by the investments.

Variable premium life insurance

Life insurance programs most commonly found in universal life, in which the premium due is variable. The variation in premium will depend on the investment earnings from earned dividends that may be reinvested and used to pay premiums.

Variable universal life insurance

A universal life insurance contract invested in equities. The VUL policy retains the features of universal life insurance but can be more volatile because of the equities investments. The VUL contract is considered a security and must be registered with the SEC as well as the state insurance department and agents must have both a life and NASD securities license to sell the product.


(See Vermont Captive Insurance Association.)
Vehicle Recovery Assistance

A U.K. term for roadside assistance coverage.

Vendors coverage

A commercial general liability endorsement that extends additional insured coverage to designated vendors for both bodily injury and property damage losses that may be a result of the insured's and vendor's products.


In ocean marine insurance, the undertaking, such as one voyage of a vessel.

Verbal threshold

No-fault automobile laws are applicable in some states. In a portion of the states with no-fault laws, when the injuries of the victim meet or exceed specifically described criteria, the victim is compensated under the no-fault system but is also allowed the option to take legal action against the negligent tortfeasor under the tort system for injury and loss such as pain, suffering and, where allowed, punitive damages. The specifically described criterions, or verbal description of injuries are called the verbal threshold.

Vermont Captive Insurance Association

An association of captive insurers and related organizations that promotes the captive insurance mechanism through education, lobbying, communication and sponsoring annual meetings and seminars. Headquarters: Burlington, VT.

Vested benefit

That portion of the employer contribution to a pension plan that the employee owns. Employee contributions are always 100% vested.

Vested commissions

In certain types of life and health lines of insurance, if an agent/broker writes an account that renews or remains with a carrier past the initial policy term, the commissions derived from subsequent renewals are vested or owned by the agent/broker. These commissions are payable to that agent/broker or his/her estate even if that agent/broker is no longer writing for or contracted with the carrier.


The point in time in which an employee who is a participant in a retirement or pension plan becomes eligible to receive any or all of the employer's contributions to the plan. The contributions of the employee are always fully or 100% vested from the point of contribution; however, the employer's portion of the contributions are not fully invested at the time of contribution, but become earned over a scheduled period of time.

Veterinarian professional liability insurance

Specially designed professional liability insurance to protect veterinarians from claims alleging injury or loss that may result from the rendering or failing to render, errors or mistakes in professional veterinarian services.

Vexatious litigant

Refers to a plaintiff who files a lawsuit (or continues a lawsuit) with the understanding that the legal action is not logically justified (is meritless). In other words, any party that knowingly and repeatedly files frivolous lawsuits.


From the Latin word "viaticum" which loosely translated means provisions for a journey, viatical is often used in reference to the sale of the rights to a life insurance policy. Recently, it is used in reference to obtaining or selling the rights to insurance benefits (either in whole or in part) to provide for the needs of terminally ill insureds such as those with cancer or AIDS.

Viatical settlement

When part or all of the proceeds from a life insurance policy are provided or paid out to an insured who is terminally ill.


The process of selling the rights to a life insurance policy.


The person such as an agent or broker who sells rights to life insurance coverage.


When one party is held responsible for the actions or conduct of another party based solely on the relationship of the two parties.

VIN or vehicle identification number

The number that the manufacturer assigns each vehicle that comes off of the assembly line. The number is used to identify the vehicle style and construction and is also used to identify the vehicle on the title and in insurance policies.

Virtual insurance

An evolving term that typically refers (theoretically) to any form of insurance coverage that is sold, delivered and serviced electronically, specifically via the Internet. Another term is e-insurance.

Vis major

Latin term meaning "a greater or superior force." An accident for which no one is responsible; an act of God.


A policy contract that can be made void at the option of one or more of the parties to it. An example would be a property insurance policy which is voidable by the insurer if the insured commits certain acts.

Voided policy

When important information related to seeking insurance coverage has been concealed, misrepresented or is fraudulent, the insurer may have the right to dissolve a policy's coverage as though the policy never existed.

Voluntary compensation coverage

Protection which an employer may purchase to cover employees not otherwise included in the scope of workers compensation laws.

Voluntary insurance

Insurance coverage offered by voluntary insurers, that is, not required to be purchased by any federal or state requirement.

Voluntary insurer

Any insurer offering coverages that are voluntary or not required by any federal or state law.

Voluntary market

The segment of the insurance market where insureds are able to obtain the desired or necessary coverages from available insurance carriers voluntarily, without state or governmental intervention in forcing placement either with a private carrier or a state-mandated plan.

Voluntary reserve

A reserve or allocation of surplus that is not required by law. These types of reserves are often used by insurers to strengthen their financial standing.


With reference to marine insurance, it is the entire trip undertaken by the covered vessel starting from the time it leaves its home port until it returns.

Voyage charter

As used in marine insurance, it is the charter or hiring of a vessel and crew for a one-time trip or voyage. Most often done to transport cargo.