What does Fair Value mean? Read on to discover the definition & meaning of the term Fair Value - to help you better understand the language used in insurance policies.
the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale. Quoted market prices in active markets are the best evidence of fair value and shall be used as the basis for the measurement, if available. If a quoted market price is available, the fair value is the product of the number of trading units times market price.
We hope the you have a better understanding of the meaning of Fair Value.