What does Security Valuation mean? Read on to discover the definition & meaning of the term Security Valuation - to help you better understand the language used in insurance policies.
Security valuation is a process in which regulators assess the safety and risk associated with the securities that an insurance company has on its books. The purpose of doing this is to make sure that the insurance company is not exposed to high levels of risk, thereby putting policyholders in danger of massive losses.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Security Valuation. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: