valued policy law
- A regulation that obligates insurance companies to give the insured person the complete coverage amount in cases of total loss, irrespective of the real value of the insured property when the loss happened
- The valued policy law ensured the homeowner received full policy coverage after the destructive fire, regardless of the current market worth of the property.
- Because of the valued policy law, the insurance company paid the full insurance amount after the client's expensive artwork was totally damaged, even though the artwork's value had decreased over time.
- Despite the antique car depreciating in value, the valued policy law required the insurer to refund the total policy limit after it was entirely destroyed in an accident.