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A survey of property made to determine its insurable value.
An evaluation of a home insurance property claim by an authorized person to determine property value or damaged property value. Many policies provide an “appraisal” process to resolve claim disputes. In this process, you and the insurance company hire separate damage appraisers. The two appraisers choose a third appraiser to act as an “umpire.” The appraisers then review your claim, and the umpire rules on any disagreements. The umpire's decision is binding on you and the insurance company, but only for the loss amount. If there is a dispute over what is covered, you can still pursue a settlement of the coverage issue after the appraisal takes place. You are required to pay for your appraiser and half of the umpire's costs.
Texas Department of Insurance and Office of Public Insurance Counsel - Cite This Source - This Definition- Browse Related Terms: Appraisal, Arbitration, Covered Expenses, Escrow, Inspection Report, Liability Coverage, Liability insurance, Negligence, Private Mortgage Insurance (PMI), Property damage, Single interest insurance, Watercraft Endorsement
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An independent evaluation of your home or business to establish a value for a specific period of time.
- Browse Related Terms: Account History, Appraisal, Average daily balance, Billing Date, Cash basis accounting, Cash Flow, Credit History, Credit Repair Organization, Grace Period, Minimum finance charge, Periodic rate
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A written estimate, provided by a State licensed Appraiser, of the value of a home.
State of Maine, Department of Professional and Financial Regulation - Cite This Source - This Definition- Browse Related Terms: Appraisal, Credit Bureaus, Credit Reports, Credit score, Divorce Decree, Fair Collection Practices Act, Fair Credit Reporting Act (FCRA), Home Equity Loan, Liable, MCCC-1, Mortgage Company (Supervised Lender), Supervised Lender
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a written estimate of a property's current market value prepared by a professional appraiser.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Appraisal, Appraiser, Closing (or settlement) costs, equity, Financial Models, Good faith estimate, Loan to Value (LTV) Ratio
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The charge for estimating the value of property offered as security.
- Browse Related Terms: Annual Percentage Rate (APR), application fee, appraisal fee, HUD-1 Uniform Settlement Statement, Loan origination fees, point, Points (also called discount points), Prepayment penalty/prepayment premium, Unpaid Principal Balance (UPB)
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The person who evaluates the damage caused by an accident or other covered loss and determines the amount to be paid under the policy terms.
- Browse Related Terms: Appraiser, Bodily injury (BI), Comparative fault, Comparative Negligence Law, Liability insurance, Named driver exclusion, Named driver policy, Negligence, Negligence/Negligent, Non-owners policy, Underinsured Motorist (UIM), Underinsured Motorist Bodily Injury (UIM) Coverage, Underinsured Motorist Bodily Injury Coverage (UIM), Uninsured Motorist (UM), Uninsured Motorist Bodily Injury (UM) Coverage, Uninsured Motorist Property Damage Insurance (UMPD), Uninsured motorist protection, Uninsured/underinsured motorist (UM/UIM) coverage, Unsatisfied judgment fund
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a professional with knowledge of real estate markets and skilled in the practice of appraisal, a written estimate of a property’s current market value. When a property is appraised in connection with a loan, the appraiser is selected by the lender, but the appraisal fee is usually paid by the homeowner.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Appraisal, Appraiser, Closing (or settlement) costs, equity, Financial Models, Good faith estimate, Loan to Value (LTV) Ratio
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When an asset such as stock, real estate, or personal property increases in value without any improvements or modification having been made to it, that's called appreciation.
Some personal assets, such as fine art or antiques, may appreciate over time, while others - such as electronic equipment - usually lose value, or depreciate.
Certain investments also have the potential to appreciate. A number of factors can cause an asset to appreciate, among them inflation, uniqueness, or increased demand.
- Browse Related Terms: Accredited investor, Appreciation, Boiler room, Capital preservation, churning, Collectible, Financial pyramid, Formula investing, Haircut, Indexed annuity, Inflation-adjusted return, opportunity cost, Real interest rate, Risk, Risk Tolerance, Time value of money
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With traditional fee-for-service health insurance, the insurance company sets an approved or allowable amount for each medical procedure or office visit.
If your bill exceeds the approved charge, the difference between the approved charge and the claim that's submitted to the insurance company for reimbursement is considered an excess charge. You are responsible for that amount in addition to a percentage of the approved charge.
Medicare establishes approved charges for medical procedures and office visits. If you participate in Original Medicare, there's a legal limit on what a doctor, laboratory, or other medical provider can charge in excess of the approved amount.
- Browse Related Terms: activities of daily living, Approved charge, Coinsurance, Copayment, Fee-for-Service, Health Insurance, Long-term care insurance, Medicare, Preferred Provider Organization (PPO)
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Arbitrage is the technique of simultaneously buying at a lower price in one market and selling at a higher price in another market to make a profit on the spread between the prices.
Although the price difference may be very small, arbitrageurs, or arbs, typically trade regularly and in huge volume, so they can make sizable profits.
But the strategy, which depends on split-second timing, can also backfire if interest rates, prices, currency exchange rates, or other factors move in ways the arbitrageurs don't anticipate.
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A determination made by impartial experts of the value of property or the extent of damage. Arbitration is an alternative to litigation of matters in dispute.
The process in which a third-party arbiter examines facts presented by both you and the insurance company when you disagree about a settlement offer. Arbitration can be binding (the arbiter's decision is final) or non-binding (you can still take the insurer to court if you are unsatisfied).
The process in which a third-party arbiter examines facts presented by both you and the insurance company when you disagree about a settlement offer. Arbitration can be binding or non-binding.
- Browse Related Terms: Actual cash value, Actual cash value (ACV), Aftermarket Crash Part, Arbitration, Assigned risk plan, Auto Replacement Coverage, Betterment, Exclusion, Full Tort, Illinois Automobile Insurance Plan (assigned risk plan), Liability, Liability Coverage, Property damage (PD), Total Loss
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Referral to impartial but knowledgeable parties when the company and the claimant cannot agree on the value of a claim. The arbitrator's decision is binding on both parties.
A determination made by impartial experts of the value of property or the extent of damage. Arbitration is an alternative to litigation of matters in dispute.
- Browse Related Terms: Appraisal, Arbitration, Covered Expenses, Escrow, Inspection Report, Liability Coverage, Liability insurance, Negligence, Private Mortgage Insurance (PMI), Property damage, Single interest insurance, Watercraft Endorsement
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Arbitration is a way to resolve conflicts between parties or individuals, and may be considered middle ground between the more cooperative, informal nature of mediation and the more expensive, involved, and lengthy process of litigation.
Usually, when you open a brokerage account, you sign an agreement to use arbitration to resolve possible conflicts with the firm and waive the right to sue for damages in court.
Arbitration is binding, which means you can't appeal the decision or try for a different result by going to court. Most investment-related arbitration claims are handled by either NASD, the main self-regulatory body that supervises brokers, or the New York Stock Exchange (NYSE).
In arbitration, a trained impartial arbitrator or panel of arbitrators reviews the evidence, decides on the outcome, and sets any award. While arbitration is usually less expensive than litigation, arbitration and attorney fees make it a more expensive option than mediation.
- Browse Related Terms: Arbitration, Dispute resolution, Form ADV, Mediation, Registered investment adviser (RIA)
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An arithmetic index gives equal weight to the percentage price change of each stock that's included in the index.
In computing the index, the percentage changes of all the stocks are added, and the total is divided by the number of stocks. The percentage price changes of large companies aren't counted more heavily, as they are in a market-capitalization weighted index.
An arithmetic index is a more accurate measure of total stock market performance than an index that stresses relatively few high-priced or large-company stocks. However, some analysts point out that it may also produce higher total return figures than other indexing methods.
The best known arithmetic index in the US is the one computed by Value Line, Inc., which tracks the approximately 1,700 stocks the company analyzes regularly. Standard & Poor's also calculates an arithmetic version of the S&P 500 index.
- Browse Related Terms: Analyst, Arithmetic index, Benchmark, Beta, Core earnings, Domini Social Index 400, Floating shares, Morgan Stanley Capital International Indexes, Standard & Poor's (S&P), Standard & Poor's 500 Index (S&P 500), Standard & Poor's/BARRA Growth and Value Indexes, Structured product
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The ask price (a shortening of asked price) is the price at which a market maker or broker offers to sell a security or commodity.
The price another market maker or broker is willing to pay for that security is called the bid price, and the difference between the two prices is called the spread.
Bid and ask prices are typically reported to the media for commodities and over-the-counter (OTC) transactions. In contrast, last, or closing, prices are reported for exchange-traded and national market securities.
With open-end mutual funds, the ask price is the net asset value (NAV), or the price you get if you sell, plus the sales charge, if one applies.
- Browse Related Terms: Ask, BID, bid and ask, Dealer, Firm quote, Make a market, Market maker, Pink Sheets, Quotation (Quote), Trading floor
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Anything owned that has value; any interest in real property or personal property that can be used for payment of debts.
Anything owned that has value; any interest in real property or personal property that can be used for payment of debts.
- Browse Related Terms: Asset, Asset Backed Securities, CMOs (Collateralized Mortgage Obligations), Collateralized Mortgage Obligation (CMO), Modified Duration, Mortgage backed security, Par Value, trust, Yield
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Assets are everything you own that has any monetary value, plus any money you are owed.
They include money in bank accounts, stocks, bonds, mutual funds, equity in real estate, the value of your life insurance policy, and any personal property that people would pay to own.
When you figure your net worth, you subtract the amount you owe, or your liabilities, from your assets. Similarly, a company's assets include the value of its physical plant, its inventory, and less tangible elements, such as its reputation.
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An investment strategy that divides assets among major asset categories such as stocks, bonds, or cash, usually balancing risk and creating diversification.
- Browse Related Terms: Asset allocation, assets, diversification, dollar cost averaging, fixed income investments, growth fund, investment adviser, Investment Company, leveraging, management expense fee, portfolio, systematic withdrawal plans
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Asset allocation is a strategy, advocated by modern portfolio theory, for reducing risk in your investment portfolio in order to maximize return.
Specifically, asset allocation means dividing your assets among different broad categories of investments, called asset classes. Stock, bonds, and cash are examples of asset classes, as are real estate and derivatives such as options and futures contracts.
Most financial services firms suggest particular asset allocations for specific groups of clients and fine-tune those allocations for individual investors.
The asset allocation model - specifically the percentages of your investment principal allocated to each investment category you're using - that's appropriate for you at any given time depends on many factors, such as the goals you're investing to achieve, how much time you have to invest, your tolerance for risk, the direction of interest rates, and the market outlook.
Ideally, you adjust or rebalance your portfolio from time to time to bring the allocation back in line with the model you've selected. Or, you might realign your model as your financial goals, your time frame, or the market situation changes.
- Browse Related Terms: Asset allocation, Asset class, Balanced fund, diversification, Family of funds, Financial plan, Fund of funds (FOF), Lifecycle fund, Modern portfolio theory, Nonsystematic risk, Overweighted, portfolio, subclass, Synthetic investment, Target date fund, Target risk fund, Underweighted, White knight
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The process of putting investment funds in different kinds of categories of assets such as stocks and bonds. Asset allocation affects both risk and return, and is a central concept in personal financial planning and investment management.
- Browse Related Terms: AICPA PFP, Asset allocation, Asset Classes, Capital appreciation, Cash Equivalents, Distribution, diversification, dividend, Income, inflation, Service Credit, Yield
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Asset-backed bonds, also known as asset-backed securities, are secured by loans or by money owed to a company for merchandise or services purchased on credit.
For example, an asset-backed bond is created when a securities firm bundles debt, such as credit card or car loans, and sells investors the right to receive the payments made on those loans.
- Browse Related Terms: amortization, Asset-backed bond, Credit card account agreement, Date of maturity, Debt-to-income ratio (DTI), Deferred payment, Delinquency, Honorarium, Late Charge, Maturity Date, Payment Due Date, Prepayment, Self-amortizing loan
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Financial instruments collateralized by one or more types of assets including real property, mortgages, and receivables.
Financial instruments collateralized by one or more types of assets including real property, mortgages, and receivables.
- Browse Related Terms: Asset, Asset Backed Securities, CMOs (Collateralized Mortgage Obligations), Collateralized Mortgage Obligation (CMO), Modified Duration, Mortgage backed security, Par Value, trust, Yield
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Different categories of investments are described as asset classes. Stock, bonds, and cash - including cash equivalents - are major asset classes. So are real estate, derivative investments, such as options and futures contracts, and precious metals.
When you allocate the assets in your investment portfolio, you decide what proportion of its total value will be invested in each of the different asset classes you're including.
- Browse Related Terms: Asset allocation, Asset class, Balanced fund, diversification, Family of funds, Financial plan, Fund of funds (FOF), Lifecycle fund, Modern portfolio theory, Nonsystematic risk, Overweighted, portfolio, subclass, Synthetic investment, Target date fund, Target risk fund, Underweighted, White knight
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A type of investment, such as stocks, bonds, or cash equivalents.
- Browse Related Terms: AICPA PFP, Asset allocation, Asset Classes, Capital appreciation, Cash Equivalents, Distribution, diversification, dividend, Income, inflation, Service Credit, Yield
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An asset management account, offered by a brokerage house, bank, or savings and loan, combines a number of financial services, such as checking, money market, brokerage, and margin accounts, or a revolving line of credit. These accounts allow a person to receive one statement that covers all of their finances. Customers sometimes use these accounts to shift assets and income automatically or as needed. For example, a person might have excess funds in a checking account automatically transferred to a money market account. Several variants of this account exist, with brand names like Cash Management Account, Active Assets Account, and Financial Management Account.
- Browse Related Terms: Asset Management Account, Check (Share Draft), Customer Identification Program (CIP), Debit, Direct Deposit, Electronic bill payment, Electronic Check Conversion, Electronic funds transfer, Electronic Funds Transfer (EFT), Money order, Outstanding check, Preauthorized Payment, Stop payment, Stop Payment Fee, Sweep account
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All-in-one asset management accounts provide the financial advantages of an investment account combined with the convenience of an interest-bearing checking account.
AMAs generally offer check-writing and ATM privileges, credit cards, direct deposit, and automatic transfer between accounts, as well as access to reduced-rate loans and other perks. There are usually annual fees and minimum account requirements.
AMAs are offered by many brokerage firms and mutual fund companies, and are also known as central asset accounts (CAAs) or cash management accounts (CMAs).
- Browse Related Terms: affidavit, Asset management account (AMA), Charge-off, ChexSystems, Credit line, Drawer, Insufficient funds, Kiting, Lifeline account, Local check, money-market account, Negotiable-order-of-withdrawal account, Overdraft, Overdraw, Payee, Stale-Dated Check
What a firm or individual owns.
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We assign your credit card contract if we sell or pass to a third party any or all of our rights or obligations under the contract, including any amount that you owe under the contract. Subject to the extent of the assignment, any party to whom we assign your contract will enjoy all our rights under the contract, including contractual rights to collect amounts that you owe on the account.
- Browse Related Terms: Address on file, Assign, Credit bureau, Credit History, Credit limit, Credit Report, Credit reporting agency, Credit score, Debt cancellation coverage, Debt suspension coverage, Default, Foreign currency transaction, Retail credit card, Treasury bill rate, Workout agreement
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A mechanism for drivers to obtain coverage when insurance companies are unwilling to sell automobile insurance to them.
The North Dakota Automobile Insurance Plan is a state-supervised insurance plan available to persons who are unable to obtain such insurance coverage in the regular market. Individual policies are assigned to carriers based on the percentage of the market they share. The cost of this insurance is higher than the regular market.
- Browse Related Terms: Actual cash value, Actual cash value (ACV), Aftermarket Crash Part, Arbitration, Assigned risk plan, Auto Replacement Coverage, Betterment, Exclusion, Full Tort, Illinois Automobile Insurance Plan (assigned risk plan), Liability, Liability Coverage, Property damage (PD), Total Loss