valued policy

  • A contract of insurance on the insured’s property that guarantees to pay a specified sum in the event of loss any time during the life of the policy.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).