Category: | Insurance agency, |
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Address: | 201 Broad St, Stamford, CT 06901, USA |
Postal code: | 06901 |
Phone: | (203) 975-2100 |
Website: | https://www.rvigroup.com/residual-value-insurance/ |
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Residual value insurance helps companies manage asset value risk by guaranteeing that a properly maintained asset will have a specified value at a future date. This type of coverage ensures asset values, making risk counter-cyclical to inflation. It is an enormously flexible tool with benefits that range from simple risk mitigation to complex ...
What is Residual Value Insurance? An RVI policy gives the owner of a vessel downside protection by guaranteeing the value of a properly maintained vessel. At the end of the policy, if the market value of a sale price for the ship is below the insured amount, the insurer would make up the difference or purchase the vessel for the insured amount.
Scope: Residual Value Insurance helps companies manage asset value risk by guaranteeing that a properly maintained asset will have an agreed value at a future date. In most cases RVI is used in lease and financing structures where there is a risk that the value of the asset will be less than the final payment due to the financiers (the balloon ...
Residual Value Insurance — guarantees the owner of leased personal property (e.g., autos or equipment) a particular value at a specified future date, usually the termination of the lease. Covers the difference between the actual liquidated value of property returned to the insured lessor and the expected value of the property specified in the ...
Real estate clients use residual value insurance to increase the loan-to-value ratios of credit tenant lease financings by insuring the final balloon payment on an extended amortization loan. RVI Group Locations. Main Office 201 Broad Street, 6th Floor Stamford, Connecticut 06901
Residual value insurance accounted for more than 97% of the company's business that year. The company accounted for the premiums it collected like an insurance company. Insurance companies are allowed by section 832 of the US tax code to spread out the premium income over the years that claims are expected to be paid. The IRS said the company ...
When payment under the residual value insurance contract is based on an index (e.g., the Blue Book value for automobiles), instead of the value of a specific nonfinancial asset, the contract would not qualify for the scope exception under ASC 815-10-15-59 and would be accounted for as a derivative. Conversely, settlement based on using the appraisal value or the sales proceeds of the specified ...
Tokio Marine HCC underwrites Residual Value Guarantees (RVG) for aircraft, commercial real estate and other assets. RVG insurance protects policyholders against unforeseen loss of value of an asset by guarantying a future value. RVG may be used to ensure asset value, to obtain better financing terms or in corporate accounting.
It's that sort of risk that RVI's residual value insurance covered -- RVI would pay the $20,000 difference in the above example, i.e ., the difference between the expected value of the leased ...
Tokio Marine HCC underwrites Residual Value Guarantees (RVG) for aircraft, commercial real estate and other assets. RVG insurance protects policyholders against unforeseen loss of value of an asset by guarantying a future value. RVG may be used to ensure asset value, to obtain better financing terms or in corporate accounting.