Dictionary

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VA (Department of Veterans Affairs)

An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.

VA Mortgage

A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a government mortgage.

Vacancy

The absence of people and personal property from a building, not expected to return. Property coverage is often restricted when there are long periods of vacancy, especially for the Perils of Vandalism and Glass Breakage.

Valid Contract

A contract that complies with all the essentials of a contract and is binding and enforceable to all parties to it.

Vandalism and Malicious Mischief (VMM)

Protects property against damage caused by vandals. May be added by Endorsement to the DP-1 Basic Form; included coverage in many other Property forms.

Variable Annuity

An Annuity contract in which the amount of the periodic benefits varies, usually in relation to the value of securities invested in a “separate” account, which is very similar to a mutual fund. Producers selling variable annuities or variable life insurance must also pass the FINRA Series 6 or 7 exam and be registered with the Securities Exchange Commission (SEC), since securities are regulated by Federal law. Further, most states require that producers selling variable products obtain a Variable Products endorsement to their state Life insurance license.

Variable Rate Mortgage

A mortgage loan in which the interest rate may increase or decrease at specified intervals within certain limits, based on an economic indicator or index.

Variance

A waiver from compliance with a specific provision of the zoning ordinance, for the benefit of one parcel of property only.

Vendee

A buyer.

Vendee’s Lien

A buyer’s claim against a sellers property when the seller has not delivered title to the buyer as in an installment contract or a contract for deed.