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Standards & Guidelines For Appraising Insurance Agencies / Brokerages 2015

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Appraisal Report Format

WRITTEN REPORT IS REQUIRED

Although an oral report may be provided to the appraiser’s client, the appraiser should also issue a written report to the client.

CONFIDENTIALITY

Only the client should receive copies of the appraisal report. When the appraiser knows that others will receive a copy of the appraisal report, these copies should be provided to the client for distribution.

CONTENT OF THE APPRAISAL REPORT

The appraisal report should, at a minimum, include the following sections or data:

(a) DEFINITION OF THE ASSIGNMENT

  • The following information should be defined:

  • The business interest and the assets being valued

  • The purpose and use of the valuation

  • The standard of value used in the valuation

  • The effective date and report date

  • The name of the person or entity that hired the appraiser

(b) AGENCY DESCRIPTION

The description should include relevant factual areas, such as:

  • The form of the agency’s organization (corporation, partnership, sole proprietorship, etc.)

  • The agency’s history

  • The evolution of the agency’s ownership
  • The types of policies written and services provided

  • The markets and customer demographics

  • Management information

  • Sources of information used

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