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Standards & Guidelines For Appraising Insurance Agencies / Brokerages 2015

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(c) DATA USED FOR ARRIVING AT THE OPINION OF VALUE

The appraiser should include a listing of the types of data relied on for arriving at the opinion of value.

(d) VALUATION METHODOLOGY AND THE APPRAISER’S OPINION OF VALUE

The appraiser should include the following valuation method information:

  • The appraisal methods used

  • Why the selected methods were used

  • A summary of the results yielded by the methods used

  • How each method was weighted in comparison to the other methods utilized

  • Explanations for any discounts and premiums that were applied

  • Explanations for any actions the appraiser took that deviate from the norm

  • Assumptions and limiting conditions made by the appraiser

(e) CERTIFICATION BY APPRAISER

The appraiser should include a certification that states, at a minimum, that . . .

  • The appraiser has no interest in the asset being appraised, or any other conflict that could cause a question as to the appraiser’s independence or objectivity; or, if such an interest or conflict exists, it must be disclosed.

  • Where appropriate, the appraiser relied on data supplied by others, without further verification by the appraiser;

  • The valuation is valid only for the valuation date indicated and for the purpose stated.

  • The certification must be signed by the appraiser.

(f) QUALIFICATIONS OF THE APPRAISER

The report should include the appraiser’s qualifications.

(g) EXHIBITS

Because every appraisal is unique, the appraiser should choose appropriate exhibits to include in the appraisal report.

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