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Standards & Guidelines For Appraising Insurance Agencies / Brokerages 2015


Assignment Definition

Before an agency appraiser can begin an appraisal, it is incumbent on the appraiser to define the assignment by identifying the following elements. The elements below represent the most commonly used elements for an agency or book of business appraisal:

  • The effective date of the appraisal

  • The purpose for the appraisal

§         Sale

§         Merger

§         Acquisition

§         Divorce

§         ESOP

§         Loan

§         Estate Planning

§         Involuntary Conversion

§         Agency Perpetuation

§         Stockholder Valuation

§         Stock redemption or stock purchase

§         Other purpose

  • The standard of value to be used

§         Fair Market

§         Going Concern

  • The asset to be valued

§         Book of Business

§         Business Entity (including the book of business)

  • The scope of the assignment

§         Full appraisal, based on all relevant information and data

§         Limited appraisal, based on limited relevant information and data

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