Encyclopædia Britannica, Ninth Edition/Adjustment

For works with similar titles, see Adjustment.

​Adjustment, in Commerce, the settlement of a loss incurred at sea on insured goods. If the policy be what is called an open one, and the loss of the goods be total, the insurer must pay for them at the value of prime cost, which includes not only the invoice price of the goods, but all duties paid, the premium of insurance, and all expenses incurred on them when put on board. If the policy be a valued one, and a total loss be incurred, then they are settled for at the valuation fixed at the time of the insurance, unless the insurers can prove that the insured had not a real interest in the goods, or that they were over valued. In case of a partial loss, the value of the goods must be proved. (See Arnould On Marine Insurance.)

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