Article 2. Types Of Policies of California Insurance Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 2.

A policy is either open or valued.

An open policy is one in which the value of the subject matter is not agreed upon, but is left to be ascertained in case of loss.

A valued policy is one which expresses on its face an agreement that the thing insured shall be valued at a specified sum.

A running policy is one which contemplates successive insurances, and which provides that the object of the policy may be from time to time defined, especially as to the subjects of insurance, by additional statements or indorsements.