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Simple English definitions for legal terms
progressive loss
Read a random definition: Act of Settlement
A quick definition of progressive loss:
Progressive loss is when something gradually gets worse or decreases in value over time. For example, if a car gets older and starts to break down, it is experiencing progressive loss. This can be a problem if you need to sell the car or if you rely on it for transportation. Progressive loss can also happen with things like investments or property. It is important to keep track of any progressive loss so you can make informed decisions about what to do with the affected item.
A more thorough explanation:
Progressive loss is a term used to describe a gradual and continuous decrease in value or quality of something. It can refer to various situations:
- In finance, it can be the loss of value of an investment over time.
- In insurance, it can be the amount of financial damage caused by an insured person's death or an insured property's damage.
- In tax, it can be the excess of a property's adjusted value over the amount realized from its sale or other disposition.
For example, if you own a car and its value decreases over time due to wear and tear, that's a progressive loss. Similarly, if you have a stock that loses value gradually over several months, that's also a progressive loss.