C. Loss Valuation Flashcards
1
Q
Actual Cash Value (ACV)
A
Method of valuation reinforces the principle of indemnity because it recognizes the reduction of value of property as it ages and becomes subject to wear and tear & obsolescence.
2
Q
Replacement Cost
A
Cost to replace damaged property with like and quality at today’s price.
3
Q
Market Value
A
A Seldom used method of valuing a loss based upon the amount a willing buyer would pay to a willing seller for the property prior to the loss.
4
Q
Stated Value
A
Amount of insurance scheduled in a property policy that is not subject to any coinsurance requirements in the event of a covered loss.
-Not subject to coinsurance.
5
Q
Salvage Value
A
Estimated value an asset will realize upon its sale at the end of its useful life.
6
Q
A
