definitions Flashcards
1
Q
how the insurance company determines appropriate amount of loss to be paid
A
loss valuation
2
Q
actual cash value
A
ACV = replacement cost - depreciation
3
Q
today’s cost/cost to replace it now
-NOT what is originally cost
A
replacement cost
4
Q
price one would pay based on market conditions (supply and demand)
-selling price
A
market value
5
Q
value of loss us determined before the policy is issued
A
agreed amount
6
Q
insured up to this amount
A
stated value
7
Q
A
