Loss Valuation Flashcards
1
Q
Reinforces the principle of indemnity
A
Actual Cash Value
2
Q
Equation for ACV
A
Current Replacement cost - Depreciation
3
Q
Contrary to the basic of cost of indemnity
A
Replacement cost
Cost to replace damage property w/o deduction for depreciation at today’s price
4
Q
Cost to replace using modern/less expensive material
A
Functional Cost
5
Q
Considers the value of land and location
A
Market Value
6
Q
Specified, regardless of appreciation/depreciation
A
Agreed Value
Fair at time written
7
Q
For items that value does not fluctuate much
A
Agreed Value
8
Q
Max amount the insurer will pay
A
Stated value
9
Q
Not subject to any coinsurance requirements
A
Stated Value
