Actual cash value acv - Study guides, Class notes & Summaries

Actual Cash Value - Replacement Cost minus Depreciation. Depreciation (%) = Age/Useful Life ACV = RC - Depreciation Highest depreciation is usually 80% In property insurance, indemnification is usually based on the actual cash value of the property at the time of the loss. EXAMPLE: Roof installed in 2012 for $5000 & has a useful life of 20 years. It will cost $6000 to replace based on current costs. After depreciation, the ACV is $3600. Depreciation is 40% (8 years old / 20 year useful l...

New York Life Insurance Questions and Answers Already Passed Accelerated Benefits Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses. Accidental Death Benefits A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death. Accidental Death Insurance An insurance policy that provides payment if the insured's death is the result of an acc...

State Farm Insurance License Exam Questions and Answers 2024/2025 complete solution ( A+ GRADED 100% VERIFIED) Abandonment Condition - ANS A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. Accident - ANS A loss that occurs at a specific time and place Actual Cash Value (ACV) - ANS Today's replacement cost minus depreciation. Depreciation from wear and tear, o...

Texas Property & Casualty Adjusters Study Questions EXAM ALL QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+ (BRAND NEW!! What is the formula for figuring Actual Cash Value(ACV)? - CORRECT ANSWER Replacement cost minus depreciation equals ACV Define the appraisal process. When would the appraisal process be appropriate? - CORRECT ANSWER Used for value disputes. Each party selects an appraiser & umpire to make the decision. Which Personal Auto Policy coverage covers L...

Accumulated Depreciation - ANSWER The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of years used) Actual Cash Value (ACV) - ANSWER A valuation method used by insurers to reflect an item's current market value right before being damaged or destroyed. Formula: (Replacement cost - Accumulated Depreciation) Adhesion - ANSWER One of the characteristics of an insurance contract. Means that one party (the insurer) sets the terms, an...

Adjuster Pro - Florida Certified Adjuster Glossary Exam Prep 2023. Accumulated Depreciation - ANSWER The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of years used) Actual Cash Value (ACV) - ANSWER A valuation method used by insurers to reflect an item's current market value right before being damaged or destroyed. Formula: (Replacement cost - Accumulated Depreciation) Adhesion - ANSWER One of the characteristics of an insurance contrac...

AINS 101 Exam; Questions and Answers 100% Solved Actual cash value (ACV) Correct answer The cost to replace property with new property of like kind and quality less depreciation. Adverse selection Correct answer Insuring individuals with a high probability of loss at a cost lower than the insurer would normally charge for that risk because it wasn't aware of the actual risk involved. Binder Correct answer A temporary written or oral agreement to provide insurance coverage until a f...

Accident Insurance - ANSWER Covers expenses associated with a covered accident and can extend to ambulance and emergency room expenses, intensive care, and hospital costs. Accident insurance also provides for loss of income, and a death benefit if injuries prove fatal Accumulated Depreciation - ANSWER The total decrease in an item's value over a period of time. Formula: (annual depreciation x number of years used). Subtract this number from the item's replacement cost to get its ac...

Exam Fx-Property and Casualty Exam Questions and Answers 100% Pass To be considered an insurable risk, a loss may NOT be catastrophic Which of the following persons would be required to hold a producer license? a nonresident agent who negotiates insurance contracts Which of the following is the oldest known type of insurance? ocean marine The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks? the difference in the actual cash va...