Author Question: Some courts have ruled that an alternative to replacement cost less depreciation should be used to ... (Read 161 times)

madam-professor · **on:** Jul 11, 2018

Some courts have ruled that an alternative to replacement cost less depreciation should be used to determine the actual cash value of a property loss.

Under this alternative, the value of property lost is determined by the price a willing buyer would pay a willing seller for the property in a free market. This method of determining actual cash value is called the
A) intrinsic value method.
B) valued policy method.
C) fair market value method.
D) forensic cost method.

Question 2

Some states have a law that requires payment of the face amount of insurance to the insured if a total loss to real property occurs from a peril specified in the law. These laws are called

A) agreed amount laws.
B) replacement cost laws.
C) homestead laws.
D) valued policy laws.