What is the Definition of Actual Cash Value?

What is the Definition of Actual Cash Value?

A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation. (See Replacement cost)

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

What is the Definition of Actual Cash Value?

Label: Insurance

Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Insurance?

What is the Definition of Actual Cash Value?

Check out other definition of insurance terms below:

What is the Meaning of RATED POLICY In Insurance Terms?

An insurance policy that is classified as having a greater-than-average likelihood of loss, usually issued with special exclusions, a premium rate that is higher than the rate for a standard policy, a reduced face amount, or any combination of these.

What is the Meaning of RATING AGENCIES In Insurance Terms?

There are several major credit agencies that determine insurers’ financial strength and viability to meet claims obligations. They include A.M. Best Co.; Fitch, Inc.; Moody’s Investors Services; Standard & Poor’s Corp.; and Weiss Ratings, Inc. Factors considered include company earnings, capital adequacy, operating leverage, liquidity, investment performance, reinsurance programs, and management ability, integrity and experience.

What is the Meaning of RATING BUREAU In Insurance Terms?

The insurance business is based on the spread of risk. The more widely risk is spread, the more accurately loss can be estimated. An insurance company can more accurately estimate the probability of loss on 100,000 homes than on ten. Years ago, insurers were required to use standardized forms and rates developed by rating agencies. Today, large insurers use their own statistical loss data to develop rates. But small insurers, or insurers focusing on special lines of business, with insufficiently broad loss data to make them actuarially reliable depend on pooled industry data collected by such organizations as ISO, which provides information to help develop rates such as estimates of future losses and loss adjustment expenses like legal defense costs.

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