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Question
A method of valuing insured property or the value computed by that method is known as
Options:
A .  Actual cost validity
B .  Actual cash value
C .  Replacement cash value
D .  Normal cost value
Answer: Option B


Actual Cash Value (ACV) is a method of valuing insured property or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost.



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