Archives: Loss Measurement

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Missing Millions, An Armored Car Conspiracy, And A Fraudulent Connecticut Insurance Application

In determining whether or not to provide insurance to a particular applicant, one thing that insurance companies typically rely on is the insurance application submitted by the prospective insured. The application is designed to provide the insurance company with, among other things, a comprehensive overview of the risk to be insured. Given the importance of … Continue Reading

Dispute Over Actual Cash Value, Replacement Cost Value, and Inclusion of Law & Ordinance Costs in Loss Measurement: Ninth Circuit Weighs in on California Law

The difference between Actual Cash Value (“ACV”) and Replacement Cash Value (“RCV”), and whether increased costs to comply with building codes are part of RCV can be significant in cases involving a proper loss measurement determination. In Sierra Pacific Power Company v. Ram Hartford Steam Boiler Inspection & Insurance Company, 2012 U.S. App. LEXIS 15559 … Continue Reading

Florida 5th District Court of Appeal Requires Showing of Prejudice For Failing To Submit To An EUO Before Suit Is Filed

Policies typically require an insured to submit to an Examination Under Oath (“EUO”) at the request of the insurer. The EUO can be a useful tool during claim adjustment in reaching a fair and informed coverage decision by allowing the insured to explain the facts and circumstances surrounding the claimed loss and substantiating valuation of … Continue Reading

Insurance Company’s Waiver of Right to Pay Actual Cash Value (ACV)

Property insurance policies typically require that the insured repair or replace the damaged property before recovering on a replacement cost value (RCV) basis.  The difference between RCV versus actual cash value (ACV) can be substantial, especially where an older building is involved.  The Indiana Court of Appeals recently held that an insurer can waive its … Continue Reading

Georgia Court Considers Cost of Repair/Diminution in Value Regarding Property Damages

The Supreme Court of Georgia recently held that a property insurer potentially was required to compensate an insured for both the cost of building repair, as well as for the diminution of value of the property resulting from the damage, even after repairs were completed. This diminution in value potentially could result, for example, from … Continue Reading