Insurance 101 – Chapter 9 – Volume 61 – Flexible Definition

Flexible Definition

The definition established by the California Supreme Court in Jefferson and applied by the Court of Appeal in Elliano and Cheeks were fair and reasonable when considered in light of the fact situations in which they were decided. They should not be construed, in California, or in any other state, as hard and fast rules without room for subjective  modifications to provide true indemnity. It is the application of such subjective  modification that should be an expression of the insurer’s good faith attempt to provide true indemnity. An inflexible definition of actual cash value appears to work to defeat the true purpose of insurance.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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