Insurance 101 – Chapter 8 – Volume 78 – Betterment – 3

Betterment – 3

In using fair market value as the test for actual cash value in the loss of an automobile, the Court was assisted by the fact that the  automobile had been recently purchased by the insured, that there was a great deal of market information available for such a vehicle, and that one Buick sedan is identical to another of the same year and model. The court therefore concluded that market value at the time of the loss for the entire vehicle was easily ascertainable. This was not a conclusion that fair market value was the only means of establishing actual cash value, only that it was the best method to totally indemnify the insured for the loss of that particular automobile.

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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