Some Courts Have Ruled That an Alternative to "Replacement Cost

question 47

Multiple Choice

Some courts have ruled that an alternative to "replacement cost less depreciation" should be used to determine the actual cash value of a property loss.Under this alternative,the value of property lost is determined by the price a willing buyer would pay a willing seller for the property in a free market.This method of determining actual cash value is called the

• A)intrinsic value method.
• B)valued policy method.
• C)fair market value method.
• D)reconstruction cost method.

---

Definitions:

Devils Tower

A striking volcanic rock formation located in the Black Hills of northeastern Wyoming, USA.

Magma Chamber

A large reservoir in the crust or mantle that is occupied by a body of magma.

Sedimentation

The process by which particles settle out of a fluid, leading to the accumulation of solid material on the floor of a water body or other surface.

Hot Springs

Natural pools of water that are heated geothermally from the Earth's interior, often found in volcanic areas.