The ____________ Method to Settle Claims Is Based on the Current

question 53

Multiple Choice

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

• A)replacement value
• B)actual cash value
• C)umbrella
• D)endorsement
• E)personal articles endorsement

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Definitions:

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation used for tax purposes in the United States, allowing businesses to recover investments in certain property through deductions over a specified life.

Equipment

Tangible physical assets used in the operation of a business, such as machinery, computers, or tools.

Buildings

Structures that are constructed for residency, business, storage, or other purposes, recognized as fixed assets on a balance sheet.

Marketing Analyses

Comprehensive evaluations that use market data, trends, and strategies to identify the viability of a new product, the effectiveness of a marketing plan, or the potential for market growth.