1) The cost of replacing or restoring property at prices prevailing at the time and place of the loss, less depreciation, however caused; 2) replacement cost minus depreciation.
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Method for placing value on property at the time of its loss or damage. ACV is usually the cost less depreciation. The market value of the property may help determine its actual cash value.
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An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss. For real property, this amount can be based on a determination of the fair market value of the property before and after the loss. For vehicles, this amount can be determined by local area private party sales and dealer quotations for comparable vehicles.******Medical: Flexible valuation standard, most often defined as the current replacement of an item of property minus its accumulated depreciation.Insurance provision in which the policy owner receives a dollar amount that is equal to the replacement value of damaged property minus the depreciation.
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Similar to market value; this amount is the cost of replacing damaged or destroyed items with new property. Consideration is given to the condition and depreciation of the item.
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A method for placing value on property as of the time of its loss or damage. Actual cash value may be determined by market value (the current price for a like item in the same general condition) or replacement cost new less use depreciation (the cost of the same item branch new minus the insured’s contribution to pay for the added life expectancy of the property new property). The insured may generally select whichever method is more favorable. Contrast with replacement cost.
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“Insurance companies use two primary methods of calthe amount of payment given to a policyholder for insured losses to both real and personal property. Actual cash value is one method; the other is replacement . The key difference between the two methods is .
Actual cash value (ACV) is the method commonly preby insurance companies. The actual cash value is equal to the replacement cost minus depreciation. The purpose of ACV is to put the insured back into the same financial condition he or she was before the loss. For example, if an insured owns a 10-year-old car and has an automobile accident, he or she is entitled to aftermarket or rebuilt parts in order to put the insured back in a 10year-old car. To put original equipment manufacturer (OEM) parts results in “”betterment” or increasing the value of the damaged property after a loss. If OEM parts are all that is available, the insurance company will pay only for what the rebuilt or aftermarket parts would
have cost. (See Aftermarket Parts). Depreciation is based on the age of the property damaged and the extent of wear and tear. The language of most insurance policies states that the company has the option of repairing or replacing with “”like kind or quality.”” For example, an insured who purchases an inland marine policy to cover jewelry may have the insurance company replace a stolen Rolex with another Rolex rather than pay the insured cash.
(See Replacement Cost Coverage)”
An appraisal to determine the actual cash value of a building and related personal property.
1. Fee the physician charges for service or supplier bills for a supply item at the time the insurance claim is submitted to the insurance company or government payer. 2. In the Medicare program, the fee is often more than the amount Medicare approves. See approved charge and assignment.
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The actual amount charged by a Medical Practitioner for medical services rendered.
A term used to distinguish from a valued form.
This term derives from section 57 of the Marine Insurance Act 1906 (MIA) and refers to situations in marine insurance where;(a) the subject matter of the insurance is destroyed, (b) the subject matter of the insurance is so damaged as to be no longer be capable of still being described as the thing insured; or (c) the insured is deprived of the subject matter of the insurance forever. Section 58 of the MIA adds that where there is no news of a missing ship then after a reasonable period an actual loss may be presumed.
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According to the Marine Insurance Act, s.57, this occurs in three ways: (a) destruction of the subjectmatter; (b) subject-matter so damaged that ceases to be a thing of the kind insured (loss of specie’, e.g. cement becomes concrete); (c) the insured is irretrievably deprived of the subjectmatter. A fourth way (s.58) provides that if, after a reasonable time, there is no news of a missing ship, actual total loss is presumed.
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Actual total loss occurs (a) When the subject matter of the insurance is destroyed there is a clear case of actual total loss. The word “destroyed” is not to be interpreted literally. If a vessel is badly damaged by fire reducing it to charred metal, absolutely beyond repair, it is deemed to be total loss. Thus, total physical destruction is not contemplated. (b) When the goods are so damaged that they cease to be thing of the kind insured. This is known as “loss of specie.” If a vessel collides with rocks and is reduced to a complete state of dismemberment, thereby losing its characteristics form a ship fit to carry goods, an actual total loss occurs. When the sugar may be so damaged by sea water as to lose its character as sugar, there will be an actual total loss. Cement damaged by sea water may turn into concrete. Fish, fruit and other perishable goods may be so damaged by fermentation or putrefaction caused by sea water damage that they will lose their original character of the commodity insured. (c) Where the goods are so situated that the insured is irretrievably deprived of their possession. e.g., goods may be intact on a ship which has been captured during war and not released. If vessel founders at sea and it is practically impossible to save her by salvage measures an absolute total loss occurs. Cargo on board the vessel will also be actual total loss although it may be still intact. If a ship is missing and that if no news has been received after the lapse of a reasonable period, she is presumed to be an actual total loss by a marine peril.
Having to do with insurance mathematics. Describes the calculations made by an actuary. Actuarial calculations require basic data over a sufficient time period to permit likelihood of future vents to be predicted with a degree of certainty.
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Statistical calculations used to establish a managed care plan’s rates and premiums based on future projections of utilization and cost for a specific member or subscriber population.
Assumptions made by an actuary as a basis for the figures and estimates needed for an actuarial valuation. The assumptions are based around life expectancy, inflation, earnings levels and income from pension scheme investments. See ACTUARIAL REPORT.
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Mediical/US:1. Characteristics used in calculating the risks and costs of a plan (i.e., age, sex, and occupation of enrollees; location; utilization rates; and service costs) to calculate premium rates and reserves. 2. In relation to pension plans, these assumptions affect the amount of the yearly contribution to adequately fund a defined benefit pension plan (DBPP).
Difference between the summarized income rate and the summarized cost rate over a given valuation period.
Indicates either or both of the valuation method and the actuarial assumptions made for the purpose of an actuarial valuation.
Issued by an actuary arising out of actuarial work. The work may include: (a) carrying out the solvency test required by some contracted out schemes; (b) certifying to the IR that pension scheme surpluses have been dealt with as required under ss.599A602, ICTA 1988; (c) the position on the minimum funding requirement under the Pensions Act 1995 ss.56-60; (d) the bulk transfer certificate under Regulation 12 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (SI 1991/167).