actual cash value News

Viewpoint: Defining the Doctrine of Prevention in Texas

Property insurance claims involving disputes about whether the insured is entitled to replacement cost value (RCV) typically involve whether the insured has actually repaired the damaged property. This is in large part because replacement cost provisions typically restrict an insured’s …

Divided Appellate Panel Upholds Total Loss Valuations Using CCC Software

An insurer that used CCC Intelligent Solutions software to determine the payout for a claimant’s vehicle did not violate a Florida law that sets forth only three methods that auto insurers may use to determine actual cash value, a divided …

Insurer Faces Class Action for Depreciating Labor in Actual Cash Value Payments

Two Trumbull Insurance customers who believe they were short-changed on claims payments have filed a proposed class action suit against the insurer, alleging Trumbull has been incorrectly calculating some property claim payments by deducting labor depreciation. The complaint (Grawe v …

Viewpoint: Courts Split on Labor Cost Depreciation Impact on Actual Cash Value

Courts are split on the question of whether it is permissible to depreciate labor costs when determining actual cash value (“ACV”). The Illinois Supreme Court’s decision in Sproull v. State Farm Fire and Casualty Co., (9/23/21), affirming the appellate court …

Appraisals, Water Damage Fraud Among ‘New Normals’ Discussed at PLRB

SAN ANTONIO, Texas — The use of appraisals to resolve insurance claims disputes is the new normal, even though insurers don’t trust the process to bring about a fair result, an attorney and a claims examiner said Monday during the …

Property Insurance Reform Bill Dies as Fla. Legislative Session Draws to a Close

With just two days left in the 2022 Florida legislative session, a comprehensive property insurance reform bill appears to be dead. But lawmakers were said to be looking for ways to fold some of the main provisions into other bills …

6th Circuit Approves Class Action for Ky. Underpayments by State Farm

A federal appellate court has cleared the way for a class-action lawsuit to proceed against State Farm Fire and Casualty Insurance Co. that may force the insurer to correct underpayments paid to some 65,000 policyholders. A 6th Circuit Court of …

6th Circuit Affirms Class Action Suit to Collect Underpayments by State Farm

A federal appellate court has cleared the way for a class-action lawsuit to proceed against State Farm Fire and Casualty Insurance Co. that may force the insurer to correct underpayments paid to some 65,000 policyholders. A 6th Circuit Court of …

6th Circuit Sides With Policyholder in Depreciation for Labor Costs Dispute

Ohio law does not allow Allstate to include labor costs when calculating the amount of depreciation for a property damage claim, a split panel of the 6th Circuit Court of Appeals ruled, resolving a split among state appellate districts and …

N.C. High Court: Actual Cash Value Includes Depreciation for Labor Costs

An insurer whose policy covers the “actual cash value” of a property may deduct for depreciation of labor costs when it calculates the amount of the loss, the North Carolina Supreme Court ruled. The court noted that the question of …