ACV stands for which term in insurance context?

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Study for the NYS Independent Auto Damage and Theft Appraisal Adjuster Exam. Explore multiple choice questions, hints, and detailed explanations. Prepare efficiently for your appraisal adjuster license exam!

Multiple Choice

ACV stands for which term in insurance context?

Explanation:
Actual Cash Value is the amount an insurer uses to settle a claim based on the vehicle’s value at the time of loss, after accounting for depreciation. In auto damage appraisal, ACV means replacement cost minus depreciation for age, mileage, and condition, so the payout reflects the vehicle’s value in its pre-loss state, not the price of a brand-new model. The other terms listed aren’t standard insurance terminology for this purpose, so they don’t describe the value used in claims.

Actual Cash Value is the amount an insurer uses to settle a claim based on the vehicle’s value at the time of loss, after accounting for depreciation. In auto damage appraisal, ACV means replacement cost minus depreciation for age, mileage, and condition, so the payout reflects the vehicle’s value in its pre-loss state, not the price of a brand-new model. The other terms listed aren’t standard insurance terminology for this purpose, so they don’t describe the value used in claims.

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