Some courts have ruled that an alternative to “replacement cost less d

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) forensic cost method.

ANSWER

Answer: C