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Last Post 11/12/2010 10:25 PM by  Ray Hall
Valued Policy States and Insurance Terms
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Adjuster John
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11/07/2010 10:16 PM
    Is Indiana a Valued Policy state?  Loss in question is a commercial fire loss.  I do not believe Indiana is a Valued Policy state but I want to confirm.  In addition, where can I find definitions set forward by the state of Indiana for 'total loss' and 'ACV'?  I have searched through the INDOI website but have not found anything that provides definitions for those terms as provided byt he state.
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    Leland
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    11/12/2010 4:06 PM
    I looked around too, and couldn't find any reference. It probably isn't a valued policy state, otherwise one of us would have found a reference to it.

    You can always call the Indiana Consumer Affairs or IDOI phone number and ask.

    I couldn't find an Indiana definition of "total loss" but here is what I found re "Actual Cash Value":

    Indiana courts employ the “Broad Evidence Rule” to determine the actual cash value of property
    subject to a loss. See, Travelers Insurance Co. v. Armstrong, 442 N.E.2d 352 (1982).

    Each state can have a different definition on these terms, so it is a reasonable question to ask.

    Supposedly there are are 19 states with value policy laws. I couldn't find a complete list, but these might be a correct partial list:

    Florida, Texas, Missouri, Louisiana, Wisconsin, Arkansas, Mississippi, Minnesota, West Virginia, Tennessee, New Hampshire, Ohio

    Each state may be a little different on how they define what types of losses get paid under the statute.

    Typically the loss will need to be a total loss and only from certain perils, perhaps only fire, or at least with fire being involved.

    But again, "total loss" may have a different definition in different states.

    Here is a link to a Louisiana case:

    https://litigation-essentials.lexis...4f4a2c6cd3

    and a Florida case:

    www.floridainsuranceblog.com/2009/03/articles/insurance-coverage-homeowners/1st-dca-rules-on-valued-policy-law-debris-removal-law-and-ordinance-and-prejudgment-interest/

    and a very important Florida ruling reversing the Mierzwa decision, that put insurance companies on the hook for policy limits when the house was only a little bit damaged by a covered peril:

    http://webcache.googleusercontent.c...clnk&gl=us
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    Ray Hall
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    11/12/2010 10:25 PM

    Tx. is a liquidated demand state for the policy limit for fire only on buildings. on the fire insurance contracts only.(not many byildings insured under inland marine)

    Something we seldom see now days is the return premium is due and payable @ midnight of a total fire loss. Most insureds do not present the policy to the agent and most adjusters do not cover this in the closing report. Wayback in the old days the claim dept. had to refund, reduce or reinstate the policy in the  loss draft language. This was also the days of 5, 3 and 1 year policy,s.

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