If an insured submits a claim for a seven-year-old refrigerator that was damaged due to lightning, the adjuster will probably factor in an allowance for wear and tear. This is called

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If an insured submits a claim for a seven-year-old refrigerator that was damaged due to lightning, the adjuster will probably factor in an allowance for wear and tear. This is called

A. Replacement cost.

B. Depreciation.

C. Stated amount.

D. Agreed amount.

Answer: B

AINS Chapter 6

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