Under the farm property form with replacement cost coverage, after the first $1,000 how is the claim paid?

ACV until repairs are completed and then the full replacement cost is paid

ACV until the proof of loss is sent to the insurer

ACV until the loss is paid by the insurer

ACV unless the 80% of the total loss

Answer: ACV until repairs are completed and then the full replacement cost is paid

Alabama Property and Casualty

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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The voluntary relinquishment of a legal right is called
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