What is the formula for ACV valuation?
Replacement Cost - Accumulated Depreciation
What are the four requirements of a legal contract?
1.) Agreement
2.) Consideration
3.) Competent Parties
4.) Legal Purpose
What is a contract of adhesion?
A contract in which one party creates the terms and allows no negotiation from the other party
What is an aleatory contract?
A contract in which the terms are dependent upon a potential future event that is uncertain
What is a unilateral contract?
A contract in which only the offeror retains obligations; the offeree is not legally obligated to uphold their side of the contract
What is estoppel?
A concept describing the inability of an insurer to backtrack on a practice that could reasonably be inferred as accepted based on past precedent.
At what percentage of fault does Modified Comparative Negligence cut off the plaintiff’s ability to recover damages based on their contribution to fault?
Modified Comparative Negligence sets the cutoff point at 50-51%, depending on the state.
What is the difference between an Admitted and Non-admitted Insurer?
Admitted insurers are licensed to provide specific lines of insurance within a given state but not surplus lines. Non-admitted insurers are NOT licensed to do business in the state but can provided surplus lines of insurance.
What is the difference between Special Damages and General Damages?
Special Damages are tangible, measurable economic damages (like medical bills, lost wages)
General Damages are intangible, non-measurable, non-economic damages (like pain and suffering)
