In the optional replacement cost coverage provision is not selected,how are losses settled under the building and personal property (BPP)coverage form?

Question

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If the optional replacement cost coverage provision is not selected, losses are settled under the BPP coverage form at actual cash value, which is the replacement cost minus depreciation. Market value, original purchase price, and book value are not used to determine the settlement of losses under this coverage form.

In the Optional Replacement Cost Coverage Provision Is Not Selected,how