Match the term with its definition.
-An insurance term that refers to the depreciated value of property
A)actual cash value (ACV)
B)commercial general liability (CGL) insurance
C)direct loss
D)disability buyout insurance
E)disability insurance
F)indirect loss
G)loss avoidance
H)loss prevention
I)loss reduction
J)replacement value of property

Question

Quizplus · Accepted Answer

Actual cash value (ACV) refers to the depreciated value of property, which takes into account factors such as age, wear and tear, and obsolescence.

Answer: B 
 Commercial general liability (CGL) insurance provides coverage for claims made against a business for bodily injury, property damage, and personal and advertising injury.

Answer: C 
 Direct loss refers to the actual physical damage to property, such as a fire or flood.

Answer: D 
 Disability buyout insurance provides a lump sum payment to a business owner in the event they become disabled and need to sell their share of the business.

Answer: E 
 Disability insurance provides a source of income for individuals who are unable to work due to a disability.

Answer: F 
 Indirect loss refers to the financial loss that results from a direct loss, such as lost income while a business is closed for repairs.

Answer: G 
 Loss avoidance refers to the steps taken to prevent a loss from occurring in the first place, such as installing fire sprinklers in a building.

Answer: H 
 Loss prevention refers to the steps taken to minimize the risk of a loss occurring, such as implementing safety measures in a workplace.

Answer: I 
 Loss reduction refers to the steps taken to minimize the impact of a loss that has occurred, such as using backup data to restore lost information after a computer crash.

Answer: J 
 Replacement value of property refers to the amount it would cost to replace damaged or destroyed property with similar new property.

Match the Term with Its Definition