Cal Fair Plan Suggests that 2695.9. only applies to RCV policies. They suggest that the verbiage outlined in section 2695.9. (a) only applies to RCV policies and not ACV policies.
“When a residential or commercial property insurance policy provides for the adjustment and settlement of first party losses based on replacement cost, the following standards apply:”
We have insisted that the definition of an ACV policy is in fact; replacement cost less depreciation. To that end my covered claim is based on replacement cost. I have discussed this matter with numerous individuals including my broker, two additional brokers, and 3 different insurance attorneys here in the state of California. None of these individuals had ever heard of a carrier ignoring any portion of the rules and regulations outlined by The California Department of Insurance due to having an ACV policy.