One person handing an insurance check to another. Legal attacks on the principle of indemnity have left the insurance industry in a position that undeniably violates their rights to calculate a policyholder's economic loss in certain jurisdictions, and thus leaves the policyholder in a "better than" pre-loss condition. (Photo: Andrey_Popov/Shutterstock)

Actual cash value (ACV) clauses have existed in insurance policies for more than a century. ACV is a valuation method that seeks to determine the appropriate amount to indemnify policyholders for their loss and put them back in a position that is neither better nor worse than they were had no loss occurred.

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