Florida Insurance Claims Adjuster License Practice Exam

What does ACV stand for in insurance terms?

1. Actual Cost Value

2. Agreed Claim Value

3. Actual Cash Value

4. Annual Coverage Value

The correct answer is: Actual Cash Value

ACV stands for Actual Cash Value in insurance terms. This refers to the amount of money that an insurance company will pay an individual for an insured damaged or stolen item. Option A, Actual Cost Value, is incorrect because it does not account for depreciation of the item. Option B, Agreed Claim Value, is incorrect because it implies that there is a predetermined amount that will be paid for a claim, which is not always the case. Option D, Annual Coverage Value, is incorrect because it does not specifically pertain to the valuation of an item.