MI | The Michigan Department of Insurance and Financial Services has issued Bulletin 2024-26-INS, superseding Bulletin 2024-18-INS, issued on July 3, 2024.
The Director of the Department of Insurance and Financial Services (DIFS) is aware that some insurance policies include depreciation of labor and certain other nontangible items in the definition of “Actual Cash Value” (ACV).
ACV is ordinarily understood to mean the loss of value due to wear and tear, deterioration, and obsolescence to physical or tangible items. Nontangible items such as labor are not physical objects and do not deteriorate, age, or decline in value.