What is a market value settlement?

A market value settlement is a type of insurance claims settlement in North Carolina. When an insurance company settles a claim, they are responsible for paying the claimant the amount to repair the damages or replace the item that has been lost. A market value settlement differs in that the insurance company pays an amount that is based on the market value of the damaged property, instead of the full replacement cost of the item. For example, say that the claimant suffered damage to their car due to an accident. The market value of the car, which is determined by factors like supply and demand, age, and condition of the car, would be used to determine the amount of the settlement. In this situation, the amount paid by the insurance company may be less than the actual cost to repair or replace the car. In order to protect the claimant, North Carolina requires insurance companies to explain the difference between the actual cost and market value before they will finalize a market value settlement. The insurance company must also provide a breakdown of the market value calculation to the claimant. This helps to ensure that the claimant is not taken advantage of during the settlement process.

Related FAQs

What is an insurance fraud investigation?
What is a statute of repose?
What is a limitation of coverage?
What is an insurance claim?
How is an insurance claim dispute resolved?
What is an insurance deductible waiver?
What is an affirmative defense?
What are the different types of insurance policies?
What is the process for submitting an insurance claim?
What happens if an insurance company fails to act in good faith?

What is a market value settlement?

Related FAQs

Related Blog Posts