How are physical damage losses normally settled under the Personal Auto Policy Part D?
Explanation
Unless an optional endorsement (such as Auto Loan/Lease Coverage CA 23 04 or Replacement Cost endorsement) is added, Part D pays the lower of (a) the actual cash value (ACV) of the damaged property or (b) the amount necessary to repair or replace the property with like kind and quality, less the applicable deductible. ACV is generally market or book value at the time of loss, taking depreciation into account.
Law Reference: ISO PAP Part D loss settlement; ACV principleThis topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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