Washington Supreme Court: Actual Cash Value Includes Sales Tax

 Thursday, September 23, 2010

 Insurance Journal

The Washington Supreme Court has ruled that an insurer is required to pay sales tax when reimbursing a client for the actual cash value (ACV) of damaged property. According to court documents in Laura Holden v. Farmers Insurance Co. of Washington, Holden purchased a renter's insurance policy from Farmers that provided coverage for ACV of damaged property due to fire. ACV was defined as fair market value in the policy.
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