SENATE BILL 5923
State of Washington 52nd Legislature 1991 Regular Session
By Senators Owen and Snyder.
Read first time March 5, 1991. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to definitions in insurance contracts; and adding a new section to chapter 48.18 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 48.18 RCW to read as follows:
Unless otherwise defined in a contract of insurance on property when used as a basis for loss adjustment, the term "actual cash value" means the cost of replacement less such depreciation as is properly applicable to the subject insured.
For purposes of this section, the term "cost of replacement" means the amount necessary to duplicate the subject insured as it existed at the time of loss with a structure of like kind and quality using new materials.