A federal appeals court has made it clear: property insurers can factor depreciation into actual cash value—so long as the policy spells it out plainly.
State Farm Mutual Automobile Insurance Co. is facing a lawsuit that claims the company misled customers and unfairly profited by selling insurance products from PHL Variable Insurance Co.—a firm regulators say is grappling with a staggering $2.2 billion capital deficit. The alleged shortfall reportedly resulted in policyholders receiving payouts far below what they were originally promised, raising serious questions about transparency, accountability, and who ultimately pays the price.
A federal appeals court has made it clear: property insurers can factor depreciation into actual cash value—so long as the policy spells it out plainly.
