DC| The District of Columbia Department of Insurance, Securities and Banking issued Bulletin 25-IB-001-08/12, clarifying that depreciating labor and other nontangible items (such as taxes, fees, and overhead/profit) in calculating “actual cash value” (ACV) for property insurance claims is considered an unfair claims settlement practice under D.C. law. As a result, property and casualty insurance policy forms containing provisions that allow for the depreciation of labor will not be approved for use in the District of Columbia.
- Depreciation of labor and other nontangible items in ACV calculations is prohibited and viewed as unfair under D.C. Code § 31–2231.17(b)(6).
- Insurance policy forms submitted for approval in D.C. must not include language allowing for labor depreciation.
