A collector schedules a painting on an inland marine floater using an 'agreed value' endorsement at $80,000. The painting is stolen. Which statement best describes how the insurer settles the claim?

Why this is the answer

Three valuation methods appear on schedules: (1) ACV — replacement cost minus depreciation, the default; (2) Stated value — insurer pays the lesser of the stated amount or ACV at loss; used for autos and some equipment; still subject to depreciation. (3) Agreed value — insurer and insured agree upfront that the scheduled amount IS the value; at total loss the insurer pays 100% with no depreciation deduction and no coinsurance clause applies. Fine art and antiques are typically scheduled at agreed value because their market value can be difficult to determine and may appreciate over time. Per FL Outline §II, loss valuation including stated/agreed value is explicitly tested.