Opinion ID: 2633107
Heading Depth: 1
Heading Rank: 2

Heading: Policy and statutory provisions at issue.

Text: ¶ 9 The policy in effect when the property was destroyed contains provisions defining the term actual cash value and provides the manner in which losses are to be settled. Actual cash value is defined as the amount which it would cost to repair or replace damaged property with material of like kind and quality, less allowance for physical deterioration and depreciation. The policy also provides that losses will be settled as follows: (a) Losses will be settled at the actual cash value of damaged property at the time of loss. We will pay not more than the smaller of the following: (1) the cost to repair or replace the damaged property with property of like kind and quality; or (2) the limits of liability of this policy. In addition, the amendatory endorsements to the policy provide that the policy includes standard fire insurance endorsements for an Oklahoma fire insurance policy. ¶ 10 Title 36 O.S. Supp.2003 § 4803 provides in pertinent part: A. The printed form of a policy of fire insurance as set forth in subsection G of this section shall be known and designated on the standard fire insurance policy to be used in the State of Oklahoma. . . . G. The form of the standard fire insurance policy, with permission to substitute for the word `company' a more accurate descriptive term for the type of insurer, shall be as follows: . . . IN CONSIDERATION OF THE PROVISIONS AND STIPULATIONS HEREIN OR ADDED HERETO AND OF the premium above specified, this Company, for the term of . . . does insure . . . to the extent of the actual cash value of the property at the time of loss, but not exceeding the amount which it would cost to repair or replace the property with material of like kind and quality within a reasonable time after such loss . . . DIRECT LOSS BY FIRE . . . [Emphasis in original.] Section 4804 provides: No insurance company shall, knowingly, issue any fire insurance policy upon property within this state for an amount which, with any existing insurance thereon, exceeds the fair value of the property. If buildings insured against loss by fire, and situated within this state, are totally destroyed by fire, the company shall not be liable beyond the actual value of the insured property at the time of the loss or damage, and if it shall appear that the insured has paid premiums on an amount in excess of said actual value, the assured [sic] shall be reimbursed the proportionate excess of premiums paid on the difference between the amount named in the policy and said actual value, with interest at six per centum per annum from the date of issue.