Insurer Not Allowed To Depreciate Labor Costs, Arkansas High Court Says
Mealey's (December 17, 2015, 1:13 PM EST) -- LITTLE ROCK, Ark. — Insurance companies cannot depreciate labor costs in calculating actual cash value payments for property losses, the majority of the Arkansas Supreme Court ruled Dec. 11, holding that the practice violates state law (Shelter Mutual Insurance Co. v. Michael Goodner and Robbie Goodner, No. CV-15-111, Ark. Sup.).
(Opinion available. Document #69-160108-008Z.)
On July 9, 2012, property owned by Michael and Robbie Goodner incurred a loss covered by their mobile homeowners insurance policy. Shelter Mutual Insurance Co. estimated the total restoration cost to be...