Final answer:
The incorrect valuation under the general provisions of the Crime Policy is 'agreed value.' Crime policies usually cover based on actual cash value, replacement cost, or market value, not on an agreed value which is more typical in property insurance. option (A)
Step-by-step explanation:
Under the general provisions of the Crime Policy, the valuation that is incorrect is agreed value. Crime policies typically do not include an 'agreed value' option. Instead, they usually provide coverage based on either:
- Actual cash value (ACV) - This represents the cost to replace an item with a similar one at its current value, accounting for depreciation.
- Replacement cost - This refers to the cost of replacing the stolen, damaged, or lost property with a new one of like kind and quality without deduction for depreciation.
- Market value - This pertains to the price at which property would sell on the open market between a willing buyer and seller.
'Agreed value' is a term more commonly associated with property insurance, where the insurer and insured agree upon the value of insured property as a total and settle upon that value in the event of a total loss. In contrast, crime policies are concerned with the actual loss incurred, thus, 'agreed value' does not apply.