§ 1962 Actual Total Loss Causes

Insurance Code·California

AI SummaryVerified

This law says a loss is a total loss when the insured thing is completely destroyed, sinks, breaks apart, becomes worthless, or is taken away so the owner can’t have it at the destination.

Key Takeaways

•Total loss means the insured item is totally gone or destroyed.
•It includes sinking, breaking up, or damage that makes the item worthless for its intended use.
•It also covers any event that takes the item away so the owner can’t have it at the destination.

Example

A truck carrying a shipment of fresh fruit crashes into a river and the cargo sinks and is ruined.

Because the fruit is completely gone and the owner can’t get it at the delivery point, the insurance treats it as an actual total loss and will pay the full value.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1962 Actual Total Loss Causes

An actual total loss is caused by: (a) A total destruction of the subject matter of insurance. (b) The loss of the subject matter by sinking, or by being broken up. (c) Any damage to the subject matter which renders it valueless to the owner for the purposes for which he held it. (d) Any other event which entirely deprives the owner of the possession, at the port of destination, of the subject matter. (Enacted by Stats. 1935, Ch. 145.)

Last verified: January 11, 2026

Key Terms

actual total loss subject matter of insurance port of destination

References

Official text at leginfo.legislature.ca.gov
California Legislature. Insurance Code. Section 1962.

§ 1962 Actual Total Loss Causes

Insurance Code·California

AI SummaryVerified

§ 1962 Actual Total Loss Causes

This law says a loss is a total loss when the insured thing is completely destroyed, sinks, breaks apart, becomes worthless, or is taken away so the owner can’t have it at the destination.

Key Takeaways

•Total loss means the insured item is totally gone or destroyed.
•It includes sinking, breaking up, or damage that makes the item worthless for its intended use.
•It also covers any event that takes the item away so the owner can’t have it at the destination.

Example

A truck carrying a shipment of fresh fruit crashes into a river and the cargo sinks and is ruined.

Because the fruit is completely gone and the owner can’t get it at the delivery point, the insurance treats it as an actual total loss and will pay the full value.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1962 Actual Total Loss Causes

Last verified: January 11, 2026

Key Terms

actual total loss subject matter of insurance port of destination

References

Official text at leginfo.legislature.ca.gov
California Legislature. Insurance Code. Section 1962.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References