Under the Arkansas Valued Policy Law, what is true about total loss of a building?

Under the Arkansas Valued Policy Law, the provision specifically addresses the circumstances relating to the total loss of a building. This law stipulates that in the event of a total loss, such as through fire or other catastrophic events, the insurer is required to pay the insured the full amount specified in the policy, regardless of the current market value at the time of the loss.

This law is designed to assure policyholders that they will receive the agreed-upon payout in the event that their property is completely destroyed, thereby providing financial protection and clarity regarding the insurer's obligations. The focus on total loss is critical, as it ensures that homeowners or property owners can recover adequately without suffering financial loss due to depreciation or other factors affecting market value.

While the other options touch upon aspects of insurance coverage, they do not accurately capture the specific provision that the Arkansas Valued Policy Law pertains to total losses exclusively. Thus, the highlighted answer appropriately reflects the law's intent and application concerning total losses of buildings, ensuring it serves as the correct understanding of the law within the context provided.