Under what circumstances may losses be compensated for actual cash value?

The correct context for compensating losses for actual cash value is primarily associated with DP-1 and DP-2 policies. Actual cash value (ACV) is commonly calculated by taking the replacement cost of the property and subtracting depreciation.

In the case of DP-1 and DP-2 dwelling policies, these forms provide coverage for dwellings on an ACV basis. The DP-1 form offers limited coverage, thus relying on ACV to ensure that insured parties receive a fair amount that reflects the property's condition and age at the time of loss, while the DP-2 form provides broader coverage but still uses ACV for specific types of property claims, typically for contents or personal belongings.

The other options do not specify situations where ACV applies correctly. Some mentions of broad form or other policies may not directly relate to the specifics of ACV coverage in these dwelling forms. Therefore, the primary context for ACV in the Iowa Personal Lines is indeed within the framework of DP-1 and DP-2 policies.