Which of the following is NOT a method for determining the amount of indemnity?

The method for determining the amount of indemnity refers to the approaches used to calculate how much compensation a policyholder is entitled to receive after a loss occurs. The best practices in insurance emphasize the need for an accurate and fair assessment of value without providing estimations that might lead to potential discrepancies.

The correct choice is indicative of the fact that estimated future cost is not a standard method of determining indemnity. Instead, methods like actual cash value, fair market value, and the broad evidence rule are recognized and widely used. Actual cash value calculates compensation based on the replacement cost of the item minus depreciation. Fair market value assesses what the item would sell for on the open market at a given time. The broad evidence rule allows for a wider range of factors to be considered in determining indemnity, including the replacement cost.

Thus, estimated future cost departs from the traditional and recognized methods used for indemnity, focusing instead on projections that are not based on current or tangible evaluations of value. This ultimately makes it an unsuitable approach for determining indemnity in the context of insurance claims.