(1) The amount of losses for which an insurer is to compensate shall be determined based on the value when and where such losses have occurred: Provided, That if the parties have agreed otherwise, the amount of losses may be calculated on the basis of the replacement cost value. <Amended by Act No. 4470, Dec. 31, 1991>
(2) Expenses incurred in determining the amount of losses referred to in paragraph (1) shall be borne by the insurer. <Amended by Act No. 4470, Dec. 31, 1991>