XYZ Shipping is sending a cargo ship across the Pacific and wants an Ocean Marine policy that will pay the full amount of the policy in the event of a total loss. XYZ Shipping needs their policy written on a/an ______ basis.

Freight value refers to the cost associated with transporting goods and is not directly related to the insurance coverage amount in the event of a total loss. A policy based on freight value would not ensure full compensation for the loss of the cargo itself, which is the primary concern for XYZ Shipping.

An actual cash value policy pays out the replacement cost of the property minus depreciation at the time of loss. This approach does not guarantee the full policy amount in the event of total loss, which can leave XYZ Shipping underinsured if the depreciated value of the cargo is less than the amount originally paid for it.

An unvalued policy does not specify a set amount for coverage and can lead to disputes regarding the payout in the event of a total loss. This type of policy relies on negotiations or assessments after a loss occurs, which can be uncertain and unfavorable for XYZ Shipping.