CA CA Loss Assessment & Damage Valuation 2

Question 1

Which type of loss involves damage to a third party's property caused by the insured, triggering the liability portion of a policy?

Accepted Answer

Third-party loss

Answer

First-party loss

Answer

Subrogated loss

Answer

Excess loss

Question 2

In California property claims, 'betterment' refers to:

Accepted Answer

A reduction in settlement when repairs improve the property beyond its pre-loss condition

Answer

A bonus payment for quick settlement

Answer

An increase in coverage limits after a loss

Answer

A penalty charged to contractors for delays

Question 3

A California adjuster conducting a scope of loss inspection should document which of the following?

Accepted Answer

All damaged areas with measurements, photos, and written notes

Answer

Only interior damage visible to the naked eye

Answer

Only items the insured specifically mentions

Answer

Damage to neighboring properties only

Question 4

What is the purpose of a 'reservation of rights' letter in a California claim?

Accepted Answer

To inform the insured the claim is being investigated while coverage may be in question

Answer

To notify the claimant of a settlement offer

Answer

To extend the policy period during litigation

Answer

To request additional premiums from the insured

Question 5

Which valuation approach is most appropriate for a unique commercial property with no comparable sales data?

Accepted Answer

Cost approach

Answer

Sales comparison approach

Answer

Income capitalization approach

Answer

Depreciated book value approach

Question 6

Under California Insurance Code, how many days does an insurer generally have to accept or deny a claim after receiving proof of loss?

Accepted Answer

40 days

Answer

15 days

Answer

30 days

Answer

60 days