Appraisal Standards and Ethics Flashcards
7 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Appraisal Standards and Ethics flashcards as text
Under USPAP, how long must an appraiser retain the workfile for a vehicle appraisal not involved in litigation?
Answer: At least 5 years after preparation
The Record Keeping Rule requires retaining a workfile for at least five years after preparation, or two years after final disposition of any judicial proceeding in which testimony was given, whichever is later.
Which USPAP standards specifically govern the development and reporting of personal property appraisals such as motor vehicles?
Answer: Standards 7 and 8
Standards 7 and 8 address personal property appraisal development and reporting, which includes vehicles.
An insurer offers to pay an appraiser a bonus if the appraised value of a total-loss vehicle comes in below a target amount. What should the appraiser do?
Answer: Decline, because compensation contingent on a predetermined result is prohibited
The Ethics Rule prohibits accepting compensation contingent on reporting a predetermined result or a direction in value that favors the client.
Within what period must an appraiser disclose prior services regarding the same vehicle to a new client?
Answer: Three years
USPAP requires disclosure of any services performed regarding the subject property within the three years prior to accepting the assignment.
An appraiser is asked to value a vehicle assuming repairs that have not yet been made are completed. This assumption is best classified as:
Answer: A hypothetical condition
A hypothetical condition is contrary to what is known to exist on the effective date but is assumed for the purpose of analysis.
Which USPAP rule allows an appraiser to disregard a part of USPAP when a law or regulation in a jurisdiction precludes compliance?
Answer: Jurisdictional Exception Rule
The Jurisdictional Exception Rule applies when law or regulation precludes compliance with part of USPAP, and only that part is voided.
Who is the 'client' in a USPAP-compliant vehicle appraisal assignment?
Answer: The party or parties who engage the appraiser in the assignment
USPAP defines the client as the party or parties who engage, by employment or contract, the appraiser in a specific assignment.