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
An appraiser accepts a classic car assignment but lacks experience with that make. Under the Competency Rule, what must happen before the report is completed?
Answer: The appraiser must disclose the lack of knowledge and take steps to complete the assignment competently
If competency is lacking, the appraiser must disclose it, take necessary steps such as research or association with a qualified expert, and describe these in the report.
In a typical auto insurance policy appraisal clause, if the two party-selected appraisers cannot agree on the loss amount, who resolves the dispute?
Answer: An umpire
Appraisal clauses provide that differences between the two appraisers are submitted to an umpire, and agreement by any two is binding.
The date as of which the appraiser's opinion of value applies is called the:
Answer: Effective date
The effective date establishes the context for the value opinion and may differ from the date of the report.
An appraiser values a vehicle as of the date of an accident that occurred eight months ago. This is a:
Answer: Retrospective appraisal
A retrospective appraisal has an effective date prior to the date of the report.
Which statement about the appraiser's signed certification in a USPAP report is correct?
Answer: It must state the appraiser has no present or prospective interest in the property, or disclose any such interest
The certification affirms impartiality, including no undisclosed interest in the subject property or bias toward the parties.
Under USPAP, who is responsible for determining the appropriate scope of work for an assignment?
Answer: The appraiser
The Scope of Work Rule places responsibility on the appraiser to determine and perform a scope of work that produces credible results.
An attorney asks an appraiser to share a vehicle appraisal performed for a different client. Absent client authorization or legal process, the appraiser should:
Answer: Refuse, because confidential assignment results may not be disclosed to unauthorized parties
The Confidentiality section of the Ethics Rule bars disclosing assignment results to anyone other than the client, persons the client authorizes, or as required by law.