CAA Insurance Policies and Regulations 2

Question 1

Under a standard personal auto policy appraisal clause, if the two appraisers cannot agree on the amount of loss, what happens next?

Accepted Answer

The differences are submitted to an umpire

Answer

The appraisal clause has each party pick an appraiser, and any disagreements go to a neutral umpire; a decision agreed by any two of the three is binding.

Question 2

Who typically pays for the umpire in an auto policy appraisal process?

Accepted Answer

The insured and the insurer share the cost equally

Answer

Each party pays its own appraiser and the umpire's cost is usually split equally.

Question 3

What does the appraisal clause in an auto policy generally resolve?

Accepted Answer

Disputes over the amount of loss

Answer

Appraisal settles disagreements about the value or amount of the loss, not coverage or liability questions.

Question 4

Which first-party coverage pays for damage to the insured's vehicle from hail, theft, or hitting a deer?

Accepted Answer

Comprehensive (other than collision)

Answer

Comprehensive (other than collision) covers non-collision losses such as hail, theft, fire, vandalism, and animal strikes.

Question 5

In most states, contact with an animal such as a deer is classified under which coverage?

Accepted Answer

Comprehensive

Answer

Standard personal auto policies list contact with a bird or animal as a comprehensive loss.

CAA - Certified Automotive Appraiser Practice Test

CAA - Certified Automotive Appraiser Practice Test

CAA Insurance Policies and Regulations 2