CAA Total Loss and Diminished Value 3

Question 1

In the Georgia '17c' diminished value formula, what is the base loss of value?

Accepted Answer

10% of the vehicle's pre-loss retail value

Answer

The 17c formula caps the starting base loss at 10% of the pre-loss value.

Question 2

In the 17c formula, what mileage multiplier applies to a vehicle with over 100,000 miles?

Accepted Answer

0.0

Answer

Vehicles above 100,000 miles receive a zero multiplier, eliminating DV under 17c.

Question 3

Which court case led to the creation of the 17c diminished value formula?

Accepted Answer

Mabry v. State Farm

Answer

Mabry v. State Farm (Georgia, 2001) required insurers to assess DV on first-party claims.

Question 4

A diminished value claim is most commonly pursued against which party?

Accepted Answer

The at-fault driver's liability insurer

Answer

Third-party DV claims against the at-fault liability carrier are recognized in most states.

Question 5

Repair-related diminished value arises primarily from which factor?

Accepted Answer

Substandard or incomplete repairs such as poor paint match or improper parts

Answer

Repair-related DV comes from defects in the repair work itself.

CAA - Certified Automotive Appraiser Practice Test