CAADE CAADE Documentation and Report Writing Questions and Answers 3

Question 1

What is a 'diminished value' report and when is it relevant in a CAADE appraisal context?

Accepted Answer

A report documenting the reduction in a vehicle's market value following a collision and repair, relevant to third-party liability claims

Answer

A report estimating salvage yard value only

Answer

A report used to determine fuel efficiency loss

Answer

A report filed with the DMV after every accident

Question 2

When documenting parts prices in an appraisal report, why should the appraiser use the price in effect at the time of the estimate rather than a future quote?

Accepted Answer

Because the estimate must reflect current market pricing to accurately represent the cost of repair at the time of loss

Answer

Because parts prices never change

Answer

Because future quotes are always lower

Answer

Because insurance policies require estimates within 24 hours

Question 3

What is the role of a 'field note' or 'estimator note' within a damage appraisal report?

Accepted Answer

To provide explanatory comments that clarify specific repair decisions, part choices, or unusual damage circumstances in the estimate

Answer

To list the appraiser's personal opinions about the driver

Answer

To replace photographs in the report

Answer

To document the vehicle owner's insurance history

Question 4

Under what circumstance must a CAADE appraiser include a 'not included' or 'excluded' notation in the damage report?

Accepted Answer

When damage is observed but cannot be fully assessed without disassembly, or when the damage falls outside the scope of the current claim

Answer

When the vehicle color is white

Answer

When the repair will take more than two days

Answer

When the estimate exceeds $5,000

Question 5

Why must an appraiser document the vehicle's mileage at the time of inspection in the formal damage report?

Accepted Answer

To establish the vehicle's condition and support betterment calculations, total loss valuation, and historical record

Answer

To calculate the vehicle's fuel efficiency

Answer

To determine state emissions compliance

Answer

To set the scheduling priority for repairs

Question 6

When finalizing a CAADE appraisal report for submission, which professional standard requires the appraiser to sign and certify the accuracy of the report?

Accepted Answer

The appraiser must sign and certify that the report reflects an honest, independent assessment based on physical inspection and professional judgment

Answer

The vehicle owner must sign; the appraiser does not sign

Answer

Only the insurance adjuster signs the report

Answer

Certification is optional and only required for claims over $10,000