CAADE Supplement and Reinspection Procedures 2

Question 1

What is a 'concurrence' in supplement procedures?

Accepted Answer

An agreement between the repair facility and the insurance appraiser on the supplemental items and amounts

Answer

Concurrence is the mutual agreement reached between the repair facility and the insurance appraiser on the scope and cost of supplemental repairs, allowing work to proceed without dispute.

Question 2

When a supplement is submitted electronically via an estimating platform, which of the following is typically required to finalize the process?

Accepted Answer

Appraiser review and digital authorization within the system

Answer

Modern estimating platforms (e.g., CCC, Mitchell, Audatex) allow appraisers to review, adjust, and digitally authorize supplements without requiring paper signatures or regulatory approval.

Question 3

A repair shop discovers that a vehicle's frame rail is more severely buckled than originally noted. This finding should result in:

Accepted Answer

A supplement that includes additional straightening, sectioning, or replacement labor and materials

Answer

Greater-than-anticipated structural damage warrants a supplement to account for the additional labor operations, equipment use, and materials required to restore the vehicle to pre-loss condition.

Question 4

Which of the following best describes 'parts price adjustments' in a supplement?

Accepted Answer

Correcting part prices that changed between the original estimate and the time of ordering

Answer

Parts prices can fluctuate between the initial estimate and actual ordering; a supplement may adjust prices to reflect current market pricing at the time the repair is performed.

Question 5

In a supplement, what does 'related damage' mean?

Accepted Answer

Damage that is causally connected to and resulted from the covered loss

Answer

Related damage is damage that is causally linked to the current covered loss event; only related damage is eligible for coverage and inclusion in the supplement.

(CAADE) Certified Automotive Appraisal and Damage Estimator Practice Test

(CAADE) Certified Automotive Appraisal and Damage Estimator Practice Test

CAADE Supplement and Reinspection Procedures 2