CAP Claims Processing & Investigation 2

Question 1

What is the primary purpose of a recorded statement taken from a claimant during the investigation phase?

Accepted Answer

To lock the claimant into a version of events early in the process

Answer

Recorded statements capture the claimant's account of the loss while details are fresh and establish a baseline that can be compared against other evidence.

Question 2

Which of the following documents serves as the insured's formal notice to the insurer detailing the scope and value of a covered loss?

Accepted Answer

Proof of loss

Answer

A proof of loss is the insured's sworn statement describing the circumstances, nature, and dollar amount of the claimed loss.

Question 3

When an adjuster identifies a claim that may fall outside policy coverage, the appropriate immediate action is to:

Accepted Answer

Issue a reservation of rights letter while continuing the investigation

Answer

A reservation of rights letter protects the insurer's right to deny coverage while allowing the investigation to continue without waiving coverage defenses.

Question 4

In property claims, 'actual cash value' (ACV) is most commonly calculated as:

Accepted Answer

Replacement cost minus depreciation

Answer

ACV equals the cost to replace the damaged property with a like kind and quality item, reduced by accumulated depreciation.

Question 5

An independent adjuster (IA) differs from a staff adjuster primarily because the IA:

Accepted Answer

Is contracted per-claim rather than employed by the insurer

Answer

Independent adjusters are third-party contractors hired on a fee-per-claim basis, giving insurers flexible surge capacity without adding permanent staff.

(CAP) Certified Philanthropic Advisor Practice Test

(CAP) Certified Philanthropic Advisor Practice Test

CAP Claims Processing & Investigation 2