CCA CCA Auto and Property Claims 2

Question 1

What is 'replacement cost value' (RCV) coverage?

Accepted Answer

Coverage that pays the cost to replace damaged property with new property of like kind and quality, without deducting for depreciation

Answer

Coverage that pays only the depreciated value of damaged property

Answer

Coverage limited to the amount the insured paid for the property originally

Answer

Coverage that pays only the salvage value of destroyed items

Question 2

In an auto claim, 'diminished value' refers to:

Accepted Answer

The reduction in a vehicle's market value after being repaired following an accident

Answer

Depreciation applied to the total loss settlement

Answer

The deductible amount subtracted from the claim payment

Answer

The cost difference between OEM and aftermarket parts

Question 3

An insured's home suffers a covered fire loss. The adjuster must complete a proof of loss. What is the purpose of this document?

Accepted Answer

To formally document the insured's claim and the amount of the loss for the insurer's records

Answer

To cancel the policy after a major loss

Answer

To transfer ownership of the damaged property to the insurer

Answer

To establish the insured's premium for the next policy term

Question 4

What does 'subrogation waiver endorsement' do in a property policy?

Accepted Answer

It prevents the insurer from pursuing recovery against a specified third party

Answer

It eliminates the deductible for subrogated claims

Answer

It increases the policy limits for subrogated losses

Answer

It transfers subrogation rights to the insured

Question 5

A homeowner files a claim for personal property destroyed in a fire. The insurer uses a 'contents schedule' to evaluate the claim. What does this typically include?

Accepted Answer

An itemized list of damaged or destroyed belongings with descriptions, ages, and values

Answer

Only items specifically listed on the policy at inception

Answer

The structural inventory of the home's building components

Answer

A list of all prior claims filed on the policy

Question 6

Which type of auto coverage pays for the insured's own vehicle damage regardless of fault?

Accepted Answer

Collision coverage

Answer

Bodily injury liability

Answer

Property damage liability

Answer

Medical payments coverage