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

Replacement cost value pays what it actually costs to replace the damaged item with a new equivalent, without subtracting depreciation.

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

Diminished value is the difference between a vehicle's pre-accident market value and its post-repair market value, since a repaired vehicle often sells for less.

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

A proof of loss is a sworn statement by the insured detailing the circumstances of the loss and the amount claimed, required by most policies before payment.

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

A subrogation waiver endorsement removes the insurer's right to recover from a named party, often required when tenants or contractors agree to waive claims against each other.

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

A contents schedule documents personal property items with their descriptions, ages, original costs, and estimated replacement values to support the claim settlement.

(CCA) Certified Claims Adjuster Practice Test

(CCA) Certified Claims Adjuster Practice Test

CCA CCA Auto and Property Claims 2