CCA Auto and Property Claims Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCA Auto and Property Claims flashcards as text
What does 'actual cash value' (ACV) mean when settling a property claim?
Answer: The replacement cost minus depreciation
Actual cash value is calculated as the replacement cost of damaged property minus depreciation for age, wear, and obsolescence.
Under a personal auto policy, 'uninsured motorist coverage' protects the insured when:
Answer: A not-at-fault insured is injured by a driver who has no liability insurance
Uninsured motorist (UM) coverage pays for the insured's bodily injury or property damage caused by a driver who carries no liability insurance.
What is 'betterment' in a property or auto claim?
Answer: A reduction in claim payment when a repair results in an improvement over pre-loss condition
Betterment deductions are applied when a repair or replacement leaves the insured in a better position than before the loss, such as replacing an old roof with a new one.
A vehicle is declared a total loss when:
Answer: The cost of repairs exceeds the vehicle's actual cash value
A total loss is declared when repair costs equal or exceed the vehicle's ACV, making repair uneconomical.
Under a homeowners policy, which peril is typically EXCLUDED from standard coverage?
Answer: Flood damage
Standard homeowners policies exclude flood damage; separate flood insurance (often through NFIP) is required for flood coverage.
What is a 'deductible' in an insurance policy?
Answer: The amount the insured must pay out of pocket before the insurer pays
A deductible is the portion of a covered loss the insured is responsible for before the insurance company pays the remainder.