Damage Evaluation and Settlement Procedures 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 Damage Evaluation and Settlement Procedures flashcards as text
What is the primary goal of a damage evaluation?
Answer: To determine accurate claim payment
The purpose of damage evaluation is to assess the extent of loss and determine the amount the insurer owes under the policy terms.
Which method is commonly used for evaluating property damage?
Answer: Repair estimate
An itemized repair estimate breaks down the cost of labor and materials required to restore the damaged property.
What is depreciation in claims settlement?
Answer: Loss in value from age or use
Depreciation is the loss in value due to age, wear, or obsolescence and is deducted from the replacement cost to determine actual cash value.
Which factor most affects the final settlement amount?
Answer: Policy limits
Policy limits define the maximum amount an insurer will pay for a covered loss and cap the settlement amount.
What should an adjuster do if there is a dispute over repair costs?
Answer: Request an independent estimate
If there's a dispute, the adjuster should request an independent appraisal or contractor estimate to support fair resolution.
When is a claim considered settled?
Answer: When both parties agree on compensation
A claim is settled when both parties agree on the amount, and the claimant accepts the payment, concluding the insurer’s obligation.