CCA Claims Handling and Investigation 3

Question 1

Which type of adjuster is an independent contractor hired by insurers on a per-claim basis?

Accepted Answer

Independent adjuster

Answer

Independent adjusters are self-employed or work for independent adjusting firms and are engaged by insurers when extra capacity or specialized expertise is needed.

Question 2

A claimant hires a public adjuster after a storm loss. Whose interests does the public adjuster represent?

Accepted Answer

The claimant/policyholder's interests

Answer

Public adjusters are hired by and exclusively represent policyholders to help them document, file, and negotiate their insurance claims.

Question 3

What is the significance of a 'reservation of rights' letter sent by an insurer?

Accepted Answer

It informs the insured that the insurer is investigating while reserving the right to deny coverage

Answer

A reservation of rights letter allows the insurer to investigate and defend a claim without waiving coverage defenses that may apply.

Question 4

An adjuster discovers that the insured misrepresented a material fact on the application. What potential remedy does the insurer have?

Accepted Answer

Rescind the policy ab initio (from the beginning)

Answer

Material misrepresentation on an application may give the insurer grounds to void (rescind) the policy as if it never existed, subject to state law requirements.

Question 5

Which of the following BEST describes the 'actual cash value' (ACV) method of loss valuation?

Accepted Answer

Replacement cost new minus depreciation

Answer

ACV is generally calculated as the cost to replace the damaged property with new property of like kind and quality, less depreciation for age and condition.

(CCA) Certified Claims Adjuster Practice Test

(CCA) Certified Claims Adjuster Practice Test

CCA Claims Handling and Investigation 3