Property Claims Assessment Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property Claims Assessment flashcards as text
A homeowner discovers mold behind drywall after a covered water loss. The adjuster determines the mold existed prior to the loss. How should the adjuster handle the mold remediation costs?
Answer: Apportion costs between pre-existing mold and mold caused by the covered loss
When mold is partially pre-existing and partially caused by a covered loss, costs must be apportioned between covered and non-covered portions.
Under the valued policy law applicable in some states, what happens when a total loss occurs on an insured dwelling?
Answer: The insurer pays the face amount of the policy regardless of actual value
Valued policy laws require the insurer to pay the full face amount of the policy when a total loss occurs, eliminating disputes over actual cash value.
A claims professional is assessing roof damage after a hailstorm. The roof is 15 years old with a 20-year expected lifespan. The replacement cost is $10,000. What is the approximate ACV using straight-line depreciation?
Answer: $2,500
With 15 of 20 years elapsed (75% depreciated), the ACV is 25% of $10,000 = $2,500 using straight-line depreciation.
Which doctrine holds that when a loss is caused by two concurrent perils — one covered and one excluded — the insurer is liable for the entire loss?
Answer: Concurrent causation doctrine
The concurrent causation doctrine holds that if a covered peril contributes to a loss alongside an excluded peril, the insurer must cover the entire loss.
A commercial building suffers fire damage. The insured has a $500,000 policy with an 80% coinsurance clause and the building is valued at $800,000. If the loss is $200,000, how much will the insurer pay?
Answer: $156,250
Required insurance is 80% × $800,000 = $640,000; insured carried $500,000; penalty ratio = 500/640 × $200,000 = $156,250.
What is the primary purpose of a Proof of Loss document in a property claim?
Answer: To formally document the insured's claim and provide sworn statement of the loss details
A Proof of Loss is a sworn statement by the insured that formally details the nature, extent, and amount of the claimed loss.
When evaluating a business interruption claim, which of the following is NOT typically considered in calculating loss of business income?
Answer: The insured's personal salary if they own the business
Business interruption coverage addresses net income and continuing operating expenses; the owner's personal salary drawn from the business is generally excluded.