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
Under a standard commercial property policy, 'ordinance or law' coverage addresses which type of additional cost?
Answer: Costs to comply with building codes when repairing or replacing damaged property
Ordinance or law coverage pays the additional costs to bring a damaged structure into compliance with current building codes during repair or reconstruction.
An insured fails to report a property loss within the timeframe specified in the policy. Under what circumstances can the insurer use this to deny the claim?
Answer: Only if the insurer can demonstrate it was actually prejudiced by the late notice
In most jurisdictions, an insurer can deny a claim for late notice only if it can show actual prejudice resulting from the delay in reporting.
What is 'debris removal' coverage in a property insurance policy?
Answer: Coverage for the cost to remove debris of covered property after a covered loss
Debris removal coverage pays the expense of removing debris of covered property that results from a covered loss, often subject to a sublimit or percentage of the loss.
A property adjuster is handling a total loss claim. The insured wants to retain the salvage (burned vehicle chassis). How does retaining salvage affect the settlement?
Answer: The salvage value is deducted from the settlement if the insured retains it
If the insured elects to retain salvage, the salvage value is deducted from the total loss settlement to prevent the insured from profiting beyond actual loss.
What is the role of an independent adjuster (IA) in a property claim?
Answer: An IA is hired by the insurer on a fee basis to adjust claims on the insurer's behalf
Independent adjusters are contracted by insurers to handle claims on their behalf, particularly during catastrophe events or when staff adjusters are unavailable.
Which of the following best describes 'extra expense' coverage in a commercial property policy?
Answer: Coverage for expenses incurred to continue operations at an alternate location after a covered loss
Extra expense coverage pays costs above normal operating expenses that an insured incurs to continue or resume business operations following a covered property loss.
Under the appraisal process outlined in most property insurance policies, who selects the umpire when the two appraisers cannot agree?
Answer: The two appraisers jointly select a competent and impartial umpire
Standard policy appraisal clauses require the two party-appointed appraisers to jointly select an impartial umpire; if they cannot agree, either party may petition the court.