CCP Property Claims Assessment 1

Question 1

What is the difference between actual cash value (ACV) and replacement cost value (RCV)?

Accepted Answer

ACV deducts depreciation from replacement cost; RCV pays to replace without depreciation deduction

Answer

Actual cash value equals replacement cost minus depreciation, reflecting the item's current worth. Replacement cost value pays the full cost to replace the item with a comparable new one without depreciation.

Question 2

What is a proof of loss document?

Accepted Answer

A sworn statement by the insured detailing the facts, circumstances, and amount of the claimed loss

Answer

A proof of loss is a formal, sworn document submitted by the insured to the insurance company detailing the circumstances, cause, and financial amount of the claimed loss.

Question 3

What is the purpose of a scene investigation in property claims?

Accepted Answer

To document the damage, determine the cause of loss, and identify any coverage issues

Answer

A scene investigation documents the extent of damage, determines the cause and origin of the loss, preserves evidence, and identifies any policy coverage issues or potential fraud indicators.

Question 4

What is a policyholder's duty to mitigate damages after a loss?

Accepted Answer

The obligation to take reasonable steps to prevent further damage to the property

Answer

Policyholders have a legal duty to take reasonable steps to prevent additional damage after a loss (such as tarping a damaged roof), though the insurer typically reimburses these mitigation costs.

Question 5

What role does an independent adjuster play in property claims?

Accepted Answer

An independent contractor hired by the insurer to investigate and evaluate claims

Answer

Independent adjusters are licensed professionals contracted by insurance companies to investigate, document, and evaluate property claims, often deployed during catastrophe events.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Property Claims Assessment 1