CCP Property Claims Assessment 2

Question 1

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?

Accepted Answer

Apportion costs between pre-existing mold and mold caused by the covered loss

Answer

When mold is partially pre-existing and partially caused by a covered loss, costs must be apportioned between covered and non-covered portions.

Question 2

Under the valued policy law applicable in some states, what happens when a total loss occurs on an insured dwelling?

Accepted Answer

The insurer pays the face amount of the policy regardless of actual value

Answer

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.

Question 3

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?

Accepted Answer

$2,500

Answer

With 15 of 20 years elapsed (75% depreciated), the ACV is 25% of $10,000 = $2,500 using straight-line depreciation.

Question 4

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?

Accepted Answer

Concurrent causation doctrine

Answer

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.

Question 5

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?

Accepted Answer

$156,250

Answer

Required insurance is 80% × $800,000 = $640,000; insured carried $500,000; penalty ratio = 500/640 × $200,000 = $156,250.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Property Claims Assessment 2