CCP Property Claims Assessment 3

Question 1

An insured submits a property claim for stolen jewelry worth $8,000. The homeowners policy has a $1,500 sublimit for jewelry theft. The insured has a separate scheduled personal property floater with $7,000 jewelry coverage. What is the total recovery?

Accepted Answer

$8,000 total using both policies with no duplication

Answer

The floater covers $7,000 and the homeowners policy contributes the remaining $1,000 under its sublimit, totaling $8,000 with no duplication of recovery.

Question 2

What distinguishes 'replacement cost' coverage from 'actual cash value' coverage in property claims?

Accepted Answer

Replacement cost pays to repair/replace without depreciation; ACV deducts depreciation

Answer

Replacement cost coverage pays the full cost to repair or replace damaged property without deducting depreciation, while ACV subtracts depreciation from that amount.

Question 3

A property adjuster discovers that the insured's contractor estimate includes items that are not damaged and were pre-existing conditions. What is the appropriate action?

Accepted Answer

Adjust the estimate to include only items directly related to the covered loss

Answer

The adjuster must ensure the claim payment is limited to damages directly caused by the covered loss, excluding pre-existing or unrelated items.

Question 4

Under a standard homeowners policy, which of the following losses would most likely be covered under Coverage A (Dwelling)?

Accepted Answer

Interior walls damaged by a burst frozen pipe

Answer

Coverage A covers the dwelling structure including permanently attached fixtures, so interior wall damage from a burst pipe is covered under the dwelling coverage.

Question 5

What is 'functional replacement cost' as used in some property insurance policies?

Accepted Answer

The cost to replace with a less expensive but functionally equivalent material

Answer

Functional replacement cost allows the insurer to replace damaged property with materials that serve the same purpose but may be less expensive than the original.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Property Claims Assessment 3