CFA CFA Insurance Appraisal & Estate Valuation 1

Question 1

What type of value does an insurance appraisal for a collectible firearm typically establish?

Accepted Answer

Replacement value

Answer

Fair market value

Answer

Liquidation value

Answer

Wholesale value

Question 2

When appraising a firearm for insurance purposes, which value standard typically results in the HIGHEST dollar amount?

Accepted Answer

Replacement value

Answer

Liquidation value

Answer

Fair market value

Answer

Wholesale value

Question 3

A 'scheduled personal property' endorsement on a homeowner's policy typically requires what from a firearms appraiser?

Accepted Answer

A written appraisal with itemized values

Answer

A verbal estimate only

Answer

A dealer's invoice

Answer

An ATF Form 4473

Question 4

How often should insurance appraisals for valuable collectible firearms generally be updated?

Accepted Answer

Every 3–5 years

Answer

Every 10 years

Answer

Only when sold

Answer

Only after modifications

Question 5

What is 'agreed value' coverage in the context of firearm insurance?

Accepted Answer

A pre-set payout amount agreed upon before a loss occurs

Answer

The dealer's asking price

Answer

The Blue Book value

Answer

The auction hammer price

Question 6

Which document best supports an insurance claim for a high-value antique firearm?

Accepted Answer

A certified written appraisal from a qualified firearms appraiser

Answer

A sales receipt from a gun show

Answer

A personal photo from a collection album

Answer

A manufacturer's warranty card