CFA Insurance Appraisal & Estate Valuation Flashcards
6 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CFA Insurance Appraisal & Estate Valuation flashcards as text
What type of value does an insurance appraisal for a collectible firearm typically establish?
Answer: Replacement value
Insurance appraisals establish replacement value, which represents the cost to replace the firearm with one of like kind and quality.
When appraising a firearm for insurance purposes, which value standard typically results in the HIGHEST dollar amount?
Answer: Replacement value
Replacement value is typically the highest standard as it reflects the retail cost to replace the item with a comparable one.
A 'scheduled personal property' endorsement on a homeowner's policy typically requires what from a firearms appraiser?
Answer: A written appraisal with itemized values
Scheduled endorsements require a written appraisal with specific itemized values to establish individual coverage limits for each firearm.
How often should insurance appraisals for valuable collectible firearms generally be updated?
Answer: Every 3–5 years
Insurance appraisals for collectible firearms should be updated every 3–5 years to reflect current market conditions and prevent underinsurance.
What is 'agreed value' coverage in the context of firearm insurance?
Answer: A pre-set payout amount agreed upon before a loss occurs
Agreed value coverage establishes a fixed payout amount negotiated by the insurer and insured before any loss, eliminating depreciation disputes at claim time.
Which document best supports an insurance claim for a high-value antique firearm?
Answer: A certified written appraisal from a qualified firearms appraiser
A certified written appraisal from a qualified firearms appraiser provides the strongest evidentiary support for an insurance claim on a high-value antique firearm.