Client Advisory Services Flashcards
7 cards from real CIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Client Advisory Services flashcards as text
Which element is MOST essential in a formal appraisal report delivered to a client for insurance purposes?
Answer: A clearly stated replacement cost new (RCN) with supporting cost methodology
Insurance appraisals must clearly state the replacement cost new using a documented cost methodology so underwriters and clients can rely on the figure for coverage decisions.
A CIA appraiser discovers a potential conflict of interest midway through an engagement. The CORRECT course of action is to:
Answer: Immediately disclose the conflict to the client and obtain written consent or withdraw from the engagement
Professional standards require prompt disclosure of conflicts to the client, who must then decide whether to consent to continuation or terminate the engagement.
How long should a CIA appraiser typically retain work files and supporting documentation for completed insurance appraisals?
Answer: At least five years or as required by applicable law and professional standards
Professional standards and potential legal exposure generally require retaining appraisal work files for a minimum of five years, though applicable law may require longer.
When communicating appraisal findings to an underwriter on behalf of a client, the appraiser should ensure the report:
Answer: Contains objective, supportable data and clearly distinguishes between assumptions and fact
Credible appraisals presented to underwriters must be objective, clearly supported, and distinguish assumptions from verified facts to maintain professional integrity.
A client requests that the appraiser modify a final report to reflect a higher value to secure more favorable financing terms. The appraiser should:
Answer: Refuse, as altering a report to misrepresent value violates professional ethics and may constitute fraud
Producing a misleading appraisal report violates professional standards and legal statutes; the appraiser must refuse any request that compromises the integrity of the valuation.
Client confidentiality in insurance appraisal practice requires that the appraiser:
Answer: Protect non-public client information and disclose it only with consent or legal compulsion
Appraisers are ethically and often legally required to protect client confidential information and may only disclose it with client consent or under legal obligation.
A scope of loss documentation prepared by an appraiser after a property damage event should PRIMARILY include:
Answer: Detailed itemization of damaged components, quantities, unit costs, and total replacement or repair values
Post-loss documentation must itemize every damaged element with quantities and costs to support the claim settlement process and ensure full indemnification.