CIA CIA Loss Estimation & Damage Assessment 2

Question 1

In a total loss determination for personal property, the threshold is typically reached when:

Accepted Answer

Repair costs equal or exceed the actual cash value of the item

Answer

A total loss is declared when the cost to repair the item equals or exceeds its actual cash value, making replacement more economical than repair.

Question 2

Which document is used by CIA appraisers to formally invoke the appraisal process under a policy when there is a dispute about a loss amount?

Accepted Answer

Demand for appraisal

Answer

A demand for appraisal is the formal notice served by either party to invoke the policy's appraisal clause when there is a dispute over the amount of loss.

Question 3

Straight-line depreciation applied to a roof with a 20-year life expectancy that is 10 years old would result in depreciation of:

Accepted Answer

50%

Answer

Straight-line depreciation divides the age (10 years) by the useful life (20 years), yielding 50% depreciation.

Question 4

A CIA appraiser uses Xactimate software primarily to:

Accepted Answer

Generate line-item repair cost estimates based on local pricing data

Answer

Xactimate is industry-standard estimating software used by CIA appraisers to generate detailed, line-item repair cost estimates using localized labor and material pricing.

Question 5

When a CIA appraiser documents 'like, kind, and quality' in a replacement estimate, this means:

Accepted Answer

The replacement must match the pre-loss item in type, material, and quality

Answer

'Like, kind, and quality' requires that replacement items match the pre-loss property in type, material, quality, and function, not necessarily new or upgraded.

(CIA) Certified Insurance Appraiser Practice Test

(CIA) Certified Insurance Appraiser Practice Test

CIA CIA Loss Estimation & Damage Assessment 2