CIA CIA Loss Estimation & Damage Assessment

Question 1

Which method of loss estimation involves comparing the damaged property to recent sales of similar undamaged properties in the same market area?

Accepted Answer

Sales comparison approach

Answer

Replacement cost approach

Answer

Income capitalization approach

Answer

Depreciated cost approach

Question 2

In insurance damage assessment, what does ACV stand for?

Accepted Answer

Actual Cash Value

Answer

Adjusted Claims Value

Answer

Assessed Coverage Value

Answer

Aggregate Claim Valuation

Question 3

A CIA appraiser is estimating fire damage to a commercial building. The primary purpose of a scope of loss document is to:

Accepted Answer

Itemize all damaged components and quantities for repair or replacement

Answer

Settle the claim immediately

Answer

Determine the insured's premium rate

Answer

Establish the policy deductible amount

Question 4

Which type of depreciation reflects a loss in property value due to factors outside the property itself, such as neighborhood decline?

Accepted Answer

External obsolescence

Answer

Physical depreciation

Answer

Functional obsolescence

Answer

Deferred maintenance

Question 5

When assessing water damage, a CIA appraiser discovers hidden mold behind walls. This is best classified as:

Accepted Answer

Concealed or secondary damage requiring further investigation

Answer

Cosmetic damage only

Answer

Pre-existing condition unrelated to the loss

Answer

Structural total loss

Question 6

The term 'betterment' in insurance damage assessment refers to:

Accepted Answer

A reduction in settlement when repairs improve the property beyond its pre-loss condition

Answer

Upgrading a property beyond its pre-loss condition at the insurer's expense

Answer

The increase in property value after repairs

Answer

Additional coverage endorsement for improvements