Total Loss Evaluation & Insurance Claims Flashcards
6 cards from real CVA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Total Loss Evaluation & Insurance Claims flashcards as text
What is 'gap coverage' in the context of a total loss vehicle claim?
Answer: Coverage that pays the difference between ACV and the outstanding loan balance
Gap coverage pays the difference between the vehicle's ACV (what the insurer pays) and the outstanding loan or lease balance if it exceeds ACV.
When total loss valuations include 'prior damage' deductions, what must the CVA document?
Answer: Pre-existing damage unrelated to the current claim, supported by evidence such as photos or prior repair records
Prior damage deductions must be documented with evidence because the insurer only owes for the current loss, not pre-existing conditions.
An insurance company sends an 'Assignment of Benefits' to a CVA appraiser. What does this document authorize?
Answer: The transfer of the policyholder's insurance claim rights to the appraiser
An Assignment of Benefits transfers the policyholder's right to insurance proceeds to a third party, such as a repair shop or appraiser.
What federal law governs odometer disclosure requirements during vehicle title transfers, including total loss settlements?
Answer: Federal Odometer Act (Motor Vehicle Information and Cost Savings Act)
The Federal Odometer Act requires accurate odometer disclosure at time of transfer, including total loss title transfers, to prevent odometer fraud.
A CVA appraiser is valuing a vehicle with a branded title from another state. Which principle applies?
Answer: Apply full market deductions for the title brand regardless of which state issued it
Title brands follow the vehicle regardless of state; a CVA must apply appropriate value deductions for any valid brand, whether domestic or out-of-state.
What is 'title washing' and why is it a concern for CVA appraisers?
Answer: The illegal practice of transferring a branded title through multiple states to remove the brand
Title washing is an illegal scheme where a salvage or branded title is transferred through states with weaker brand laws to obscure the vehicle's damaged history.