CVA Total Loss Evaluation & Insurance Claims 2

Question 1

What is a 'rebuilt title' and how does it affect a vehicle's appraisal value?

Accepted Answer

A title issued after a salvage vehicle is repaired and passes state inspection; typically reduces market value 20–40%

Answer

A rebuilt title is issued to a previously salvaged vehicle that has been repaired and re-inspected, but it carries a permanent stigma reducing market value 20–40%.

Question 2

Which database do CVA appraisers most commonly use to check total loss and title brand history?

Accepted Answer

CARFAX or AutoCheck (Experian)

Answer

CARFAX and AutoCheck compile title brand history, odometer records, and reported accident data from state DMVs and insurance companies.

Question 3

An appraiser is asked to value a vehicle for a diminished value claim. What does 'inherent diminished value' mean?

Accepted Answer

The permanent reduction in market value a repaired vehicle suffers solely because of its accident history

Answer

Inherent diminished value is the residual loss of market value a vehicle retains even after perfect repair, due solely to its disclosed accident history.

Question 4

In a first-party total loss claim, which party does the CVA appraiser typically represent?

Accepted Answer

The policyholder's own insurance company

Answer

In first-party claims, the CVA works for the policyholder's insurer to determine the ACV and resolve the claim under the insured's own policy.

Question 5

What is the primary reason CVA appraisers must document comparable sales when establishing ACV for a total loss?

Accepted Answer

To provide market-based evidence supporting the valuation against potential disputes

Answer

Comparable sales documentation provides objective, market-based evidence for the ACV determination, which is essential if the settlement is disputed.

CVA - Certified Vehicle Appraiser Practice Test

CVA - Certified Vehicle Appraiser Practice Test

CVA Total Loss Evaluation & Insurance Claims 2