CCA CCA Auto and Property Claims

Question 1

What does 'actual cash value' (ACV) mean when settling a property claim?

Accepted Answer

The replacement cost minus depreciation

Answer

Actual cash value is calculated as the replacement cost of damaged property minus depreciation for age, wear, and obsolescence.

Question 2

Under a personal auto policy, 'uninsured motorist coverage' protects the insured when:

Accepted Answer

A not-at-fault insured is injured by a driver who has no liability insurance

Answer

Uninsured motorist (UM) coverage pays for the insured's bodily injury or property damage caused by a driver who carries no liability insurance.

Question 3

What is 'betterment' in a property or auto claim?

Accepted Answer

A reduction in claim payment when a repair results in an improvement over pre-loss condition

Answer

Betterment deductions are applied when a repair or replacement leaves the insured in a better position than before the loss, such as replacing an old roof with a new one.

Question 4

A vehicle is declared a total loss when:

Accepted Answer

The cost of repairs exceeds the vehicle's actual cash value

Answer

A total loss is declared when repair costs equal or exceed the vehicle's ACV, making repair uneconomical.

Question 5

Under a homeowners policy, which peril is typically EXCLUDED from standard coverage?

Accepted Answer

Flood damage

Answer

Standard homeowners policies exclude flood damage; separate flood insurance (often through NFIP) is required for flood coverage.

(CCA) Certified Claims Adjuster Practice Test

(CCA) Certified Claims Adjuster Practice Test

CCA CCA Auto and Property Claims