CCA Damage Evaluation and Settlement Procedures

Question 1

What is the primary goal of a damage evaluation?

Accepted Answer

To determine accurate claim payment

Answer

The purpose of damage evaluation is to assess the extent of loss and determine the amount the insurer owes under the policy terms.

Question 2

Which method is commonly used for evaluating property damage?

Accepted Answer

Repair estimate

Answer

An itemized repair estimate breaks down the cost of labor and materials required to restore the damaged property.

Question 3

What is depreciation in claims settlement?

Accepted Answer

Loss in value from age or use

Answer

Depreciation is the loss in value due to age, wear, or obsolescence and is deducted from the replacement cost to determine actual cash value.

Question 4

Which factor most affects the final settlement amount?

Accepted Answer

Policy limits

Answer

Policy limits define the maximum amount an insurer will pay for a covered loss and cap the settlement amount.

Question 5

What should an adjuster do if there is a dispute over repair costs?

Accepted Answer

Request an independent estimate

Answer

If there's a dispute, the adjuster should request an independent appraisal or contractor estimate to support fair resolution.

(CCA) Certified Claims Adjuster Practice Test