MASS AUTOMOTIVE DAMAGE APPRAISER QUESTIONS AND CORRECT VERIFIED ANSWERS

MASS AUTOMOTIVE DAMAGE
APPRAISER QUESTIONS AND CORRECT
VERIFIED ANSWERS
PrincipleA2ofA2IndemnityA2-A2Ans--
RestorationA2toA2approximateA2previousA2financialA2condition,A2noA2moreA2noA2less.

PerilA2-A2Ans--TheA2actualA2causeA2ofA2aA2loss

LossA2-A2Ans--reductionA2inA2value/financialA2loss/
amountA2paidA2outA2inA2claimA2settlement

DirectA2LossA2-A2Ans--physicalA2harmA2toA2aA2tangibleA2property

indirectA2loss/consequentialA2LossA2-A2Ans--
anA2economicA2lossA2thatA2resultsA2fromA2aA2directA2loss

ProximateA2CauseA2-A2Ans--
whenA2thereA2isA2anA2unbrokenA2chainA2ofA2eventsA2betweenA2anA2occurrenceA2andA2aA2lo
ss,A2thenA2thatA2occurrenceA2isA2theA2proximateA2causeA2ofA2loss

OccurrenceA2-A2Ans--anA2event,A2incident,A2orA2conditionA2thatA2causesA2damage

OriginalA2OccurenceA2-A2Ans--
causesA2damageA2thatA2thenA2leadsA2toA2more,A2proximateA2ofA2allA2resultingA2losses

DamagesA2areA2coveredA2if:A2-A2Ans--
causedA2byA2coveredA2peril,A2orA2ifA2theirA2proximateA2causeA2wasA2aA2coveredA2peril

riskA2-A2Ans--potenialA2forA2loss,A2insuredA2item

hazardA2-A2Ans--anythingA2thatA2increasesA2exposure

perilA2-A2Ans--
exposureA2toA2injury,A2loss,A2orA2destruction;A2graveA2risk;A2jeopardy;A2danger

valuationA2-A2Ans--TheA2processA2ofA2estimatingA2whatA2anA2itemA2isA2worth
1.A2actualA2cashA2value/market(ACV)
2.A2replacementA2cost(RC)
3.A2functionalA2replacementA2cost
4.A2statedA2amount
5.A2valued'A2guaranteedA2value

, actualA2cashA2valueA2-A2Ans---ACV-
A2aA2valuationA2methodA2thatA2takesA2intoA2accountA2depreciation
-sameA2asA2marketA2andA2depreciatedA2value
-ACVA2offersA2lowerA2premiumsA2forA2lessA2coverage

AcvA2FormulaA2-A2Ans--acv=replacementA2cost-depreciation

replacementA2costA2-A2Ans--todaysA2price

depreciationA2-A2Ans--anA2itemsA2estimatedA2forA2lossA2valueA2dueA2toA2wearA2andA2tear/
age

ReplacementA2Cost(RC)A2-A2Ans--
basedA2onA2replacingA2anA2miteA2atA2currentA2marketA2pricesA2regardlessA2ofA2depreciatio
n

FunctionalA2ReplacementA2CostA2-A2Ans--
PaysA2toA2replaceA2anA2outdatedA2obsoleteA2itemA2withA2aA2functionallyA2equivalentA2item
A2notA2identical
-levelA2ofA2coverageA2fallsA2betweenA2RCA2andA2ACV

StatedA2AmountA2-A2Ans--
PropertyA2valueA2isA2statedA2byA2theA2insuredA2whenA2applyingA2forA2insurance
-
WhenA2lossA2occurs,A2policyA2paysA2upA2toA2theA2statedA2amountA2orA2ACV,A2whicheverA2i
sA2less

valuedA2policyA2-A2Ans--guaranteedA2value-
A2determinedA2priorA2toA2theA2issuanceA2ofA2policy
AvoidsA2theA2confusionA2ofA2assessingA2appreciationA2orA2depreciation

ACVA2ActualA2CashA2ValueA2-A2Ans--usuallyA2beneficialA2toA2theA2policyA2holder

ACVA2-A2Ans--generallyA2reflectsA2currentA2marketA2valueA2ofA2anA2item

policyA2limitsA2-A2Ans--
establishA2theA2maximumA2payoutA2ofA2anA2insuranceA2policy.A2inA2autoA2eachA2typeA2ofA2
coverageA2hasA2aA2limit

salvageA2-A2Ans--portionA2orA2valueA2propertyA2thatA2remainsA2afterA2loss

handlingA2salvageA2-A2Ans--1.A2insurerA2deductsA2salvageA2fromA2settlementA2amount
2.A2insurerA2takesA2ownershipA2ofA2damagedA2propertyA2afterA2payingA2fullA2valueA2ofA2da
magedA2prop.
3.A2insurersA2oftenA2takeA2ownershipA2ofA2vehiclesA2afterA2totalA2loss