Mass Automotive Damage Appraiser
Principle of Indemnity - ✔✔ correct answer Restoration to approximate previous financial condition,
no more no less.
Peril - ✔✔ correct answer The actual cause of a loss
Loss - ✔✔ correct answer reduction in value/financial loss/amount paid out in claim settlement
Direct Loss - ✔✔ correct answer physical harm to a tangible property
indirect loss/consequential Loss - ✔✔ correct answer an economic loss that results from a direct loss
Proximate Cause - ✔✔ correct answer when there is an unbroken chain of events between an
occurrence and a loss, then that occurrence is the proximate cause of loss
Occurrence - ✔✔ correct answer an event, incident, or condition that causes damage
Original Occurence - ✔✔ correct answer causes damage that then leads to more, proximate of all
resulting losses
Damages are covered if: - ✔✔ correct answer caused by covered peril, or if their proximate cause
was a covered peril
risk - ✔✔ correct answer potenial for loss, insured item
hazard - ✔✔ correct answer anything that increases exposure
peril - ✔✔ correct answer exposure to injury, loss, or destruction; grave risk; jeopardy; danger
valuation - ✔✔ correct answer The process of estimating what an item is worth
1. actual cash value/market(ACV)
2. replacement cost(RC)
3. functional replacement cost
, Mass Automotive Damage Appraiser
4. stated amount
5. valued' guaranteed value
actual cash value - ✔✔ correct answer -ACV- a valuation method that takes into account depreciation
-same as market and depreciated value
-ACV offers lower premiums for less coverage
Acv Formula - ✔✔ correct answer acv=replacement cost-depreciation
replacement cost - ✔✔ correct answer todays price
depreciation - ✔✔ correct answer an items estimated for loss value due to wear and tear/age
Replacement Cost(RC) - ✔✔ correct answer based on replacing an mite at current market prices
regardless of depreciation
Functional Replacement Cost - ✔✔ correct answer Pays to replace an outdated obsolete item with a
functionally equivalent item not identical
-level of coverage falls between RC and ACV
Stated Amount - ✔✔ correct answer Property value is stated by the insured when applying for
insurance
-When loss occurs, policy pays up to the stated amount or ACV, whichever is less
valued policy - ✔✔ correct answer guaranteed value- determined prior to the issuance of policy
Avoids the confusion of assessing appreciation or depreciation
ACV Actual Cash Value - ✔✔ correct answer usually beneficial to the policy holder
ACV - ✔✔ correct answer generally reflects current market value of an item
Principle of Indemnity - ✔✔ correct answer Restoration to approximate previous financial condition,
no more no less.
Peril - ✔✔ correct answer The actual cause of a loss
Loss - ✔✔ correct answer reduction in value/financial loss/amount paid out in claim settlement
Direct Loss - ✔✔ correct answer physical harm to a tangible property
indirect loss/consequential Loss - ✔✔ correct answer an economic loss that results from a direct loss
Proximate Cause - ✔✔ correct answer when there is an unbroken chain of events between an
occurrence and a loss, then that occurrence is the proximate cause of loss
Occurrence - ✔✔ correct answer an event, incident, or condition that causes damage
Original Occurence - ✔✔ correct answer causes damage that then leads to more, proximate of all
resulting losses
Damages are covered if: - ✔✔ correct answer caused by covered peril, or if their proximate cause
was a covered peril
risk - ✔✔ correct answer potenial for loss, insured item
hazard - ✔✔ correct answer anything that increases exposure
peril - ✔✔ correct answer exposure to injury, loss, or destruction; grave risk; jeopardy; danger
valuation - ✔✔ correct answer The process of estimating what an item is worth
1. actual cash value/market(ACV)
2. replacement cost(RC)
3. functional replacement cost
, Mass Automotive Damage Appraiser
4. stated amount
5. valued' guaranteed value
actual cash value - ✔✔ correct answer -ACV- a valuation method that takes into account depreciation
-same as market and depreciated value
-ACV offers lower premiums for less coverage
Acv Formula - ✔✔ correct answer acv=replacement cost-depreciation
replacement cost - ✔✔ correct answer todays price
depreciation - ✔✔ correct answer an items estimated for loss value due to wear and tear/age
Replacement Cost(RC) - ✔✔ correct answer based on replacing an mite at current market prices
regardless of depreciation
Functional Replacement Cost - ✔✔ correct answer Pays to replace an outdated obsolete item with a
functionally equivalent item not identical
-level of coverage falls between RC and ACV
Stated Amount - ✔✔ correct answer Property value is stated by the insured when applying for
insurance
-When loss occurs, policy pays up to the stated amount or ACV, whichever is less
valued policy - ✔✔ correct answer guaranteed value- determined prior to the issuance of policy
Avoids the confusion of assessing appreciation or depreciation
ACV Actual Cash Value - ✔✔ correct answer usually beneficial to the policy holder
ACV - ✔✔ correct answer generally reflects current market value of an item
