NYS Damage Appraisal & Inspection
Procedures Exam -90 Q&A with Rationales
**1. Jim Smith is involved in a collision claim and is no longer able to
use the vehicle to go to work. This "loss of use" is referred to as a:**
A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
**Correct Answer: D) Consequential loss**
**Rationale:** Consequential loss refers to secondary or indirect
damages that result from a covered loss, such as loss of use of a
vehicle. This is distinct from direct loss, which is the immediate
physical damage to the vehicle itself. Consequential losses typically
cover expenses like rental car costs during repairs .
---
**2. In auto physical damage insurance, an insured peril cause of loss
is known as:**
,A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
**Correct Answer: A) Direct loss**
**Rationale:** A direct loss is the immediate, physical damage to the
insured property caused by a covered peril. In auto insurance, this
includes collision damage, theft, fire, or other covered events that
directly harm the vehicle itself .
---
**3. Determining the value of a damaged vehicle as to its
replacement value or actual cash value is referred to as:**
A) Damage value
B) Diminished value
C) Loss valuation
D) Market value
**Correct Answer: C) Loss valuation**
,**Rationale:** Loss valuation is the process of determining the
monetary value of a damaged vehicle, either through replacement
cost or actual cash value calculations. This assessment is fundamental
to claims settlement and helps establish what the insurer owes the
policyholder .
---
**4. The burden of proof that a covered loss has occurred is normally
a duty of:**
A) The insurance company
B) The adjuster
C) The appraiser
D) The insured
**Correct Answer: D) The insured**
**Rationale:** The insured bears the burden of proving that a
covered loss occurred under their policy. This is a fundamental
principle of insurance law—the policyholder must demonstrate that
the damage falls within the scope of coverage provided by their
insurance contract .
---
, ## Appraiser Duties & Licensing
**5. Which of the following is NOT a duty of an auto appraiser?**
A) List unrelated damage to the vehicle
B) Describe condition of the vehicle
C) Identify betterment or depreciation
D) Determine "loss of use" damages
**Correct Answer: D) Determine "loss of use" damages**
**Rationale:** Appraisers focus on physical damage assessment, not
consequential losses like loss of use. Determining loss of use
damages is typically the adjuster's responsibility, while appraisers
document vehicle condition, list damage, and account for
depreciation or betterment .
---
**6. Which of the following individuals are NOT required to secure an
adjuster license in New York?**
A) A licensed New York attorney
B) An officer of an authorized insurer
C) None of these are required to hold an adjuster license
Procedures Exam -90 Q&A with Rationales
**1. Jim Smith is involved in a collision claim and is no longer able to
use the vehicle to go to work. This "loss of use" is referred to as a:**
A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
**Correct Answer: D) Consequential loss**
**Rationale:** Consequential loss refers to secondary or indirect
damages that result from a covered loss, such as loss of use of a
vehicle. This is distinct from direct loss, which is the immediate
physical damage to the vehicle itself. Consequential losses typically
cover expenses like rental car costs during repairs .
---
**2. In auto physical damage insurance, an insured peril cause of loss
is known as:**
,A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
**Correct Answer: A) Direct loss**
**Rationale:** A direct loss is the immediate, physical damage to the
insured property caused by a covered peril. In auto insurance, this
includes collision damage, theft, fire, or other covered events that
directly harm the vehicle itself .
---
**3. Determining the value of a damaged vehicle as to its
replacement value or actual cash value is referred to as:**
A) Damage value
B) Diminished value
C) Loss valuation
D) Market value
**Correct Answer: C) Loss valuation**
,**Rationale:** Loss valuation is the process of determining the
monetary value of a damaged vehicle, either through replacement
cost or actual cash value calculations. This assessment is fundamental
to claims settlement and helps establish what the insurer owes the
policyholder .
---
**4. The burden of proof that a covered loss has occurred is normally
a duty of:**
A) The insurance company
B) The adjuster
C) The appraiser
D) The insured
**Correct Answer: D) The insured**
**Rationale:** The insured bears the burden of proving that a
covered loss occurred under their policy. This is a fundamental
principle of insurance law—the policyholder must demonstrate that
the damage falls within the scope of coverage provided by their
insurance contract .
---
, ## Appraiser Duties & Licensing
**5. Which of the following is NOT a duty of an auto appraiser?**
A) List unrelated damage to the vehicle
B) Describe condition of the vehicle
C) Identify betterment or depreciation
D) Determine "loss of use" damages
**Correct Answer: D) Determine "loss of use" damages**
**Rationale:** Appraisers focus on physical damage assessment, not
consequential losses like loss of use. Determining loss of use
damages is typically the adjuster's responsibility, while appraisers
document vehicle condition, list damage, and account for
depreciation or betterment .
---
**6. Which of the following individuals are NOT required to secure an
adjuster license in New York?**
A) A licensed New York attorney
B) An officer of an authorized insurer
C) None of these are required to hold an adjuster license
