Mass Automotive Damage Appraiser
Principle of Indemnity - Answer-Restoration to approximate previous financial condition, no more no
less.
Peril - Answer-The actual cause of a loss
Loss - Answer-reduction in value/financial loss/amount paid out in claim settlement
Direct Loss - Answer-physical harm to a tangible property
indirect loss/consequential Loss - Answer-an economic loss that results from a direct loss
Proximate Cause - 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 - Answer-an event, incident, or condition that causes damage
Original Occurence - Answer-causes damage that then leads to more, proximate of all resulting losses
Damages are covered if: - Answer-caused by covered peril, or if their proximate cause was a covered
peril
risk - Answer-potenial for loss, insured item
, hazard - Answer-anything that increases exposure
peril - Answer-exposure to injury, loss, or destruction; grave risk; jeopardy; danger
valuation - Answer-The process of estimating what an item is worth
1. actual cash value/market(ACV)
2. replacement cost(RC)
3. functional replacement cost
4. stated amount
5. valued' guaranteed value
actual cash value - 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 - Answer-acv=replacement cost-depreciation
replacement cost - Answer-todays price
depreciation - Answer-an items estimated for loss value due to wear and tear/age
Replacement Cost(RC) - Answer-based on replacing an mite at current market prices regardless of
depreciation
Functional Replacement Cost - Answer-Pays to replace an outdated obsolete item with a functionally
equivalent item not identical
Principle of Indemnity - Answer-Restoration to approximate previous financial condition, no more no
less.
Peril - Answer-The actual cause of a loss
Loss - Answer-reduction in value/financial loss/amount paid out in claim settlement
Direct Loss - Answer-physical harm to a tangible property
indirect loss/consequential Loss - Answer-an economic loss that results from a direct loss
Proximate Cause - 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 - Answer-an event, incident, or condition that causes damage
Original Occurence - Answer-causes damage that then leads to more, proximate of all resulting losses
Damages are covered if: - Answer-caused by covered peril, or if their proximate cause was a covered
peril
risk - Answer-potenial for loss, insured item
, hazard - Answer-anything that increases exposure
peril - Answer-exposure to injury, loss, or destruction; grave risk; jeopardy; danger
valuation - Answer-The process of estimating what an item is worth
1. actual cash value/market(ACV)
2. replacement cost(RC)
3. functional replacement cost
4. stated amount
5. valued' guaranteed value
actual cash value - 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 - Answer-acv=replacement cost-depreciation
replacement cost - Answer-todays price
depreciation - Answer-an items estimated for loss value due to wear and tear/age
Replacement Cost(RC) - Answer-based on replacing an mite at current market prices regardless of
depreciation
Functional Replacement Cost - Answer-Pays to replace an outdated obsolete item with a functionally
equivalent item not identical
