Appraising Damage Claims
Introduction to Loss Valuation Methods - Answer-Appraisers work alongside adjusters to help insurance
companies settle claims fairly and promptly.
Designated Representative - Answer-Person chose by insurer to legally represent her in negotiations
with the insurer
Agreed Price - Answer-Amount the insured and insurer agree is reasonable to repair vehicle
Substantially Similar Vehicle - Answer-Vehicle of same year, make, and model and in substantially the
same condition as the insured vehicle.
Constructive total loss - Answer-Cost to repair damage to vehicle is more than the vehicle's value -
treated as a total loss.
Adjusting Partial Losses- Subrogation - Answer-When insurer demands subrogation from third party,
must include amount of insured's deductible in the demand and return that amount to the insured once
received.
Partial losses - estimates - Answer-When insurer prepares the estimate:
-Must be sufficient to repair vehicle satisfactorily
-Insured must be given a copy of the estimate and list of repair shops
, -Must not require insured to use a particular repair shop
- May only recommend a facility in the case of window glass
Unsatisfactory repair (Partial losses) - Answer-When insurer recommends repair shop:
If insured is not satisfied with repairs, insurer must restore vehicle to pre-loss condition within a
reasonable amount of time, at no additional cost.
Betterment or Depreciation (Partial losses) - Answer--Can only be taken for parts that normally need
repair or replacement during the life of the vehicle.
-Must be calculated with percentage of use already gotten out of the part
-Must be included in the claim file
BETTER AND DEPRECIATION EXAMPLE (Partial losses) - Answer--A part costs $500 and is expected to last
5 years.
-The item depreciates $100 dollars every year.
-If the part is 2 years old and the claim occurs, the insurer may only deduct $200 for betterment and
depreciation.
Deductions for Previous Damage (Partial Losses) - Answer--Must be itemized explanation using
measurable details.
Introduction to Loss Valuation Methods - Answer-Appraisers work alongside adjusters to help insurance
companies settle claims fairly and promptly.
Designated Representative - Answer-Person chose by insurer to legally represent her in negotiations
with the insurer
Agreed Price - Answer-Amount the insured and insurer agree is reasonable to repair vehicle
Substantially Similar Vehicle - Answer-Vehicle of same year, make, and model and in substantially the
same condition as the insured vehicle.
Constructive total loss - Answer-Cost to repair damage to vehicle is more than the vehicle's value -
treated as a total loss.
Adjusting Partial Losses- Subrogation - Answer-When insurer demands subrogation from third party,
must include amount of insured's deductible in the demand and return that amount to the insured once
received.
Partial losses - estimates - Answer-When insurer prepares the estimate:
-Must be sufficient to repair vehicle satisfactorily
-Insured must be given a copy of the estimate and list of repair shops
, -Must not require insured to use a particular repair shop
- May only recommend a facility in the case of window glass
Unsatisfactory repair (Partial losses) - Answer-When insurer recommends repair shop:
If insured is not satisfied with repairs, insurer must restore vehicle to pre-loss condition within a
reasonable amount of time, at no additional cost.
Betterment or Depreciation (Partial losses) - Answer--Can only be taken for parts that normally need
repair or replacement during the life of the vehicle.
-Must be calculated with percentage of use already gotten out of the part
-Must be included in the claim file
BETTER AND DEPRECIATION EXAMPLE (Partial losses) - Answer--A part costs $500 and is expected to last
5 years.
-The item depreciates $100 dollars every year.
-If the part is 2 years old and the claim occurs, the insurer may only deduct $200 for betterment and
depreciation.
Deductions for Previous Damage (Partial Losses) - Answer--Must be itemized explanation using
measurable details.
