CCA CCA Auto and Property Claims

Question 1

What does 'actual cash value' (ACV) mean when settling a property claim?

Accepted Answer

The replacement cost minus depreciation

Answer

The original purchase price of the property

Answer

The amount the insured paid for coverage

Answer

The salvage value of destroyed property

Question 2

Under a personal auto policy, 'uninsured motorist coverage' protects the insured when:

Accepted Answer

A not-at-fault insured is injured by a driver who has no liability insurance

Answer

The insured drives without a valid license

Answer

The insured's vehicle is stolen by an unknown person

Answer

The insured causes an accident and the other party is uninsured

Question 3

What is 'betterment' in a property or auto claim?

Accepted Answer

A reduction in claim payment when a repair results in an improvement over pre-loss condition

Answer

Improvements made to the property before the loss

Answer

Additional coverage purchased after a loss occurs

Answer

An increase in the settlement to reflect market appreciation

Question 4

A vehicle is declared a total loss when:

Accepted Answer

The cost of repairs exceeds the vehicle's actual cash value

Answer

The driver is at fault in the accident

Answer

The vehicle is more than 10 years old

Answer

Any airbags deploy during a collision

Question 5

Under a homeowners policy, which peril is typically EXCLUDED from standard coverage?

Accepted Answer

Flood damage

Answer

Fire damage

Answer

Theft

Answer

Wind damage

Question 6

What is a 'deductible' in an insurance policy?

Accepted Answer

The amount the insured must pay out of pocket before the insurer pays

Answer

The maximum amount the insurer will pay per occurrence

Answer

The premium discount for filing no claims

Answer

The penalty applied for late premium payment