Property Claims Assessment Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property Claims Assessment flashcards as text
What does the 'anti-concurrent causation' (ACC) clause in a property policy accomplish?
Answer: It excludes losses caused in part by an excluded peril, even if a covered peril also contributed
ACC clauses exclude losses where an excluded peril contributes to the damage in any sequence, countering the concurrent causation doctrine.
A homeowner's detached garage is used partly for personal use and partly as a home office. A fire damages the garage. Under a standard HO-3 policy, what coverage applies?
Answer: Coverage B, because it is a detached structure, subject to its 10% sublimit
Detached structures fall under Coverage B, which typically provides 10% of Coverage A limits, though partial business use may trigger an exclusion for that portion.
An insured's claim for water damage is denied because the adjuster determines the loss resulted from 'continuous or repeated seepage' over time. Which policy exclusion most likely applies?
Answer: Wear and tear / latent defect exclusion
Gradual seepage, leakage, or continuous water intrusion over time is typically excluded under the wear and tear or deterioration exclusion in property policies.
What is the significance of the 'period of restoration' in a business interruption claim?
Answer: It defines the period during which lost income and extra expenses are covered
The period of restoration defines when business interruption coverage begins (typically after a waiting period) and ends when operations are or should be restored.
Which appraisal method is most commonly used to estimate the value of unique or historic properties where comparable sales data is scarce?
Answer: Cost approach
The cost approach estimates value by calculating the cost to reproduce or replace the structure minus depreciation, making it ideal for unique properties with few comparables.
When an insurer pays a property claim and then pursues recovery from a negligent third party, this right is known as:
Answer: Subrogation
Subrogation allows the insurer, after paying the insured's claim, to step into the insured's shoes and recover the loss from the responsible third party.
A property policy has a $250,000 limit with a $10,000 deductible. The insured suffers a $75,000 loss. What does the insurer pay?
Answer: $65,000
The insurer pays the loss minus the deductible: $75,000 − $10,000 = $65,000.