Chapter 3

Question 1

Scope

Answer 1

A list of the areas damaged that includes the type of damage, a description of the proposed action to take regarding the damaged property (such as repair, replace, remove, or demolish), and the area’s measurements.

Question 2

Origin and cause experts

Answer 2

Experts who independently determine how and where a fire began.

Question 3

Salvors

Answer 3

Specialists who separate damaged merchandise from undamaged merchandise, prepare inventories of damaged and destroyed property, and establish values of damaged or destroyed business property.

Question 4

Subrogation

Answer 4

The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who cause the loss or is otherwise legally liable for the loss.

Question 5

Draft (check)

Answer 5

A type of commercial paper containing an unconditional order by the drawer (person making out the draft), requiring the drawee, usually a bank, to pay a certain sum to the payee or to the bearer.

Question 6

Advance payment receipt

Answer 6

A document that helps keep track of payments made under certain coverages, helps comply with unfair claim practices laws, and clarifies to the insured that the advance payments will be applied against the final claim.