Unit 5 Quiz Flashcards
What is the formula for figuring ACTUAL CASH VALUE (ACV)?
Replacement cost - depreciation
Who has the right of salvage?
Insurer. But adjuster must have determined property to be a total loss and received title before this right can be exercised.
When the insurer and the insured cannot agree on the value of a loss, the matter is submitted to disinterested parties for resolution. Under standard appraisal clause, how many parties are involved in determining the value of the loss?
- The insured’s appraiser, the insurer’s appraiser, and an umpire.
Which of the following legal principles allows insurance companies to collect, from a negligent third party, damages it paid to an insured?
Subrogation.
Arbitration involves…
Coverage issues.
To whom might an insured abandon her property to be paid for a total loss?
Abandonment is not allowed in Texas.
An adjuster must always do which of the following regarding claims practices?
Investigate the claim.
The condition that provides a means to settle the amount of a loss when the insured and the insurance company cannot agree is…
… the appraisal condition.
An insured purchased new furniture for $6,000. At the time of a fire loss, it had depreciated $2,000. The same furniture will cost $7,000 to replace. What is the ACV of the destroyed furniture?
$5,000.
