Mass Automotive Damage Appraiser 2023

Mass Automotive Damage Appraiser 2023 Principle of Indemnity Restoration to approximate previous financial condition, no more no less. Peril The actual cause of a loss Loss reduction in value/financial loss/amount paid out in claim settlement Direct Loss physical harm to a tangible property indirect loss/consequential Loss an economic loss that results from a direct loss Proximate Cause when there is an unbroken chain of events between an occurrence and a loss, then that occurrence is the proximate cause of loss Occurrence an event, incident, or condition that causes damage Original Occurence causes damage that then leads to more, proximate of all resulting losses Damages are covered if: caused by covered peril, or if their proximate cause was a covered peril risk potenial for loss, insured item hazard anything that increases exposure peril exposure to injury, loss, or destruction; grave risk; jeopardy; danger valuation The process of estimating what an item is worth 1. actual cash value/market(ACV) 2. replacement cost(RC) 3. functional replacement cost 4. stated amount 5. valued' guaranteed value actual cash value -ACV- a valuation method that takes into account depreciation -same as market and depreciated value -ACV offers lower premiums for less coverage Acv Formula acv=replacement cost-depreciation replacement cost todays price depreciation an items estimated for loss value due to wear and tear/age Replacement Cost(RC) based on replacing an mite at current market prices regardless of depreciation Functional Replacement Cost Pays to replace an outdated obsolete item with a functionally equivalent item not identical -level of coverage falls between RC and ACV Stated Amount Property value is stated by the insured when applying for insurance -When loss occurs, policy pays up to the stated amount or ACV, whichever is less valued policy guaranteed value- determined prior to the issuance of policy Avoids the confusion of assessing appreciation or depreciation ACV Actual Cash Value usually beneficial to the policy holder ACV generally reflects current market value of an item policy limits establish the maximum payout of an insurance policy. in auto each type of coverage has a limit salvage portion or value property that remains after loss handling salvage 1. insurer deducts salvage from settlement amount 2. insurer takes ownership of damaged property after paying full value of damaged prop. 3. insurers often take ownership of vehicles after total loss abandonment clause insured is prohibited from forcing the insurer to take possession of damaged property for the purpose of repair or disposal different than salvage, where the insurer chooses to take possession of the damaged property after paying to replace it A pre-defined monetary potion of an insurance claim paid by a policy holder is a deductible Loss Payable Clause ensures the lender will be listed as a payee under the policy if damages occurs to the insured property deductible pre defined monetary portio