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PA APPRAISER EXAM 2025| BRAND NEW ACTUAL
EXAM WITH 100% VERIFIED QUESTIONS AND
CORRECT SOLUTIONS| GUARANTEED VALUE PACK|
ACE YOUR GRADES.
Principle of Indemnity - (answer)restoration to approximate previous financial
condition; no more, no less
Insurable Interest - (answer)direct financial interest in protecting something or
someone
Lender Interest - (answer)protects a lender who loans money to a buyer
Risk - (answer)potential for financial loss or an insured item
Exposure - (answer)is openness to loss or damage
hazard - (answer)thing that increases the possibility to loss
moral hazard - (answer)results from policyholder's conscious decision
physical hazard - (answer)conditions that increase the chance of loss
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Peril - (answer)the actual cause of loss or damage
Loss - (answer)financial loss due to an occurrence or accident
Proximate cause - (answer)the primary event or series of events that directly
leads to an insured loss
Direct loss - (answer)physical harm to tangible property caused by a peril. Ex:
Tree falls on car
Indirect loss - (answer)added expenses or lost income because of physical
damages. Ex: rental car
Occurrence - (answer)an event, incident, or condition that causes damage
ACV (Actual Cash Value) - (answer)Replacement cost - depreciation
replacement cost - (answer)method of valuation based on cost of replacing an
item at current market prices, regardless of depreciation
Functional replacement cost - (answer)pays to replace an outdated, obsolete
item with a functionally equivalent item
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Stated amount - (answer)property value is stated by the insured when applying
for insurance
insurance policy - (answer)the legal contract b/w the insurer and the insured
cancellation and nonrenewal - (answer)insured may cancel at any time, but the
insurer is much more restricted
declarations page - (answer)names of both parties
policy #
location and description of insured item
deductible
premium
first named insured - (answer)the 1st person or organization listed on the dec
page
additional insured - (answer)person or org. that is added to the policy at the
request of the first named insured and benefits from policy, but is not allowed to
make changed
Loss Payable Clause - (answer)lender listed as loss payee if a loss occurs
PA APPRAISER EXAM 2025| BRAND NEW ACTUAL
EXAM WITH 100% VERIFIED QUESTIONS AND
CORRECT SOLUTIONS| GUARANTEED VALUE PACK|
ACE YOUR GRADES.
Principle of Indemnity - (answer)restoration to approximate previous financial
condition; no more, no less
Insurable Interest - (answer)direct financial interest in protecting something or
someone
Lender Interest - (answer)protects a lender who loans money to a buyer
Risk - (answer)potential for financial loss or an insured item
Exposure - (answer)is openness to loss or damage
hazard - (answer)thing that increases the possibility to loss
moral hazard - (answer)results from policyholder's conscious decision
physical hazard - (answer)conditions that increase the chance of loss
,2|Page
Peril - (answer)the actual cause of loss or damage
Loss - (answer)financial loss due to an occurrence or accident
Proximate cause - (answer)the primary event or series of events that directly
leads to an insured loss
Direct loss - (answer)physical harm to tangible property caused by a peril. Ex:
Tree falls on car
Indirect loss - (answer)added expenses or lost income because of physical
damages. Ex: rental car
Occurrence - (answer)an event, incident, or condition that causes damage
ACV (Actual Cash Value) - (answer)Replacement cost - depreciation
replacement cost - (answer)method of valuation based on cost of replacing an
item at current market prices, regardless of depreciation
Functional replacement cost - (answer)pays to replace an outdated, obsolete
item with a functionally equivalent item
, 3|Page
Stated amount - (answer)property value is stated by the insured when applying
for insurance
insurance policy - (answer)the legal contract b/w the insurer and the insured
cancellation and nonrenewal - (answer)insured may cancel at any time, but the
insurer is much more restricted
declarations page - (answer)names of both parties
policy #
location and description of insured item
deductible
premium
first named insured - (answer)the 1st person or organization listed on the dec
page
additional insured - (answer)person or org. that is added to the policy at the
request of the first named insured and benefits from policy, but is not allowed to
make changed
Loss Payable Clause - (answer)lender listed as loss payee if a loss occurs
