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PA APPRAISAL AUTO PHYSICAL DAMAGE EXAM AND
LICENSE EXAM 16-20 | ALL QUESTIONS AND CORRECT
ANSWERS (GRADED A+) | VERIFIED ANSWERS | 2025-2026.
GUARANTEE PASS
1. What is the primary duty of an auto damage appraiser licensed in
Pennsylvania?
A. To repair the vehicle.
B. To provide an unbiased appraisal of physical damage.
C. To negotiate directly with claimants without insurer involvement.
D. To represent the insured in arbitration.
Answer: B — To provide an unbiased appraisal of physical damage.
Rationale: The PA appraiser’s role is objective assessment of loss; they do
not repair vehicles or act as advocates.
2. Which of the following is required to obtain a Pennsylvania Auto
Damage Appraiser license?
A. Completion of a 4-year degree.
B. Passing the state licensing exam.
C. Having a minimum of 10 years in auto repair.
D. Membership in the Insurance Federation of PA.
Answer: B — Passing the state licensing exam.
Rationale: The exam is mandatory; no degree or association membership is
required.
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3. When estimating damages, what must an appraiser primarily
consider?
A. Manufacturer’s suggested retail price.
B. Pre-loss condition of the vehicle.
C. Original owner’s opinion.
D. Blue Book trade-in value only.
Answer: B — Pre-loss condition of the vehicle.
Rationale: PA law requires appraisers to account for vehicle age, mileage,
and condition at the time of loss.
4. In PA, who regulates the licensing and conduct of auto appraisers?
A. Department of Revenue.
B. Pennsylvania Insurance Department.
C. Department of Transportation.
D. National Association of Insurance Commissioners.
Answer: B — Pennsylvania Insurance Department.
Rationale: Licensing and regulation of appraisers fall under the state’s
Insurance Department authority.
5. An appraiser notices hidden damage after a repair has started. What
should they do?
A. Ignore it if the customer approves repairs.
B. Submit a supplemental appraisal to the insurer.
C. Ask the repair shop to absorb the costs.
D. Wait until the final bill arrives.
Answer: B — Submit a supplemental appraisal to the insurer.
Rationale: Supplements ensure accurate and updated estimates reflecting
actual damage.
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6. Which of the following would be considered an unfair appraisal
practice?
A. Noting aftermarket parts installed by the insured.
B. Failing to inspect the vehicle and relying solely on photos without
consent.
C. Including labor rates for the repair shop.
D. Adjusting for depreciation of older parts.
Answer: B — Failing to inspect the vehicle and relying solely on photos
without consent.
Rationale: Direct inspection is required unless both parties agree otherwise.
7. What must be included in a written appraisal?
A. The insured’s full medical history.
B. Repair facility’s monthly revenue.
C. Description of damage, labor, and parts needed.
D. Vehicle’s resale value after repairs.
Answer: C — Description of damage, labor, and parts needed.
Rationale: PA law requires specific documentation of all physical damage
and repair costs.
8. Which parts must be clearly identified when listed in an estimate?
A. Parts ordered by color.
B. OEM, aftermarket, reconditioned, or used parts.
C. Dealer-only parts.
D. Parts priced below wholesale.
Answer: B — OEM, aftermarket, reconditioned, or used parts.
Rationale: Transparency in part type prevents misleading cost estimates.
9. An appraiser is also employed by a body shop. This creates what type
of conflict?
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A. No conflict, as long as the work is done correctly.
B. Conflict of interest.
C. Business necessity.
D. Acceptable dual employment.
Answer: B — Conflict of interest.
Rationale: Appraisers must remain impartial; financial interest in repairs is
prohibited.
10. Who has the authority to revoke or suspend an appraiser’s license?
A. State courts only.
B. Insurance company managers.
C. Pennsylvania Insurance Department.
D. Auto repair trade groups.
Answer: C — Pennsylvania Insurance Department.
Rationale: Disciplinary action falls under the Insurance Department’s
authority.
11. What should an appraiser do if they cannot determine the extent of
damages safely?
A. Provide the lowest possible estimate.
B. Document that a teardown inspection is required.
C. Reject the claim.
D. Rely on prior appraisals.
Answer: B — Document that a teardown inspection is required.
Rationale: Accurate appraisals require full inspection, sometimes after
disassembly.
12. Which of the following is considered fraud by an appraiser?
A. Disclosing use of reconditioned parts.
B. Falsely inflating damage estimates for personal gain.
PA APPRAISAL AUTO PHYSICAL DAMAGE EXAM AND
LICENSE EXAM 16-20 | ALL QUESTIONS AND CORRECT
ANSWERS (GRADED A+) | VERIFIED ANSWERS | 2025-2026.
GUARANTEE PASS
1. What is the primary duty of an auto damage appraiser licensed in
Pennsylvania?
A. To repair the vehicle.
B. To provide an unbiased appraisal of physical damage.
C. To negotiate directly with claimants without insurer involvement.
D. To represent the insured in arbitration.
Answer: B — To provide an unbiased appraisal of physical damage.
Rationale: The PA appraiser’s role is objective assessment of loss; they do
not repair vehicles or act as advocates.
2. Which of the following is required to obtain a Pennsylvania Auto
Damage Appraiser license?
A. Completion of a 4-year degree.
B. Passing the state licensing exam.
C. Having a minimum of 10 years in auto repair.
D. Membership in the Insurance Federation of PA.
Answer: B — Passing the state licensing exam.
Rationale: The exam is mandatory; no degree or association membership is
required.
,2|Page
3. When estimating damages, what must an appraiser primarily
consider?
A. Manufacturer’s suggested retail price.
B. Pre-loss condition of the vehicle.
C. Original owner’s opinion.
D. Blue Book trade-in value only.
Answer: B — Pre-loss condition of the vehicle.
Rationale: PA law requires appraisers to account for vehicle age, mileage,
and condition at the time of loss.
4. In PA, who regulates the licensing and conduct of auto appraisers?
A. Department of Revenue.
B. Pennsylvania Insurance Department.
C. Department of Transportation.
D. National Association of Insurance Commissioners.
Answer: B — Pennsylvania Insurance Department.
Rationale: Licensing and regulation of appraisers fall under the state’s
Insurance Department authority.
5. An appraiser notices hidden damage after a repair has started. What
should they do?
A. Ignore it if the customer approves repairs.
B. Submit a supplemental appraisal to the insurer.
C. Ask the repair shop to absorb the costs.
D. Wait until the final bill arrives.
Answer: B — Submit a supplemental appraisal to the insurer.
Rationale: Supplements ensure accurate and updated estimates reflecting
actual damage.
,3|Page
6. Which of the following would be considered an unfair appraisal
practice?
A. Noting aftermarket parts installed by the insured.
B. Failing to inspect the vehicle and relying solely on photos without
consent.
C. Including labor rates for the repair shop.
D. Adjusting for depreciation of older parts.
Answer: B — Failing to inspect the vehicle and relying solely on photos
without consent.
Rationale: Direct inspection is required unless both parties agree otherwise.
7. What must be included in a written appraisal?
A. The insured’s full medical history.
B. Repair facility’s monthly revenue.
C. Description of damage, labor, and parts needed.
D. Vehicle’s resale value after repairs.
Answer: C — Description of damage, labor, and parts needed.
Rationale: PA law requires specific documentation of all physical damage
and repair costs.
8. Which parts must be clearly identified when listed in an estimate?
A. Parts ordered by color.
B. OEM, aftermarket, reconditioned, or used parts.
C. Dealer-only parts.
D. Parts priced below wholesale.
Answer: B — OEM, aftermarket, reconditioned, or used parts.
Rationale: Transparency in part type prevents misleading cost estimates.
9. An appraiser is also employed by a body shop. This creates what type
of conflict?
, 4|Page
A. No conflict, as long as the work is done correctly.
B. Conflict of interest.
C. Business necessity.
D. Acceptable dual employment.
Answer: B — Conflict of interest.
Rationale: Appraisers must remain impartial; financial interest in repairs is
prohibited.
10. Who has the authority to revoke or suspend an appraiser’s license?
A. State courts only.
B. Insurance company managers.
C. Pennsylvania Insurance Department.
D. Auto repair trade groups.
Answer: C — Pennsylvania Insurance Department.
Rationale: Disciplinary action falls under the Insurance Department’s
authority.
11. What should an appraiser do if they cannot determine the extent of
damages safely?
A. Provide the lowest possible estimate.
B. Document that a teardown inspection is required.
C. Reject the claim.
D. Rely on prior appraisals.
Answer: B — Document that a teardown inspection is required.
Rationale: Accurate appraisals require full inspection, sometimes after
disassembly.
12. Which of the following is considered fraud by an appraiser?
A. Disclosing use of reconditioned parts.
B. Falsely inflating damage estimates for personal gain.
