MASS AUTOMOTIVE DAMAGE
APPRAISER EXAM UPDATED
QUESTIONS AND CORRECT ANSWERS.
Principle of Indemnity - ANS Restoration to approximate previous financial condition, no
more no less.
Peril - ANS The actual cause of a loss
Loss - ANS reduction in value/financial loss/amount paid out in claim settlement
Direct Loss - ANS physical harm to a tangible property
indirect loss/consequential Loss - ANS an economic loss that results from a direct loss
Proximate Cause - ANS when there is an unbroken chain of events between an occurrence
and a loss, then that occurrence is the proximate cause of loss
Occurrence - ANS an event, incident, or condition that causes damage
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Original Occurence - ANS causes damage that then leads to more, proximate of all resulting
losses
Damages are covered if: - ANS caused by covered peril, or if their proximate cause was a
covered peril
risk - ANS potenial for loss, insured item
hazard - ANS anything that increases exposure
peril - ANS exposure to injury, loss, or destruction; grave risk; jeopardy; danger
valuation - ANS 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 - ANS -ACV- a valuation method that takes into account depreciation
-same as market and depreciated value
-ACV offers lower premiums for less coverage
Acv Formula - ANS acv=replacement cost-depreciation
replacement cost - ANS todays price
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
APPRAISER EXAM UPDATED
QUESTIONS AND CORRECT ANSWERS.
Principle of Indemnity - ANS Restoration to approximate previous financial condition, no
more no less.
Peril - ANS The actual cause of a loss
Loss - ANS reduction in value/financial loss/amount paid out in claim settlement
Direct Loss - ANS physical harm to a tangible property
indirect loss/consequential Loss - ANS an economic loss that results from a direct loss
Proximate Cause - ANS when there is an unbroken chain of events between an occurrence
and a loss, then that occurrence is the proximate cause of loss
Occurrence - ANS an event, incident, or condition that causes damage
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Original Occurence - ANS causes damage that then leads to more, proximate of all resulting
losses
Damages are covered if: - ANS caused by covered peril, or if their proximate cause was a
covered peril
risk - ANS potenial for loss, insured item
hazard - ANS anything that increases exposure
peril - ANS exposure to injury, loss, or destruction; grave risk; jeopardy; danger
valuation - ANS 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 - ANS -ACV- a valuation method that takes into account depreciation
-same as market and depreciated value
-ACV offers lower premiums for less coverage
Acv Formula - ANS acv=replacement cost-depreciation
replacement cost - ANS todays price
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
