CMFAS CGI Fire & Commercial Property Insurance question: claim stage on a larger property loss

CMFAS CGIFire & Commercial Property Insurance

At the claim stage on a larger property loss, what does a loss adjuster typically do?

A Pay the full sum insured automatically once the fire brigade report confirms the loss
B Settle the loss at replacement cost, ignoring any excess or basis of cover in the policy
C Cancel the policy first, then assess the loss for the insured's new insurer
D Quantify the damage and apply depreciation, reinstatement terms or average as relevant

Show the answer and explanation

Answer: D. Quantify the damage and apply depreciation, reinstatement terms or average as relevant

Loss adjusters quantify the damage, apply depreciation (indemnity), reinstatement conditions, and average where the sum insured is inadequate, settling subject to sum insured, excess and basis of cover.

Common mistake

Assuming settlement ignores basis of cover, average and excess.

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CMFAS CGI Fire & Commercial Property Insurance question: claim stage on a larger property loss

Answer: D. Quantify the damage and apply depreciation, reinstatement terms or average as relevant

Common mistake

Related CMFAS CGI questions

CMFAS CGI Fire & Commercial Property Insurance question: claim stage on a larger property loss

Answer: D. Quantify the damage and apply depreciation, reinstatement terms or average as relevant

Common mistake

Related CMFAS CGI questions