Los Angeles Claims Adjuster Property and Casualty Practice Exam 2025 - Free Claims Adjuster Exam Questions and Study Guide

Question: 1 / 400

What is the purpose of the appraisal clause in a property insurance policy?

To establish coverage limits

To demand a binding appraisal of property value in disputes

The appraisal clause in a property insurance policy serves as a mechanism for resolving disputes regarding the value of the insured property or the amount of a loss. When the insured and the insurer cannot agree on the value of a claim, either party can invoke this clause to demand a formal appraisal process. This process typically involves both sides selecting their own appraiser, who will then work together to determine a fair value. If they reach an impasse, the appraisers can appoint an impartial umpire to help resolve the disagreement.

This clause is crucial because it provides a structured method for both parties to come to a more precise resolution without resorting to litigation, thereby ensuring that both the insured and the insurer have a clear, mutual understanding regarding the valuation of the property involved in the claim.

Get further explanation with Examzify DeepDiveBeta

To determine premium rates

To estimate replacement costs

Next Question

Report this question

Download Los Angeles Claims Adjuster Property and Causality Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy