Which term describes a total loss of a motor vehicle or mobile home?

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Prepare for the Florida Claims Adjuster (6-20) Test. Use flashcards and multiple choice questions, with hints and explanations for each question. Ace your exam!

Multiple Choice

Which term describes a total loss of a motor vehicle or mobile home?

Explanation:
Salvage is the term used when a motor vehicle or mobile home is declared a total loss by an insurer. When the cost to repair exceeds the value or the vehicle is otherwise not economically repairable, the insurer pays the claim and takes ownership, issuing a salvage title. This describes the status of the property after the loss and is what is meant by a total loss in this context. Junk, domestic insurer, and fiduciary agent refer to other concepts: junk is not the formal term for a total loss, the domestic insurer is the insurer itself, and a fiduciary agent is a person or entity handling funds, not the loss status.

Salvage is the term used when a motor vehicle or mobile home is declared a total loss by an insurer. When the cost to repair exceeds the value or the vehicle is otherwise not economically repairable, the insurer pays the claim and takes ownership, issuing a salvage title. This describes the status of the property after the loss and is what is meant by a total loss in this context. Junk, domestic insurer, and fiduciary agent refer to other concepts: junk is not the formal term for a total loss, the domestic insurer is the insurer itself, and a fiduciary agent is a person or entity handling funds, not the loss status.

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