{"id":522,"date":"2021-01-17T05:34:59","date_gmt":"2021-01-16T18:01:23","guid":{"rendered":"https:\/\/exampracticetests.com\/ISC\/SSCP\/systems-security-certified-practitioner-sscp-question0514\/"},"modified":"2021-01-17T05:44:21","modified_gmt":"2021-01-17T05:44:21","slug":"systems-security-certified-practitioner-sscp-question0514","status":"publish","type":"post","link":"https:\/\/exampracticetests.com\/ISC\/SSCP\/systems-security-certified-practitioner-sscp-question0514\/","title":{"rendered":"Systems Security Certified Practitioner &#8211; SSCP &#8211; Question0514"},"content":{"rendered":"<div class=\"question\">If your property Insurance has Replacement Cost Valuation (RCV) clause your damaged property will be compensated: <br \/><strong><br \/>A.<\/strong> Based on the value of item on the date of loss <br \/><strong>B.<\/strong> Based on new, comparable, or identical item for old regardless of condition of lost item <br \/><strong>C.<\/strong> Based on value of item one month before the loss <br \/><strong>D.<\/strong> Based on the value listed on the Ebay auction web site<\/div>\n<p><\/p>\n<style> .hidden-div{ display:none } <\/style>\n<p>\t\t\t\t\t\t\t<button onclick=\"getElementById('hidden-div').style.display = 'block'\"> Show Answer <\/button> <button onclick=\"getElementById('hidden-div').style.display = 'none'\">Hide Answer<\/button><\/p>\n<div class=\"hidden-div\" id=\"hidden-div\"><span style=\"\"><\/p>\n<div class=\"answer\">Correct Answer: <strong>B<\/strong><\/div>\n<p><strong>Explanation:<\/strong> <\/p>\n<div class=\"explanation\">\nRCV is the maximum amount your insurance company will pay you for damage to covered property before deducting for depreciation. The RCV payment is based on the current cost to replace your property with new, identical or comparable property.<br \/>\nThe other choices were detractor:<br \/>\nApplication and definition of the insurance terms Replacement Cost Value (RCV), Actual Cash Value (ACV) and depreciation can be confusing. It\u2019s important that you understand the terms to help settle your claim fairly.<br \/>\nAn easy way to understand RCV and ACV is to think in terms of \u201cnew\u201d and \u201cused.\u201d Replacement cost is the item&#8217;s current price, new. \u201cWhat will it cost when I replace it?\u201d Actual cash is the item&#8217;s used price, old. \u201cHow much money is it worth since I used it for five years?\u201d<br \/>\nHold Back Most policies only pay the Actual Cash Value upfront, and then they pay you the \u201cheld back\u201d depreciation after you incur the expense to repair or replace your personal property items.<br \/>\nNOTE: You must remember to send documentation to the insurance company proving you\u2019ve incurred the additional expense you will be reimbursed.<br \/>\nActual Cash Value (ACV) ACV is the amount your insurance company will pay you for damage to covered property after deducting for depreciation. ACV is the replacement cost of a new item, minus depreciation. If stated as a simple equation, ACV could be defined as follows: ACV=RCV-Depreciation<br \/>\nUnfortunately, ACV is not always as easy to agree upon as a simple math equation. The ACV can also be calculated as the price a willing buyer would pay for your used item.<br \/>\nDepreciation Depreciation (sometimes called \u201chold back\u201d) is defined as the \u201closs in value from all causes, including age, and wear and tear.\u201d Although the definition seems to be clear, in our experience, value\u201d as a real-world application is clearly subjective and varies widely. We have seen the same adjuster apply NO depreciation (100 percent value) on one claim and 40 percent depreciation almost half value) on an almost identical claim.<br \/>\nThis shows that the process of applying depreciation is subjective and clearly negotiable.<br \/>\nExcessive Depreciation When the insurance company depreciates more than they should, it is called \u201cExcessive depreciation.\u201d Although not ethical, it is very common. Note any items that have excessive depreciation and write a letter to your insurance company.<br \/>\nReferences: <a href=\"http:\/\/carehelp.org\/downloads\/category\/1-insurance-handouts.html?download=17%3Ahandout08-rcv-and-acv\" title=\"External link\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/carehelp.org\/downloads\/category\/1-insurance-handouts.html?do&#8230;<\/a> and <a href=\"http:\/\/www.schirickinsurance.com\/resources\/value2005.pdf\" title=\"External link\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.schirickinsurance.com\/resources\/value2005.pdf<\/a> and TIPTON, Harold F. &#038; KRAUSE, MICKI, information Security Management Handbook, 4th Edition, Volume 1 Property Insurance overview, Page 587.<\/div>\n<p><\/strong><\/span> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>If your property Insurance has Replacement Cost Valuation (RCV) clause your damaged property will be compensated: A. Based on the value of item on the date of loss B. Based on new, comparable, or identical item for old regardless of condition of lost item C. Based on value of item one month before the loss [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[1078,517,3],"class_list":["post-522","post","type-post","status-publish","format-standard","hentry","category-systems-security-certified-practitioner-sscp","tag-choices","tag-question-0514","tag-systems-security-certified-practitioner-sscp"],"_links":{"self":[{"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/posts\/522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/comments?post=522"}],"version-history":[{"count":1,"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/posts\/522\/revisions"}],"predecessor-version":[{"id":1598,"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/posts\/522\/revisions\/1598"}],"wp:attachment":[{"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/media?parent=522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/categories?post=522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exampracticetests.com\/ISC\/SSCP\/wp-json\/wp\/v2\/tags?post=522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}