300 - Claims Exercise (from the text) Name: 1. What are the three steps the adjuster must take upon receipt of a new claim? a. b. C. 2. Define the following methods used to determine the value of a property loss: a. Replacement cost b. Actual cash value c. Agreed value d. Functional replacement cost (use outside sources for this, many examples are online) 3. What is a bad faith claim?(a) Explain the consequences faced by an insurance company if they are accused of acting in bad faith. (b) a. b. 4. Explain why liability claims are more difficult to adjust than property claims. 5. Explain three procedures which insurance companies may modify when handling catastrophic losses. a. b. C