CISR Commercial Casualty II Practice Exam 2026 – Complete Study Resource

The thing being tested is when the appraisal mechanism kicks in to settle a physical-damage loss under the Loss BAP Condition. This provision is invoked only after there’s a disagreement over how much the loss is worth. It isn’t required for every loss, nor is it limited to only total losses or only theft. When there’s a dispute over the dollar amount, the insured and insurer appoint appraisers who work to agree on a value; if they can’t reach an agreement, an umpire helps resolve the remaining difference. The goal is to determine a fair loss amount without resorting to litigation, with the resulting figure binding for settlement.