Florida Insurance Claims Adjuster License Practice Exam

What does Salvage typically refer to in terms of motor vehicles?

1. Vehicles used for commercial purposes

2. Vehicles that are considered a total loss

3. Newly manufactured vehicles

4. Vehicles covered by comprehensive health services

The correct answer is: Vehicles that are considered a total loss

Salvage typically refers to motor vehicles that have been declared a total loss by an insurance company due to damage from accidents, natural disasters, or other incidents. This means that the cost of repairing the vehicle exceeds its determined value. Therefore, options A, C, and D are incorrect because they do not pertain to the definition of salvage vehicles. Option A refers to vehicles used for commercial purposes, which can be in good condition and have not been declared a total loss. Option C refers to newly manufactured vehicles, which have not been previously owned and have not been declared a total loss. Option D refers to vehicles covered by comprehensive health services, which is not related to the condition or status of the vehicle itself.