Casualty Actuarial Society (CAS) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Casualty Actuarial Society Exam with our quiz. Use flashcards and multiple-choice questions, each accompanied by hints and explanations. Ace the exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is a factor Jane can use to estimate a commercial property's value?

Number of employees on-site
Age of the structure
Distance from fire services
Location within the city

The correct answer is: Age of the structure

When estimating the value of a commercial property, the age of the structure is a significant factor because it can impact both the physical condition and the potential functionality of the building. Older structures may require more maintenance, have outdated systems (such as electrical, plumbing, or HVAC), and may not meet current building codes or standards. This can reduce the property's market value compared to newer constructions that are likely to have up-to-date facilities and lower anticipated maintenance costs. In addition, the age of the property can influence insurance premiums, mortgage terms, and buyer interest, all of which are critical elements in the property valuation process. While other factors like the number of employees on-site, distance from fire services, and location within the city may also play important roles in assessing a property's overall value, the direct contribution of age to observable wear and adaptability is often more immediately quantifiable and impactful in valuation assessments.