Which of the following is true about a competitive market analysis?

While a CMA may indirectly influence insurance decisions by providing an overview of property values, its primary function is not for insurance purposes. Instead, it focuses on assessing property value relative to the market for buying and selling, which is distinct from the needs of insurance assessments that often require specific criteria and valuations.

CMA is not specifically designed to establish depreciable value, which typically relates to tax accounting and financial reporting rather than real estate market analysis. Depreciable value is determined through different methods that consider factors like purchase price, useful life, and residual value, making it a separate process from a CMA.

A CMA may take local tax assessments into account, but it is primarily based on recent sales of comparable properties and market trends rather than tax records. These assessments can vary significantly and do not always reflect current market conditions, which are essential for an accurate competitive market analysis.