CAIA Cheat Sheet 2026

The 30 highest-yield CAIA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. If an insured decides to retain their vehicle after it has been declared a total loss, how is the settlement amount typically affected? → The salvage value of the vehicle is deducted from the ACV settlement.
2. What is 'soft fraud' in the context of auto insurance claims? → Exaggerating a legitimate claim to recover more money
3. Which tool is commonly used for vehicle damage estimation? → A computerized estimating system
4. When investigating potential fraud, an adjuster should obtain a recorded statement primarily to: → Lock in the claimant's version of events for comparison against evidence
5. What is the primary purpose of an Examination Under Oath (EUO) in an auto insurance fraud investigation? → To compel the insured to provide sworn testimony about the claim under oath
6. Which database is commonly used by U.S. insurance adjusters to detect prior claim histories and potential fraud patterns? → ISO ClaimSearch
7. Which of the following is most essential for an insurer to successfully pursue a subrogation claim? → Clear and convincing evidence establishing the other party's liability.
8. After an insurer pays a total loss claim and takes possession of the vehicle, what is the insurer's primary objective with the resulting salvage? → To mitigate its financial loss by selling the vehicle at a salvage auction.
9. Under a standard auto insurance policy, rental reimbursement coverage is triggered when: → The insured's vehicle is disabled due to a covered loss
10. If an insured has stacked UM/UIM coverage on three vehicles each with $50,000 limits, what is the maximum available UM/UIM coverage in a stacking state? → $150,000
11. What is the purpose of vehicle damage assessment in insurance? → To estimate the cost of repairs
12. Why is it important to assess the structural integrity of a vehicle after an accident? → To assess if the vehicle is safe to repair
13. Which of the following is considered 'hard fraud' in auto insurance? → Reporting a stolen vehicle that was actually sold
14. When evaluating a bodily injury claim, which of the following are considered 'special damages'? → Medical bills and lost wages
15. An adjuster is determining the Actual Cash Value (ACV) for a total loss vehicle. Which of the following is the PRIMARY basis for this valuation? → The listed prices of comparable vehicles for sale in the claimant's local market.
16. What ethical guidelines should an insurance adjuster follow when handling claims? → To follow ethical guidelines ensuring fairness and compliance
17. What role do labor costs play in vehicle damage estimation? → Labor costs must be calculated as part of the total estimate
18. What is the primary purpose of the 'consent to settle' clause in a UIM policy? → To protect the UIM insurer's potential subrogation rights against the at-fault party
19. What is the significance of calculating the total loss of a vehicle? → It helps determine whether repair costs justify the vehicle’s value
20. Which of the following losses is typically excluded from coverage under the Physical Damage (Collision and Comprehensive) section of a personal auto policy? → Damage from normal wear and tear and mechanical breakdown.
21. What type of auto insurance fraud involves a policyholder intentionally causing damage to their own vehicle to collect a claim? → Owner give-up fraud
22. What is the primary purpose of the subrogation clause in an auto insurance policy? → To allow the insurer to recover claim payments from the at-fault party.
23. The term 'feather, prime, and block' in an auto body repair estimate refers to a step in which process? → Preparing the surface for painting.
24. State insurance fraud statutes in the U.S. typically classify insurance fraud as: → A criminal offense that may be a felony depending on the dollar amount
25. In California, which of the following actions is required to finalize the settlement of a significant bodily injury claim on behalf of a minor? → The settlement must be approved by a court in a process known as a 'minor's compromise.'
26. An adjuster notices the claimant's medical bills were submitted from a clinic that opened one week after the reported accident. This is most indicative of: → Possible medical billing fraud
27. How does understanding the vehicle's pre-accident condition help in damage assessment? → It ensures that all damages are accounted for
28. Which of the following is a typical requirement before an insured settles with a third-party liability insurer for less than the full claim value in a UIM case? → The insured must notify and obtain consent from their own UIM insurer
29. A claimant submits a claim for a vehicle fire. Which of the following findings would most strongly suggest arson fraud? → The vehicle had recent mechanical problems and the owner was behind on payments
30. Which method is most commonly used by insurers to calculate diminished value? → The 17c formula based on NADA values