Practice Test Geeks(CAIA) Certified Automotive Insurance Adjuster Practice Test
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Regulatory Compliance and Ethics Flashcards

7 cards from real CAIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance and Ethics flashcards as text

  1. A claimant requests a copy of their claim file. Under most state regulations, what is the adjuster's obligation?

    Answer: Provide access to non-privileged portions of the file

    Claimants generally have a right to non-privileged file materials, while attorney work product and investigative notes may be protected.

  2. Which of the following is an example of misrepresentation by an insurance adjuster?

    Answer: Misstating the amount of coverage available to induce a quick settlement

    Misstating coverage limits to pressure a claimant into settling is misrepresentation, a violation of UCSPA and ethics codes.

  3. Under typical state continuing education (CE) requirements, what happens if an adjuster fails to meet CE hours before license renewal?

    Answer: The license may be suspended or non-renewed

    Failure to complete CE hours before the renewal deadline typically results in license suspension or denial of renewal.

  4. What is the primary purpose of a reservation of rights letter?

    Answer: To notify the insured that coverage is being investigated and may be limited or denied

    A reservation of rights letter preserves the insurer's right to deny or limit coverage while the investigation continues.

  5. An adjuster accepts a gift from a body shop owner who regularly receives referrals. This most directly violates which ethical principle?

    Answer: Impartiality and freedom from conflicts of interest

    Accepting gifts from vendors who benefit from referrals compromises the adjuster's impartiality and constitutes a conflict of interest.

  6. Which federal law requires insurers and adjusters to protect non-public personal information of policyholders?

    Answer: Gramm-Leach-Bliley Act (GLBA)

    The Gramm-Leach-Bliley Act requires financial institutions, including insurers, to safeguard customers' non-public personal information.

  7. A claimant threatens to file a bad faith lawsuit if the adjuster does not immediately pay their disputed claim. What is the appropriate response?

    Answer: Continue a thorough investigation while documenting all actions taken

    The proper response is to maintain a documented, thorough investigation process regardless of litigation threats.