CAIA Automotive Damage Assessment 5 — Questions and Answers
Question 1: Which database is most commonly used by U.S. auto insurers and adjusters to determine a vehicle's Actual Cash Value (ACV)?
- CARFAX vehicle history report
- CCC ONE, Mitchell, or Audatex valuation platforms (Correct answer)
- Kelly Blue Book retail listings only
- NADA dealer invoice prices
Correct answer: CCC ONE, Mitchell, or Audatex valuation platforms
CCC ONE, Mitchell (Market Valuation), and Audatex are the industry-standard platforms adjusters use to generate ACV reports based on comparable market sales.
Question 2: What is the purpose of a 'non-original equipment manufacturer' (non-OEM) parts disclosure in a repair estimate?
- To inform the insurer that the shop is using certified parts
- To notify the vehicle owner that aftermarket parts may be used, as required by many state laws (Correct answer)
- To document that the repair cost exceeds OEM part pricing
- To protect the shop from liability if aftermarket parts fail
Correct answer: To notify the vehicle owner that aftermarket parts may be used, as required by many state laws
Many states require insurers or shops to disclose in writing when non-OEM parts are specified in a repair estimate, giving the vehicle owner the opportunity to object.
Question 3: During a structural inspection, an adjuster identifies that the vehicle's strut tower has been pushed rearward. Which measurement system finding would confirm this?
- Increased camber angle on the affected wheel
- A longitudinal offset measurement that exceeds factory tolerance at the strut tower reference point (Correct answer)
- Paint cracking on the hood surface above the strut
- A change in the vehicle's ride height on the affected side
Correct answer: A longitudinal offset measurement that exceeds factory tolerance at the strut tower reference point
A longitudinal offset in the 3D measurement data at the strut tower reference point directly confirms the strut tower has moved from its factory position.
Question 4: A shop claims 3.5 hours of frame straightening time. The adjuster's estimating guide shows a standard time of 2.0 hours for the operation. What should the adjuster do?
- Pay the shop's requested time without question
- Negotiate or request documentation justifying the deviation from the guide time (Correct answer)
- Automatically deny the additional time as fraudulent
- Apply the guide time and refuse any supplement
Correct answer: Negotiate or request documentation justifying the deviation from the guide time
When a shop's time claim deviates from the guide, the adjuster should request documented justification for the variance before approving or denying the difference.
Question 5: A vehicle has damage to its ADAS (Advanced Driver Assistance Systems) radar module. After replacement, what is typically required before returning the vehicle to the owner?
- A wheel alignment only
- Calibration of the ADAS system to manufacturer specifications (Correct answer)
- A road test conducted by the insurer's representative
- Reprogramming of the vehicle's infotainment system
Correct answer: Calibration of the ADAS system to manufacturer specifications
ADAS components such as radar, camera, and lidar sensors must be calibrated after replacement or repositioning to ensure the safety systems function correctly.
Question 6: What is 'storage accrual' and why is it relevant in total loss claims?
- The accumulation of unpaid loan interest on a totaled vehicle
- Daily storage fees charged by a tow yard that can reduce the net settlement if not managed promptly (Correct answer)
- The depreciation applied to salvage vehicles stored before auction
- An administrative fee charged by the insurer for processing total loss paperwork
Correct answer: Daily storage fees charged by a tow yard that can reduce the net settlement if not managed promptly
When a total loss vehicle sits at a storage facility, daily fees accrue and are typically deducted from the settlement, making prompt resolution critical for both parties.
Question 7: An adjuster is writing an estimate for a vehicle where the damaged panel is adjacent to a panel painted with a tri-coat pearl finish. What additional refinishing consideration applies?
- Tri-coat pearl requires a longer drying time only, with no additional cost
- A third-stage pearl blending operation must be added due to the complexity of matching tri-coat finishes (Correct answer)
- The entire vehicle must be repainted to achieve a match
- Tri-coat finishes are treated identically to standard two-stage paint in estimates
Correct answer: A third-stage pearl blending operation must be added due to the complexity of matching tri-coat finishes
Tri-coat pearl finishes require a separate third-stage blend coat, which must be added as a line item in the estimate because standard two-stage refinish times do not account for this layer.
CAIA Automotive Damage Assessment 5
Which database is most commonly used by U.S. auto insurers and adjusters to determine a vehicle's Actual Cash Value (ACV)?