CALA CALA Auto & Vehicle Claims 2 — Questions and Answers
Question 1: An insured's vehicle is stolen and later recovered with significant interior damage. Which auto coverage applies?
- Comprehensive coverage (Correct answer)
- Collision coverage
- Uninsured motorist property damage
- Gap coverage
Correct answer: Comprehensive coverage
Comprehensive coverage applies to theft and non-collision losses, including damage discovered when a stolen vehicle is recovered.
Question 2: What is a subrogation right in the context of an auto claim?
- The insurer's right to recover from the at-fault party after paying its insured (Correct answer)
- The claimant's right to sue the insurer directly
- The insured's right to choose any repair shop
- The adjuster's right to deny coverage
Correct answer: The insurer's right to recover from the at-fault party after paying its insured
Subrogation allows the insurer to step into the insured's shoes and pursue recovery from the negligent third party after indemnifying its insured.
Question 3: In a comparative negligence state, how does shared fault affect an auto liability claim payout?
- The claimant's recovery is reduced by their percentage of fault (Correct answer)
- The claimant receives nothing if they are any percentage at fault
- The at-fault driver pays double damages
- Fault percentages have no impact on the payout
Correct answer: The claimant's recovery is reduced by their percentage of fault
Under comparative negligence, a claimant's compensation is reduced proportionally by their own percentage of fault in causing the accident.
Question 4: Which form is typically used in the US to report a motor vehicle accident to the state's DMV?
- SR-1 or equivalent state accident report form (Correct answer)
- ACORD 125 form
- FS-5A form
- FNOL incident form
Correct answer: SR-1 or equivalent state accident report form
Most US states require parties to file an SR-1 (or equivalent state form) with the DMV when an accident exceeds a property damage threshold or results in injury.
Question 5: Gap insurance is designed to cover which specific situation in an auto claim?
- The difference between the vehicle's ACV and the outstanding loan balance (Correct answer)
- Rental car expenses after a total loss
- Medical bills not covered by PIP
- Damage to a vehicle with no collision coverage
Correct answer: The difference between the vehicle's ACV and the outstanding loan balance
Gap insurance covers the shortfall between what the insurer pays (ACV) and what the insured still owes on their auto loan or lease.
Question 6: When inspecting a vehicle for damage, an adjuster should primarily rely on which resource to price parts and labor?
- Computerized estimating software such as Mitchell or CCC ONE (Correct answer)
- The repair shop's handwritten quote exclusively
- The insured's personal estimate
- Manufacturer MSRP sticker price
Correct answer: Computerized estimating software such as Mitchell or CCC ONE
Industry-standard estimating platforms like Mitchell or CCC ONE provide standardized parts pricing and labor times accepted across the US insurance industry.
CALA CALA Auto & Vehicle Claims 2
An insured's vehicle is stolen and later recovered with significant interior damage.
Which auto coverage applies?