CALA CALA Auto & Vehicle Claims 2

Question 1

An insured's vehicle is stolen and later recovered with significant interior damage. Which auto coverage applies?

Accepted Answer

Comprehensive coverage

Answer

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?

Accepted Answer

The insurer's right to recover from the at-fault party after paying its insured

Answer

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?

Accepted Answer

The claimant's recovery is reduced by their percentage of fault

Answer

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?

Accepted Answer

SR-1 or equivalent state accident report form

Answer

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?

Accepted Answer

The difference between the vehicle's ACV and the outstanding loan balance

Answer

Gap insurance covers the shortfall between what the insurer pays (ACV) and what the insured still owes on their auto loan or lease.

(CALA) Certified All-Lines Adjuster Practice Test

(CALA) Certified All-Lines Adjuster Practice Test

CALA CALA Auto & Vehicle Claims 2