CALA CALA Auto & Vehicle Claims

Question 1

When determining total loss on a vehicle claim, which valuation method is most commonly used by US insurers?

Accepted Answer

Actual Cash Value (ACV)

Answer

Actual Cash Value, which accounts for depreciation, is the standard valuation method used in most US auto total-loss determinations.

Question 2

Under a standard personal auto policy, which coverage pays for damage to the insured's own vehicle caused by a collision?

Accepted Answer

Collision coverage

Answer

Collision coverage applies when the insured's vehicle sustains damage resulting from a collision with another object or vehicle.

Question 3

A vehicle's diminished value claim arises from which of the following circumstances?

Accepted Answer

The vehicle's market value decreases after repair due to its accident history

Answer

Diminished value refers to the reduction in a vehicle's market worth that persists even after quality repairs due to its accident history.

Question 4

Which document is the primary source an adjuster uses to verify a vehicle's ownership during an auto claim?

Accepted Answer

Certificate of title

Answer

The certificate of title is the legal document that establishes ownership of a vehicle in the United States.

Question 5

When adjusting an auto liability claim, what is the adjuster's first step after confirming coverage?

Accepted Answer

Investigate the facts of loss to determine liability

Answer

After confirming coverage exists, the adjuster must investigate the facts to establish which party bears liability for the accident.

(CALA) Certified All-Lines Adjuster Practice Test