CALA Auto & Vehicle Claims Flashcards

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

Answer: Comprehensive coverage

Comprehensive coverage applies to theft and non-collision losses, including damage discovered when a stolen vehicle is recovered.

What is a subrogation right in the context of an auto claim?

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.

In a comparative negligence state, how does shared fault affect an auto liability claim payout?

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.

Which form is typically used in the US to report a motor vehicle accident to the state's DMV?

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.

Gap insurance is designed to cover which specific situation in an auto claim?

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.

When inspecting a vehicle for damage, an adjuster should primarily rely on which resource to price parts and labor?

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.