CALA Auto & Vehicle Claims Flashcards
6 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CALA Auto & Vehicle Claims flashcards as text
When determining total loss on a vehicle claim, which valuation method is most commonly used by US insurers?
Answer: Actual Cash Value (ACV)
Actual Cash Value, which accounts for depreciation, is the standard valuation method used in most US auto total-loss determinations.
Under a standard personal auto policy, which coverage pays for damage to the insured's own vehicle caused by a collision?
Answer: Collision coverage
Collision coverage applies when the insured's vehicle sustains damage resulting from a collision with another object or vehicle.
A vehicle's diminished value claim arises from which of the following circumstances?
Answer: The vehicle's market value decreases after repair due to its accident history
Diminished value refers to the reduction in a vehicle's market worth that persists even after quality repairs due to its accident history.
Which document is the primary source an adjuster uses to verify a vehicle's ownership during an auto claim?
Answer: Certificate of title
The certificate of title is the legal document that establishes ownership of a vehicle in the United States.
When adjusting an auto liability claim, what is the adjuster's first step after confirming coverage?
Answer: Investigate the facts of loss to determine liability
After confirming coverage exists, the adjuster must investigate the facts to establish which party bears liability for the accident.
Which type of auto coverage pays the insured's medical expenses regardless of fault?
Answer: Medical Payments (MedPay) coverage
Medical Payments coverage reimburses the insured and passengers for medical expenses arising from an auto accident without regard to fault.