CALA Cheat Sheet 2026

The 30 highest-yield CALA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which federal law governs the privacy of personal information shared by insureds during the claims process? → Gramm-Leach-Bliley Act (GLBA)
2. What does a proper damage assessment include in terms of interior examination? → Checking the upholstery, dashboard, and components affected by impact
3. Which document must an insured typically sign to allow the insurer to pursue subrogation? → Subrogation receipt or loan receipt agreement
4. What is the primary purpose of risk management in auto claims? → To prevent losses and handle claims efficiently
5. How can insurance companies ensure effective risk management? → By conducting audits and using fraud detection technology
6. During the initial phase of a claims investigation, what is the primary purpose of obtaining a recorded statement from the insured? → To gather a detailed, first-hand account of the incident to assess coverage and liability.
7. When does an insurer's subrogation right typically arise? → After the insurer has paid the insured's claim
8. In auto subrogation, what does 'first-party recovery' refer to? → Recovery from the insured's own insurer under collision or comprehensive coverage
9. When explaining a coverage denial to an insured, what must the written denial letter include? → The specific policy language, coverage exclusion, and factual basis for the denial
10. Why is it important to estimate labor costs in the damage assessment? → To estimate the repair time and cost
11. What should insurers do to remain compliant with anti-fraud laws? → Report suspicious claims and verify data
12. Which of the following sources is generally considered the LEAST reliable for an adjuster to use when establishing a vehicle's ACV? → Online advertisements for similar vehicles posted by private sellers.
13. What is the primary function of a MacPherson strut in a modern vehicle's suspension system? → To serve as both a shock-absorbing damper and a structural member of the suspension.
14. Why is it important for insurers to stay updated with regulatory changes? → To avoid legal repercussions and stay compliant
15. Which of the following is a key component of the claims investigation process that primarily focuses on determining the cause and fault of an accident? → Liability investigation
16. What is the importance of assessing the vehicle's undercarriage? → To identify any hidden damage to critical components
17. Why is it important to maintain accurate claims records? → To ensure compliance and proper handling
18. What is the importance of accurate claims documentation in fraud prevention? → It helps identify fraudulent claims
19. Why is transparency important in insurance claims processing? → It builds trust and prevents fraud
20. What does a 'per day / per occurrence' rental reimbursement limit mean? → The insurer pays a fixed daily rate up to a maximum total amount per claim
21. A supplement is written during the vehicle repair process PRIMARILY when: → Hidden damage is discovered after the initial estimate and vehicle disassembly.
22. Which of the following accurately describes a typical Front-Wheel Drive (FWD) vehicle configuration? → A transverse-mounted engine where the engine and transaxle power the front wheels.
23. What is a key factor in identifying potential fraud in claims handling? → Patterns of inconsistencies or false information
24. What is the first step in processing an auto insurance claim? → Collect information from the insured party
25. What role does insurance play in the damage estimation process? → Insurance provides a framework for estimating repair costs
26. How can fraud detection be improved in the claims process? → By using data analysis and fraud detection software
27. What is the role of a claims adjuster? → To investigate and evaluate the claim
28. An insured reports their vehicle stolen. After taking the initial report, what is a crucial next step for the claims adjuster in the investigation process? → Verify that the insured has filed a police report and obtain a copy.
29. What role does fraud detection play in claims processing? → To ensure claims are legitimate and reduce losses due to fraud
30. An adjuster communicates a settlement offer to a represented claimant. Which action is appropriate? → Direct all communications to the claimant's attorney