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. When adjusting a total loss in a state with a title-washing law, the adjuster must ensure: → The salvage vehicle receives a branded title indicating its total loss history
2. When settling a claim involving a minor, what additional step is generally required? → Court approval of the settlement is typically required
3. Which federal law governs the privacy of personal information shared by insureds during the claims process? → Gramm-Leach-Bliley Act (GLBA)
4. When photographing a damaged vehicle during investigation, which sequence best supports the investigation? → Overview shots of the scene, then mid-range vehicle photos, then close-up damage details
5. What does a proper damage assessment include in terms of interior examination? → Checking the upholstery, dashboard, and components affected by impact
6. What is the function of a vehicle's 'catalytic converter'? → To convert harmful exhaust pollutants into less harmful gases through chemical reactions
7. Which analytical technique uses data mining to score individual claims by likelihood of fraud based on historical patterns? → Predictive modeling / fraud scoring
8. Under the PAP (Personal Auto Policy), which of the following persons is typically considered an 'insured' for liability coverage? → A family member residing in the household
9. When calculating diminished value after a repair, which method considers the reduction in marketability due to the vehicle's accident history? → Inherent diminished value
10. In estimating software, what is the purpose of the 'included operations' list for a specific repair procedure? → It identifies labor times already bundled into the listed operation
11. An insured disputes the insurer's ACV calculation. Which option does NOT typically represent a valid dispute resolution mechanism? → Demanding the insurer use a specific salvage yard
12. Which document formally transfers ownership of a total-loss vehicle to the insurer? → Title assignment or certificate of title
13. A settlement involving a Medicare beneficiary may require a Medicare Set-Aside (MSA) arrangement primarily to: → Protect Medicare's interests by allocating funds for future injury-related medical costs
14. Which document must an insured typically sign to allow the insurer to pursue subrogation? → Subrogation receipt or loan receipt agreement
15. A vehicle's VIN reveals it has a factory sunroof. How should this affect the estimator's approach to replacing the headliner? → The sunroof's presence may require additional R&I labor for the sunroof mechanism
16. What is the primary purpose of risk management in auto claims? → To prevent losses and handle claims efficiently
17. What is 'rate evasion' in automotive insurance fraud? → Misrepresenting the vehicle's garaging location to obtain lower rates
18. What is the significance of the 'condition report' in total loss valuation? → It documents pre-loss condition factors that justify positive or negative ACV adjustments
19. What is the purpose of an adjuster maintaining detailed, contemporaneous claim notes? → To document all actions, communications, and decisions transparently and accurately
20. How can insurance companies ensure effective risk management? → By conducting audits and using fraud detection technology
21. What does the term 'sliding' mean in the context of insurance fraud? → Adding unauthorized coverages to a policy without the insured's knowledge
22. 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.
23. When does an insurer's subrogation right typically arise? → After the insurer has paid the insured's claim
24. When selecting comparable vehicles for ACV calculation, which characteristic is most critical to match? → Year, make, model, and similar condition/mileage
25. A vehicle sustains front-end collision damage. Which hidden component failure is most critical to identify before finalizing an estimate? → Radiator support misalignment
26. A claimant's 2019 pickup truck has a cracked bed liner. The adjuster determines the liner was cracked before the current loss. How should this be handled? → Document it as pre-existing damage and exclude it from the current claim
27. Which type of lien search is most important when settling a total loss claim on a vehicle? → DMV title and lien search
28. What does the principle of 'utmost good faith' (uberrimae fidei) require of an automotive loss adjuster? → Acting honestly, disclosing all material facts, and dealing fairly with all parties
29. Which of the following best describes 'actual cash value' (ACV) in automotive loss adjustment? → Replacement cost minus depreciation, reflecting current market value
30. In auto subrogation, what does 'first-party recovery' refer to? → Recovery from the insured's own insurer under collision or comprehensive coverage