Adjuster Professional Ethics Flashcards
7 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 7 Adjuster Professional Ethics flashcards as text
A claimant asks an automotive loss adjuster for legal advice about whether to accept the settlement offer. The adjuster should:
Answer: Recommend the claimant consult a licensed attorney for legal guidance
Adjusters are not licensed attorneys and must refrain from providing legal advice, directing claimants to appropriate legal resources instead.
Which scenario represents an improper steering practice by an automotive loss adjuster?
Answer: Telling the insured they must use a specific shop or the claim will be denied
Forcing insured parties to use specific repair facilities by threatening claim denial constitutes improper steering under most state regulations.
When an adjuster has a financial interest in a repair shop that they frequently recommend to claimants, this represents:
Answer: A conflict of interest that must be disclosed and likely resolved by divestiture or reassignment
A financial interest in a recommended vendor creates an undisclosed conflict of interest that compromises the adjuster's impartiality.
How should an adjuster respond when they discover a claimant has submitted exaggerated repair invoices?
Answer: Document the discrepancy, investigate thoroughly, and report suspected fraud per company protocol
Suspected fraud must be investigated thoroughly and documented before reporting through proper channels, not acted upon impulsively.
An adjuster who routinely denies valid claims to improve their personal performance metrics is violating which ethical principle?
Answer: Impartiality and fair dealing
Denying valid claims for personal gain rather than merit violates the adjuster's duty of impartiality and fair dealing toward claimants.
What is the ethical obligation of an automotive loss adjuster when a claimant is unrepresented and unaware of their policy benefits?
Answer: Proactively inform the claimant of all applicable coverages that may benefit them
Adjusters have an affirmative duty to explain applicable coverages to unrepresented claimants who may not know what they are entitled to.
An adjuster is offered a higher-paying role at a body shop with which they currently negotiate repair costs. Accepting this position:
Answer: Requires immediate disclosure to the employer and may necessitate recusal from dealings with that shop
A job offer from a vendor creates a conflict of interest requiring immediate disclosure and likely recusal from any business dealings with that party.