CALA Adjuster Professional Ethics 2

Question 1

An automotive loss adjuster discovers that a claimant is also the adjuster's neighbor. What is the most appropriate course of action?

Accepted Answer

Disclose the relationship to a supervisor and request reassignment

Answer

Proceed normally since personal relationships don't affect professional judgment

Answer

Handle the claim but apply stricter scrutiny to avoid favoritism

Answer

Deny the claim outright to avoid any appearance of bias

Question 2

Which action by an automotive loss adjuster would constitute a breach of confidentiality?

Accepted Answer

Discussing a high-profile claimant's settlement amount at a social gathering

Answer

Sharing claim details with the insured's attorney upon written authorization

Answer

Providing claim data to a reinsurer as required by the policy

Answer

Releasing records to law enforcement under a valid subpoena

Question 3

A body shop owner offers an adjuster tickets to a sporting event after the adjuster approved a large repair estimate. The adjuster should:

Accepted Answer

Decline and report the offer to their supervisor or compliance department

Answer

Accept since the claim is already closed and no future conflict exists

Answer

Accept only if the tickets are valued under $25

Answer

Accept but disclose it on the next annual ethics form

Question 4

What does the principle of 'utmost good faith' (uberrimae fidei) require of an automotive loss adjuster?

Accepted Answer

Acting honestly, disclosing all material facts, and dealing fairly with all parties

Answer

Minimizing payouts to protect the insurer's financial interests

Answer

Prioritizing the insured's interests above the insurer's at all times

Answer

Verifying every claimant statement through independent investigation regardless of cost

Question 5

An adjuster is pressured by a supervisor to close claims quickly by offering low settlements before claimants consult attorneys. This practice is:

Accepted Answer

Unethical and may violate unfair claims settlement practice laws

Answer

Acceptable if claimants sign a release form

Answer

Standard industry practice to manage claim costs

Answer

Only problematic if the claimant later files a complaint

Question 6

Which of the following best describes an adjuster's duty when they lack expertise to evaluate a specialized automotive damage claim?

Accepted Answer

Consult a qualified specialist or appraiser before issuing a determination

Answer

Estimate the damage using general knowledge and close the claim

Answer

Deny the claim pending the claimant providing their own expert assessment

Answer

Refer the claim to a competitor adjuster without informing the insurer

Question 7

An adjuster who willfully misrepresents facts in a claims report to benefit the insurer is subject to:

Accepted Answer

Disciplinary action, license revocation, and potential criminal liability

Answer

Only an internal reprimand if the claim amount is under $1,000

Answer

Mandatory ethics training with no further consequences

Answer

Civil liability only, as fraud requires criminal intent beyond an adjuster's role