CALA Adjuster Professional Ethics 3

Question 1

A claimant asks an automotive loss adjuster for legal advice about whether to accept the settlement offer. The adjuster should:

Accepted Answer

Recommend the claimant consult a licensed attorney for legal guidance

Answer

Adjusters are not licensed attorneys and must refrain from providing legal advice, directing claimants to appropriate legal resources instead.

Question 2

Which scenario represents an improper steering practice by an automotive loss adjuster?

Accepted Answer

Telling the insured they must use a specific shop or the claim will be denied

Answer

Forcing insured parties to use specific repair facilities by threatening claim denial constitutes improper steering under most state regulations.

Question 3

When an adjuster has a financial interest in a repair shop that they frequently recommend to claimants, this represents:

Accepted Answer

A conflict of interest that must be disclosed and likely resolved by divestiture or reassignment

Answer

A financial interest in a recommended vendor creates an undisclosed conflict of interest that compromises the adjuster's impartiality.

Question 4

How should an adjuster respond when they discover a claimant has submitted exaggerated repair invoices?

Accepted Answer

Document the discrepancy, investigate thoroughly, and report suspected fraud per company protocol

Answer

Suspected fraud must be investigated thoroughly and documented before reporting through proper channels, not acted upon impulsively.

Question 5

An adjuster who routinely denies valid claims to improve their personal performance metrics is violating which ethical principle?

Accepted Answer

Impartiality and fair dealing

Answer

Denying valid claims for personal gain rather than merit violates the adjuster's duty of impartiality and fair dealing toward claimants.

(CALA) Certified Automotive Loss Adjuster Practice Test