CALA Adjuster Professional Ethics 5

Question 1

An adjuster is handling a total loss claim and realizes the actual cash value they calculated is higher than the company's reserve. The adjuster should:

Accepted Answer

Report the accurate ACV calculation and update the reserve accordingly

Answer

Adjusters must report accurate valuations regardless of reserve implications; manipulating calculations to match reserves is fraudulent.

Question 2

A claimant who is elderly and appears confused is attempting to negotiate their own settlement. Ethically, the adjuster must:

Accepted Answer

Ensure the claimant understands the process and consider recommending they seek assistance from a trusted family member or advisor

Answer

Adjusters must ensure vulnerable claimants genuinely understand the claims process and their options without exploiting cognitive limitations.

Question 3

Which of the following constitutes 'bad faith' conduct by an automotive loss adjuster?

Accepted Answer

Knowingly misrepresenting the policy's coverage to avoid a valid payment

Answer

Intentionally misrepresenting policy terms to avoid a valid payment obligation is a textbook example of insurance bad faith.

Question 4

An adjuster who is also a licensed contractor provides unsolicited repair advice to a claimant and then recommends specific contractors. This situation raises concerns about:

Accepted Answer

Conflicts of interest and potential steering violations

Answer

Using professional expertise outside one's adjuster role to recommend specific contractors may create undisclosed financial conflicts and steering issues.

Question 5

When an insured and a third-party claimant make competing claims about how an accident occurred, the adjuster's ethical responsibility is to:

Accepted Answer

Conduct an impartial investigation and base findings solely on evidence

Answer

Adjusters must evaluate all claims impartially based on evidence, with no inherent bias toward either the insured or third-party claimants.

(CALA) Certified Automotive Loss Adjuster Practice Test

(CALA) Certified Automotive Loss Adjuster Practice Test

CALA Adjuster Professional Ethics 5