CALA Automotive Damage Assessment & Estimation 5 — Questions and Answers
Question 1: When preparing a total loss valuation, which approach uses recent sales of comparable vehicles in the local market to establish actual cash value?
- Replacement cost new method
- Comparable market sales (CMS) method (Correct answer)
- Book value averaging method
- Depreciation table method
Correct answer: Comparable market sales (CMS) method
The comparable market sales method establishes ACV by researching actual recent sales of similar vehicles in the same geographic market, reflecting true local market conditions.
Question 2: What term describes damage to components that are not directly struck but are damaged due to the force transmitted through the vehicle's structure?
- Secondary damage (Correct answer)
- Collateral damage
- Impact damage
- Structural fatigue
Correct answer: Secondary damage
Secondary damage refers to harm to components caused by the transfer of collision energy through the vehicle rather than by direct contact with the striking object.
Question 3: A vehicle owner claims their catalytic converter was stolen. Which documentation is most important for the adjuster to obtain to validate this claim?
- Fuel receipts from the week of the theft
- Police report filed at the time of the theft (Correct answer)
- Dealer service records from two years prior
- Tire rotation history
Correct answer: Police report filed at the time of the theft
A police report filed promptly after the theft provides critical third-party documentation of the loss, establishing when and where the theft occurred.
Question 4: Which factor most directly influences the labor rate used in an automotive damage estimate?
- The vehicle's color
- The geographic market and prevailing rates in that area (Correct answer)
- The age of the estimating software
- The number of prior claims on the vehicle
Correct answer: The geographic market and prevailing rates in that area
Labor rates vary by region based on local market conditions, shop overhead costs, and competitive pricing, so the geographic market is the primary determinant of the applicable rate.
Question 5: During an estimate, an adjuster finds that a door's inner structure is crushed, requiring replacement. What must also be checked on the B-pillar adjacent to that door?
- Paint color match only
- Structural deformation, weld integrity, and intrusion beam condition (Correct answer)
- Carpet wear inside the door sill
- Power window motor function
Correct answer: Structural deformation, weld integrity, and intrusion beam condition
Severe door inner structure damage often transmits force to the adjacent B-pillar, which must be inspected for deformation since it is a critical occupant safety structure.
Question 6: What is the purpose of a 'sublet' line item on a repair estimate?
- It documents parts ordered from a dealership
- It accounts for specialized services performed by outside vendors, such as glass or alignment shops (Correct answer)
- It records the insurance deductible amount
- It lists optional repair upgrades the owner can purchase
Correct answer: It accounts for specialized services performed by outside vendors, such as glass or alignment shops
Sublet charges cover work sent to outside specialists—such as glass replacement, wheel alignment, or welding—that the primary repair facility cannot perform in-house.
Question 7: When a vehicle is repaired and the insured later discovers the color does not match the adjacent panels, what estimating oversight most likely caused this issue?
- Insufficient blend labor included in the estimate (Correct answer)
- Incorrect labor rate applied to the repair
- Failure to document prior damage correctly
- Wrong deductible applied to the claim
Correct answer: Insufficient blend labor included in the estimate
Omitting or underestimating blend labor means adjacent panels were not properly feathered and color-matched, resulting in a visible color mismatch after repair.
CALA Automotive Damage Assessment & Estimation 5
When preparing a total loss valuation, which approach uses recent sales of comparable vehicles in the local market to establish actual cash value?