CALA Catastrophe Adjusting & Disaster Response 3

Question 1

Under a homeowners policy, mold damage resulting from a hurricane is MOST likely covered when:

Accepted Answer

The mold is a direct result of covered water intrusion and the insurer was promptly notified

Answer

Mold resulting directly from covered hurricane water intrusion is typically covered if the insured reported the loss promptly and mitigated damage.

Question 2

A 'catastrophe code' assigned by insurers to a specific disaster event is used primarily to:

Accepted Answer

Track and aggregate losses from a single event for statistical and reinsurance purposes

Answer

Catastrophe codes allow insurers to aggregate all claims from a single event for reinsurance reporting and industry loss tracking.

Question 3

When adjusting tornado losses, which area of damage is MOST commonly overlooked during initial inspections?

Accepted Answer

Foundation cracks and structural racking caused by wind pressure

Answer

Tornadoes can cause structural racking and foundation damage that is not visible on the surface and is commonly missed in initial inspections.

Question 4

The 'anti-concurrent causation' clause in a homeowners policy is relevant in CAT claims because it:

Accepted Answer

Can exclude a loss when an excluded peril (like flood) acts concurrently with a covered peril (like wind)

Answer

Anti-concurrent causation clauses deny coverage when an excluded peril contributes to a loss simultaneously with a covered peril.

Question 5

After a major disaster, an adjuster notices the insured has already hired a public adjuster. The CAT adjuster should:

Accepted Answer

Continue normal claim handling while directing all communications to the public adjuster as the insured's representative

Answer

When an insured is represented by a public adjuster, communications should be directed to that representative while the claim proceeds normally.

(CALA) Certified All-Lines Adjuster Practice Test