CALA Claims Processing & Documentation 2

Question 1

When a claimant disputes the adjuster's damage assessment, what is the most appropriate first step?

Accepted Answer

Conduct a joint re-inspection with the claimant present

Answer

A joint re-inspection allows both parties to review damage together, often resolving disputes without escalation.

Question 2

Which document establishes the legal basis for an insurance company's right to pursue a third party after paying a claim?

Accepted Answer

Subrogation agreement

Answer

A subrogation agreement allows the insurer to recover costs from the at-fault third party after compensating the insured.

Question 3

A vehicle is declared a total loss when repair costs exceed what threshold in most states?

Accepted Answer

75% of ACV

Answer

Most states use a total loss threshold of 75% of actual cash value, though this varies by jurisdiction.

Question 4

What information must be included in a reservation of rights letter?

Accepted Answer

Specific policy provisions that may limit or exclude coverage

Answer

A reservation of rights letter must identify specific policy provisions that may affect coverage while the investigation continues.

Question 5

When documenting a salvage vehicle claim, which detail is most critical to record?

Accepted Answer

The salvage value and disposition method

Answer

Salvage value and how the vehicle will be disposed of (auction, scrap, etc.) directly affect the net claim cost.

(CALA) Certified Automotive Loss Adjuster Practice Test