CALA Claims Processing & Documentation 3

Question 1

What is the primary purpose of an Examination Under Oath (EUO) in the claims process?

Accepted Answer

To obtain sworn testimony from the insured about the loss

Answer

An EUO is a formal proceeding where the insured provides sworn testimony, allowing the insurer to investigate the claim details thoroughly.

Question 2

When processing a claim involving a lienholder on the vehicle, the settlement check should typically be made payable to:

Accepted Answer

Both the insured and the lienholder

Answer

When a vehicle has an active lien, settlement checks must name both the insured and the lienholder to protect the lender's financial interest.

Question 3

A claimant submits repair invoices totaling $4,200 but the adjuster's estimate is $3,500. The most appropriate action is to:

Accepted Answer

Contact the repair facility to reconcile the difference before issuing payment

Answer

Reconciling differences with the repair facility through a supplement review ensures accurate and fair payment.

Question 4

Which type of coverage pays for the insured's vehicle damage regardless of who was at fault?

Accepted Answer

Collision coverage

Answer

Collision coverage pays for damage to the insured's own vehicle resulting from a collision, regardless of fault.

Question 5

In claims documentation, 'subrogation potential' should be evaluated:

Accepted Answer

At the time the claim is reported and throughout the investigation

Answer

Subrogation potential should be identified early and tracked throughout the process to preserve the insurer's recovery rights.

(CALA) Certified Automotive Loss Adjuster Practice Test