CALA Claims Processing & Documentation 5

Question 1

In a multi-vehicle accident claim, the adjuster determines that fault is shared 30% with the insured. In a pure comparative negligence state, the insured's recovery would be:

Accepted Answer

Reduced by 30% from the total damages

Answer

In pure comparative negligence states, the claimant's recovery is reduced proportionally by their percentage of fault.

Question 2

What is the purpose of a 'reservation of rights' when processing a claim under a policy with a potential coverage exclusion?

Accepted Answer

To notify the insured that coverage may be limited while investigation continues

Answer

A reservation of rights letter notifies the insured of potential coverage issues while allowing the investigation to proceed, preserving the insurer's right to deny later.

Question 3

When an adjuster discovers that a claimant's recorded statement contradicts physical evidence at the scene, the correct action is to:

Accepted Answer

Document the inconsistencies and flag the claim for special investigation

Answer

Inconsistencies between statements and evidence should be documented and referred to the Special Investigations Unit (SIU) for potential fraud review.

Question 4

Which of the following best describes the 'diminished value' concept in automotive claims?

Accepted Answer

The decrease in a vehicle's market value after being repaired from an accident

Answer

Diminished value refers to the loss in market value a vehicle sustains even after quality repairs, because buyers pay less for accident-history vehicles.

Question 5

A statute of limitations for an auto insurance claim typically begins running from:

Accepted Answer

The date the loss occurred

Answer

The statute of limitations for property damage claims generally begins on the date the loss occurred, varying by state law.

(CALA) Certified Automotive Loss Adjuster Practice Test

(CALA) Certified Automotive Loss Adjuster Practice Test

CALA Claims Processing & Documentation 5