CALA Documentation & Reporting Standards 2 — Questions and Answers
Question 1: When documenting a property loss, which photograph should an adjuster take FIRST upon arriving at the scene?
- Close-up photos of individual damaged items
- Wide-angle overview shots establishing the overall loss scene (Correct answer)
- Photos of policy declarations pages
- Images of the claimant's personal identification
Correct answer: Wide-angle overview shots establishing the overall loss scene
Overview/establishing shots must be taken first to document the overall scene before anything is disturbed or removed.
Question 2: A 'reservation of rights' letter must be documented in the claim file because it:
- Automatically denies the claim
- Notifies the insured that coverage may be limited while investigation continues (Correct answer)
- Releases the insurer from all future obligations
- Serves as the final coverage determination
Correct answer: Notifies the insured that coverage may be limited while investigation continues
A reservation of rights letter preserves the insurer's right to deny coverage while still investigating, and must be documented to show proper notice was given.
Question 3: Which element is REQUIRED in a proof of loss document submitted by an insured?
- Notarized signature of the insured under oath (Correct answer)
- Signature of the adjuster only
- Approval from a state insurance commissioner
- Witness signatures from two neighbors
Correct answer: Notarized signature of the insured under oath
Standard policy language requires the insured to sign the proof of loss under oath, often with notarization, to attest to the accuracy of claimed losses.
Question 4: When an adjuster uses the 'Xactimate' estimating platform, the generated estimate is considered:
- A legally binding court document
- A standardized industry tool for pricing repairs that supports claim documentation (Correct answer)
- A final payment offer that cannot be revised
- Inadmissible in any dispute resolution process
Correct answer: A standardized industry tool for pricing repairs that supports claim documentation
Xactimate produces standardized, line-item repair estimates widely accepted in the industry as documentation supporting the claimed repair costs.
Question 5: A supplemental report is filed when:
- The initial report contained no errors
- New damages or information are discovered after the original report was submitted (Correct answer)
- The insurer wants to close the file quickly
- The claimant refuses to cooperate
Correct answer: New damages or information are discovered after the original report was submitted
Supplemental reports document newly discovered damages, additional expenses, or changed circumstances found after the original report was completed.
Question 6: Under most state regulations, how long must an insurer retain claim files after final disposition?
- 6 months
- 1 year
- At least 3–7 years depending on state law (Correct answer)
- Indefinitely without any purging
Correct answer: At least 3–7 years depending on state law
State regulations typically require claim file retention for 3–7 years after final disposition, varying by jurisdiction and line of business.
Question 7: Which of the following best describes the purpose of a 'field notes' document in claims adjusting?
- Official correspondence sent to the insured
- A contemporaneous record of observations, measurements, and conversations made during the field inspection (Correct answer)
- A billing statement for adjuster services
- The final settlement agreement signed by both parties
Correct answer: A contemporaneous record of observations, measurements, and conversations made during the field inspection
Field notes capture real-time observations during inspection and serve as the raw documentation from which formal reports are later prepared.
CALA Documentation & Reporting Standards 2
When documenting a property loss, which photograph should an adjuster take FIRST upon arriving at the scene?