CALA Settlement Procedures 2

Question 1

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

Accepted Answer

Request an independent appraisal

Answer

File suit immediately

Answer

Deny the claim outright

Answer

Close the file as unresolved

Question 2

A 'reservation of rights' letter in a settlement context primarily serves to:

Accepted Answer

Preserve the insurer's right to deny coverage while still investigating

Answer

Accelerate payment to the claimant

Answer

Waive subrogation rights

Answer

Confirm total loss status

Question 3

Under the Unfair Claims Settlement Practices Act, how many days does an insurer typically have to acknowledge receipt of a claim?

Accepted Answer

10 days

Answer

5 days

Answer

30 days

Answer

60 days

Question 4

What does 'accord and satisfaction' mean in automotive loss settlement?

Accepted Answer

A disputed claim is fully resolved when a claimant cashes a check marked 'payment in full'

Answer

The insurer agrees to pay a supplemental estimate

Answer

Both parties agree to binding arbitration

Answer

The repair shop certifies the vehicle is restored to pre-loss condition

Question 5

Which settlement option allows the insured to keep a totaled vehicle while receiving a reduced payment?

Accepted Answer

Salvage retention by insured

Answer

Agreed value settlement

Answer

Diminished value payout

Answer

Actual cash value waiver

Question 6

In a third-party bodily injury settlement, a structured settlement differs from a lump-sum payment in that it:

Accepted Answer

Distributes payments over time, often for catastrophic injuries

Answer

Pays immediately but less money

Answer

Requires court approval for amounts under $10,000

Answer

Eliminates subrogation rights

Question 7

When settling a claim involving a minor, what additional step is generally required?

Accepted Answer

Court approval of the settlement is typically required

Answer

The minor must sign the release personally

Answer

A guardian can sign without any court involvement

Answer

The claim must be denied until the minor turns 18