CALA Settlement Procedures 3

Question 1

An adjuster discovers the claimant's vehicle was already damaged prior to the reported accident. The best course of action is to:

Accepted Answer

Document pre-existing damage separately and settle only for the new loss

Answer

Adjusters must identify and document pre-existing damage to ensure the settlement covers only the loss attributable to the covered event.

Question 2

What is the purpose of a 'proof of loss' form in the settlement process?

Accepted Answer

It is a sworn statement by the insured detailing the loss and claimed amount

Answer

A proof of loss is a formal, sworn document the insured submits to substantiate the claim amount and circumstances.

Question 3

When a claimant refuses to accept an ACV offer for a total loss, the adjuster should:

Accepted Answer

Explain the ACV calculation methodology and consider obtaining a second valuation

Answer

Transparency about the valuation methodology and willingness to review the calculation helps resolve ACV disputes fairly.

Question 4

A subrogation waiver in a settlement agreement means the insurer:

Accepted Answer

Gives up its right to pursue recovery from a third party

Answer

Waiving subrogation means the insurer forfeits its right to recover the paid claim amount from the responsible third party.

Question 5

Which document formally transfers ownership of a total-loss vehicle to the insurer?

Accepted Answer

Title assignment or certificate of title

Answer

The certificate of title, properly assigned, transfers vehicle ownership to the insurer as part of the total loss settlement.

(CALA) Certified Automotive Loss Adjuster Practice Test