CALA Cheat Sheet 2026

The 30 highest-yield CALA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. When evaluating a bodily injury demand package, what does the adjuster assess to determine pre-existing conditions? → Prior medical records, prior claims history, and any gap in treatment before the accident
2. A workers compensation insurer exercises subrogation rights. This means the insurer: → Seeks reimbursement from a liable third party after paying benefits to the injured worker
3. An adjuster is offered a gift by a contractor who frequently works on insured properties. The most ethical course of action is to: → Decline the gift to avoid any actual or perceived conflict of interest
4. Which document formally authorizes a licensed adjuster to act on behalf of an insurer for a specific claim? → Letter of authority
5. A claimant refuses all offers and demands a jury trial. Which negotiation tool can still be used before trial? → Participating in mediation or arbitration
6. Under a commercial inland marine policy, which of the following is a key characteristic that distinguishes inland marine property from building coverage? → Inland marine covers property that is mobile or in transit
7. What is the PRIMARY purpose of continuing education requirements in Workers Compensation Claims for CALA professionals? → Maintaining current knowledge and competency as the field evolves
8. When a claimant hires an attorney immediately after a minor fender-bender with no visible injuries at the scene, this is best classified as: → A potential fraud indicator that warrants closer claim review
9. Which type of damages compensates a bodily injury claimant for physical pain and emotional distress? → General (non-economic) damages
10. Which party is responsible for proving the amount of an auto property damage loss under a standard US policy? → The insured (burden of proof lies with the policyholder)
11. In a multi-claimant accident where aggregate damages exceed policy limits, what approach should the adjuster take? → Prorate policy limits among all claimants to avoid preferential treatment
12. Under the NAIC Unfair Claims Settlement Practices Act model, failure to maintain adequate claim documentation can constitute: → An unfair claims settlement practice subject to regulatory penalties
13. A commercial general liability (CGL) policy's 'products-completed operations' hazard covers claims arising from: → Bodily injury caused by a product after it leaves the insured's control
14. What is 'BATNA' and why is it important in claims negotiation? → Best Alternative to a Negotiated Agreement — the fallback if negotiation fails
15. What is the PRIMARY purpose of continuing education requirements in Catastrophe Claims Handling for CALA professionals? → Maintaining current knowledge and competency as the field evolves
16. Which of the following is generally considered a 'compensable consequence' in a workers compensation claim? → A secondary injury that directly results from a compensable primary injury
17. How can catastrophe adjusters support policyholders during disasters? → Communicate clearly and provide timely updates
18. When should an adjuster consider using a 'high-low' agreement in arbitration? → When both parties want to cap maximum exposure and guarantee a minimum recovery
19. A supplemental report is filed when: → New damages or information are discovered after the original report was submitted
20. Under the PAP, Uninsured Motorist (UM) coverage protects the insured from losses caused by: → A driver who carries no liability insurance or a hit-and-run driver
21. A claimant alleges injuries from a dog bite. Which defense doctrine could bar recovery if the claimant provoked the animal? → Provocation doctrine
22. Which of the following is usually NOT covered under a commercial general liability (CGL) policy? → Intentional acts by the insured
23. An adjuster finds that a burst pipe caused water damage to drywall, flooring, and personal property. Which step should be taken first after inspecting the loss? → Determine whether the insured mitigated the loss to prevent further damage
24. Under a standard workers' compensation policy, Part Two (Employers' Liability) covers: → Lawsuits by employees alleging employer negligence outside statutory WC benefits
25. Which doctrine holds that an insurer who pays a property claim can pursue recovery against the negligent third party who caused the loss? → Subrogation
26. What does the term 'bracketing' mean in claims negotiation? → Making offers and counteroffers that bracket the target settlement
27. A surplus lines insurer may be used when the required coverage cannot be obtained from how many authorized insurers under typical state law? → At least three
28. Which document best establishes a claimant's lost wages in a bodily injury claim? → A wage verification letter from the employer and recent pay stubs
29. What does continuing education (CE) ensure for licensed adjusters? → They maintain professional knowledge and compliance
30. The concept of 'concurrent causation' in insurance claims most often arises in disputes involving: → Two causes of loss — one covered, one excluded — occurring simultaneously