Practice Test Geeks(CA) Certified Adjuster Designation Practice Test
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Portfolio Development Flashcards

7 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Portfolio Development flashcards as text

  1. When evaluating a claimant's portfolio of damaged property, which document best establishes pre-loss value for personal property?

    Answer: Scheduled personal property endorsement

    A scheduled personal property endorsement documents agreed values for specific high-value items before a loss occurs.

  2. A certified adjuster is building a professional portfolio of completed claims. What is the PRIMARY purpose of documenting complex negotiation outcomes?

    Answer: To demonstrate competency and support career advancement

    Documenting complex negotiation outcomes in a professional portfolio demonstrates adjuster competency and supports performance reviews and career advancement.

  3. Which type of loss portfolio MOST requires a catastrophe (CAT) adjuster specialization?

    Answer: Widespread weather-event property damage claims

    CAT adjusters specialize in large-scale weather or disaster events affecting many properties simultaneously, requiring rapid deployment and high-volume handling.

  4. An adjuster's claim portfolio shows a reserve-to-payment ratio significantly higher than peers. What does this MOST likely indicate?

    Answer: The adjuster is consistently setting reserves too high

    A consistently high reserve-to-payment ratio suggests reserves are being set above ultimate payments, indicating over-reserving.

  5. In developing a claims portfolio strategy, what does 'severity management' refer to?

    Answer: Minimizing the average cost per claim

    Severity management focuses on controlling and minimizing the average cost per claim through proactive investigation, mitigation, and resolution strategies.

  6. When documenting a portfolio of completed property claims, which element is MOST critical for demonstrating thorough investigation?

    Answer: A complete activity log with dates, contacts, and findings

    A complete activity log with timestamps, contact details, and investigative findings is the cornerstone of a well-documented claim portfolio.

  7. A portfolio of commercial property claims is being audited. Auditors note several files lack subrogation evaluations. This gap MOST directly affects the insurer's:

    Answer: Ability to recover paid losses from responsible third parties

    Failing to evaluate subrogation opportunities means the insurer may lose the ability to recover claim payments from negligent third parties.