Adjuster Professional Ethics Flashcards
7 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Adjuster Professional Ethics flashcards as text
An automotive loss adjuster discovers that a claimant is also the adjuster's neighbor. What is the most appropriate course of action?
Answer: Disclose the relationship to a supervisor and request reassignment
Adjusters must disclose potential conflicts of interest and recuse themselves to maintain impartiality.
Which action by an automotive loss adjuster would constitute a breach of confidentiality?
Answer: Discussing a high-profile claimant's settlement amount at a social gathering
Disclosing claim information in unauthorized social contexts violates the claimant's confidentiality rights.
A body shop owner offers an adjuster tickets to a sporting event after the adjuster approved a large repair estimate. The adjuster should:
Answer: Decline and report the offer to their supervisor or compliance department
Accepting gifts from vendors with whom you conduct business creates a conflict of interest regardless of claim status.
What does the principle of 'utmost good faith' (uberrimae fidei) require of an automotive loss adjuster?
Answer: Acting honestly, disclosing all material facts, and dealing fairly with all parties
Utmost good faith obligates adjusters to be honest and transparent with all material information affecting the claim.
An adjuster is pressured by a supervisor to close claims quickly by offering low settlements before claimants consult attorneys. This practice is:
Answer: Unethical and may violate unfair claims settlement practice laws
Discouraging claimants from seeking legal counsel and pressuring quick low settlements violates ethical standards and many state insurance codes.
Which of the following best describes an adjuster's duty when they lack expertise to evaluate a specialized automotive damage claim?
Answer: Consult a qualified specialist or appraiser before issuing a determination
Professional ethics require adjusters to recognize the limits of their competence and obtain expert assistance when needed.
An adjuster who willfully misrepresents facts in a claims report to benefit the insurer is subject to:
Answer: Disciplinary action, license revocation, and potential criminal liability
Deliberate misrepresentation in claims documents can result in professional sanctions, license loss, and criminal charges for fraud.