apm, from what I've read in the technical manual, it appears there is a three grade cap in math, based on the start point you're assigned at the beginning (set by the teacher, and presumably based on your nominal grade level in the subject). So, yes, if your daughter's beginning point on the test was fourth grade, seventh grade would be at the ceiling of the test. OTOH, if the school chose to set her starting point higher, the ceiling would be accordingly higher. It's not the test per se that has a ceiling of three grades, but in any given item set, the computer adaptive item selection will not exceed +3 grades.
On the reading levels, I presume you have already had the conversation about the low likelihood of actually losing four grade levels of reading skill, in the absence of brain trauma? Are they willing to let her re-take it? The tricky thing about these CATs is that if you get the first couple of items wrong, you won't be able to work your way back up to your true level before you run out of items.
