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Florida Claims Adjuster Licensing Actual Exam with 206
Practice Questions, Verified Answers & Detailed
Rationales | 2026/2027 Grade A Study Guide
1. Jane has a $150,000 homeowners policy with a 3% percentage
deductible. An oven fire causes $50,000 in damage. How much of the
damage is Jane's responsibility?
A. $1,500
B. $4,500
C. $50,000
D. $55,500
CORRECT ANSWER: B
Rationale: A percentage deductible is calculated as a percentage of the
policy limit. 3% of $150,000 = $4,500. Jane is responsible for this
deductible amount.
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2. Xavier owns a small insurance company bidding to insure a new
housing development. His company could handle single claims, but a
series of tornadoes destroying the entire development would cause
financial ruin. Which type of insurer could best protect Xavier's
company from this potential loss?
A. An excess insurer
B. A surplus lines insurer
C. A re-insurer
D. A captive insurer
CORRECT ANSWER: C
Rationale: Re-insurers provide insurance to insurance companies,
allowing them to spread the risk of catastrophic losses (like a tornado
destroying an entire development) that could otherwise bankrupt
them.
3. Which of the following situations does NOT involve an instance of
"pure risk?"
A. A house burning down in a fire
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B. A car being stolen
C. Loss of money invested in the stock market
D. A person becoming disabled due to an accident
CORRECT ANSWER: C
Rationale: Pure risk involves only the possibility of loss or no loss (e.g.,
fire, theft, accident). Speculative risk, like investing in the stock market,
involves the possibility of loss, gain, or no change.
4. Which of the following is an insurable risk?
A. A gambling debt
B. A football stadium
C. A bet on a football game
D. An illegal operation
CORRECT ANSWER: B
Rationale: To be insurable, a risk must be fortuitous (accidental),
measurable, and involve a legitimate financial interest. A football
stadium is tangible property that meets these criteria. Gambling debts,
bets, and illegal activities are not insurable interests.
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5. John's farm storage building burns down after a lightning strike,
aided by the fuel tanks he kept inside against policy rules. John
withholds this information when filing his claim. John's insurer denies
his claim based on his:
A. Misrepresentation
B. Concealment
C. Fraud
D. Breach of warranty
CORRECT ANSWER: B
Rationale: Concealment is the intentional failure to disclose a material
fact (like storing fuel in a building) that would affect the insurer's
decision to accept the risk or settle the claim. This is grounds for denial.
6. A chain shed burned down during a tornado when high winds broke
a wall, knocking over a lantern inside. What is the proximate cause of
the loss?
A. Fire
B. Wind
Florida Claims Adjuster Licensing Actual Exam with 206
Practice Questions, Verified Answers & Detailed
Rationales | 2026/2027 Grade A Study Guide
1. Jane has a $150,000 homeowners policy with a 3% percentage
deductible. An oven fire causes $50,000 in damage. How much of the
damage is Jane's responsibility?
A. $1,500
B. $4,500
C. $50,000
D. $55,500
CORRECT ANSWER: B
Rationale: A percentage deductible is calculated as a percentage of the
policy limit. 3% of $150,000 = $4,500. Jane is responsible for this
deductible amount.
,2|Page
2. Xavier owns a small insurance company bidding to insure a new
housing development. His company could handle single claims, but a
series of tornadoes destroying the entire development would cause
financial ruin. Which type of insurer could best protect Xavier's
company from this potential loss?
A. An excess insurer
B. A surplus lines insurer
C. A re-insurer
D. A captive insurer
CORRECT ANSWER: C
Rationale: Re-insurers provide insurance to insurance companies,
allowing them to spread the risk of catastrophic losses (like a tornado
destroying an entire development) that could otherwise bankrupt
them.
3. Which of the following situations does NOT involve an instance of
"pure risk?"
A. A house burning down in a fire
,3|Page
B. A car being stolen
C. Loss of money invested in the stock market
D. A person becoming disabled due to an accident
CORRECT ANSWER: C
Rationale: Pure risk involves only the possibility of loss or no loss (e.g.,
fire, theft, accident). Speculative risk, like investing in the stock market,
involves the possibility of loss, gain, or no change.
4. Which of the following is an insurable risk?
A. A gambling debt
B. A football stadium
C. A bet on a football game
D. An illegal operation
CORRECT ANSWER: B
Rationale: To be insurable, a risk must be fortuitous (accidental),
measurable, and involve a legitimate financial interest. A football
stadium is tangible property that meets these criteria. Gambling debts,
bets, and illegal activities are not insurable interests.
, 4|Page
5. John's farm storage building burns down after a lightning strike,
aided by the fuel tanks he kept inside against policy rules. John
withholds this information when filing his claim. John's insurer denies
his claim based on his:
A. Misrepresentation
B. Concealment
C. Fraud
D. Breach of warranty
CORRECT ANSWER: B
Rationale: Concealment is the intentional failure to disclose a material
fact (like storing fuel in a building) that would affect the insurer's
decision to accept the risk or settle the claim. This is grounds for denial.
6. A chain shed burned down during a tornado when high winds broke
a wall, knocking over a lantern inside. What is the proximate cause of
the loss?
A. Fire
B. Wind
