Florida Public Adjuster License Exam (3-20) Practice Exam Complete
Study Guide Updated 2026 | Verified Questions & Answers with Detailed
Rationales | Comprehensive Review of Florida Insurance Laws, Claims
Adjusting Procedures, Policy Interpretation, Property Claims, Liability
Coverage, Ethics Requirements, Licensing Regulations & Claims
Settlement Practices
**Question 1: Under Florida Statute § 626.854, what is the maximum percentage a
public adjuster may charge for adjusting services on a claim settlement of $50,000
or less?
A. 5%
B. 10%
C. 15%
D. 20%
CORRECT ANSWER: B. 10%
Rationale: Florida Statute § 626.854(1)(a) establishes that for claims settlements of
$50,000 or less, a public adjuster may not charge, demand, or receive compensation
exceeding 10% of the amount of the claim settlement. This statutory fee cap protects
consumers from excessive fees on smaller claims.
**Question 2: Which Florida administrative rule requires a public adjuster to
provide a written contract to the insured before performing any adjusting services?
A. Rule 69B-220.201, F.A.C.
B. Rule 69O-120.305, F.A.C.
C. Rule 69B-150.102, F.A.C.
D. Rule 626.9541, F.S.
CORRECT ANSWER: A. Rule 69B-220.201, F.A.C.
Rationale: Rule 69B-220.201, Florida Administrative Code, mandates that a public
adjuster must execute a written contract with the insured prior to performing any
adjusting services. The contract must include specific disclosures, fee structures, and
cancellation rights as required by Florida law.
**Question 3: What is the minimum age requirement to qualify for a Florida Public
Adjuster License (3-20)?
A. 18 years
B. 20 years
C. 21 years
D. 25 years
CORRECT ANSWER: A. 18 years
Rationale: Florida Statute § 626.112(1) specifies that an applicant for any insurance
license, including the Public Adjuster (3-20) license, must be at least 18 years of age.
,This is a foundational eligibility requirement alongside residency, education, and
examination criteria.
**Question 4: A Florida public adjuster receives a referral fee from a restoration
contractor for directing clients to that contractor. This practice is:
A. Permitted if disclosed to the client
B. Permitted if the fee is under $100
C. Prohibited under Florida law
D. Permitted with written approval from the Department of Financial Services
CORRECT ANSWER: C. Prohibited under Florida law
Rationale: Florida Statute § 626.854(4) expressly prohibits public adjusters from
soliciting or accepting compensation, commissions, or referral fees from contractors,
restoration companies, or other service providers in connection with claims. This
prevents conflicts of interest and protects the insured's right to unbiased
representation.
**Question 5: Which document must a Florida public adjuster file with the
Department of Financial Services within 30 days of changing their business
address?
A. License Renewal Application
B. Change of Address Notification
C. Surety Bond Amendment
D. Continuing Education Certification
CORRECT ANSWER: B. Change of Address Notification
Rationale: Per Florida Statute § 626.112(5) and Department rules, licensees must notify
the Department of Financial Services of any change in business or residential address
within 30 days. Failure to do so may result in administrative penalties or license
suspension.
**Question 6: Under Florida law, what is the statutory cancellation period for a
public adjuster contract signed during a state of emergency declared by the
Governor?
A. 24 hours
B. 3 business days
C. 5 business days
D. 10 calendar days
CORRECT ANSWER: D. 10 calendar days
Rationale: Florida Statute § 626.854(2)(b) provides that contracts executed during a
declared state of emergency grant the insured a 10-calendar-day right to cancel without
penalty. This consumer protection measure addresses heightened vulnerability during
disaster periods.
,**Question 7: Which of the following activities is expressly authorized for a Florida-
licensed public adjuster?
A. Providing legal advice regarding claim denial appeals
B. Negotiating claim settlements on behalf of the insured
C. Performing structural engineering assessments
D. Issuing insurance policies
CORRECT ANSWER: B. Negotiating claim settlements on behalf of the insured
Rationale: Florida Statute § 626.854(1) defines a public adjuster as a person who, for
compensation, acts on behalf of an insured in negotiating or effecting the settlement of
claims. Public adjusters may not practice law, perform engineering, or issue policies—
activities reserved for licensed attorneys, engineers, and insurers respectively.
**Question 8: What is the required surety bond amount for a Florida Public Adjuster
License (3-20)?
A. $10,000
B. $25,000
C. $50,000
D. $100,000
CORRECT ANSWER: B. $25,000
Rationale: Florida Statute § 626.854(3) mandates that public adjuster applicants file a
surety bond in the amount of $25,000 with the Department of Financial Services. The
bond protects consumers against fraudulent or unethical conduct by the adjuster.
**Question 9: A public adjuster in Florida fails to maintain required continuing
education credits. What is the administrative consequence?
A. Automatic license suspension
B. Monetary fine only
C. License renewal denial until requirements are met
D. Mandatory re-examination
CORRECT ANSWER: C. License renewal denial until requirements are met
Rationale: Per Florida Statute § 626.281 and Department rules, licensees must
complete 24 hours of approved continuing education every two years, including 5 hours
of ethics. Failure to comply results in denial of license renewal until the deficiency is
corrected, though late completion may be permitted with penalties.
**Question 10: Which Florida statute governs the ethical conduct and disciplinary
procedures for public adjusters?
A. Chapter 624, Florida Statutes
B. Chapter 626, Florida Statutes
, C. Chapter 627, Florida Statutes
D. Chapter 631, Florida Statutes
CORRECT ANSWER: B. Chapter 626, Florida Statutes
Rationale: Chapter 626, Florida Statutes, titled "Insurance Agents and Adjusters,"
contains the regulatory framework for public adjuster licensing, conduct, fees,
disciplinary actions, and consumer protections. Chapters 624, 627, and 631 address
insurance code administration, insurance contracts, and insolvency respectively.
**Question 11: When representing a client on a property damage claim, a Florida
public adjuster must maintain all claim-related records for a minimum of:
A. 2 years
B. 3 years
C. 5 years
D. 7 years
CORRECT ANSWER: C. 5 years
Rationale: Rule 69B-220.301, F.A.C., requires public adjusters to retain all books,
records, and documents related to claim adjustments for at least five years from the
date of claim closure. This ensures accountability and facilitates regulatory audits or
consumer disputes.
**Question 12: Which of the following is NOT a valid ground for disciplinary action
against a Florida public adjuster?
A. Misrepresentation of policy coverage
B. Failure to disclose a conflict of interest
C. Charging a fee within statutory limits
D. Negligent claim handling
CORRECT ANSWER: C. Charging a fee within statutory limits
Rationale: Charging a fee that complies with Florida Statute § 626.854(1)(a) fee caps is
lawful and not grounds for discipline. Disciplinary actions under § 626.854(4) address
misconduct such as misrepresentation, fraud, negligence, or conflicts of interest.
**Question 13: A Florida public adjuster may NOT represent which of the following
parties on the same claim?
A. Two insureds with separate policies on the same property
B. An insured and a mortgagee with an insurable interest
C. An insured and the insurer
D. An insured and a lienholder
CORRECT ANSWER: C. An insured and the insurer
Rationale: Florida law prohibits dual representation due to inherent conflicts of interest.
A public adjuster's fiduciary duty is exclusively to the insured. Representing both the
Study Guide Updated 2026 | Verified Questions & Answers with Detailed
Rationales | Comprehensive Review of Florida Insurance Laws, Claims
Adjusting Procedures, Policy Interpretation, Property Claims, Liability
Coverage, Ethics Requirements, Licensing Regulations & Claims
Settlement Practices
**Question 1: Under Florida Statute § 626.854, what is the maximum percentage a
public adjuster may charge for adjusting services on a claim settlement of $50,000
or less?
A. 5%
B. 10%
C. 15%
D. 20%
CORRECT ANSWER: B. 10%
Rationale: Florida Statute § 626.854(1)(a) establishes that for claims settlements of
$50,000 or less, a public adjuster may not charge, demand, or receive compensation
exceeding 10% of the amount of the claim settlement. This statutory fee cap protects
consumers from excessive fees on smaller claims.
**Question 2: Which Florida administrative rule requires a public adjuster to
provide a written contract to the insured before performing any adjusting services?
A. Rule 69B-220.201, F.A.C.
B. Rule 69O-120.305, F.A.C.
C. Rule 69B-150.102, F.A.C.
D. Rule 626.9541, F.S.
CORRECT ANSWER: A. Rule 69B-220.201, F.A.C.
Rationale: Rule 69B-220.201, Florida Administrative Code, mandates that a public
adjuster must execute a written contract with the insured prior to performing any
adjusting services. The contract must include specific disclosures, fee structures, and
cancellation rights as required by Florida law.
**Question 3: What is the minimum age requirement to qualify for a Florida Public
Adjuster License (3-20)?
A. 18 years
B. 20 years
C. 21 years
D. 25 years
CORRECT ANSWER: A. 18 years
Rationale: Florida Statute § 626.112(1) specifies that an applicant for any insurance
license, including the Public Adjuster (3-20) license, must be at least 18 years of age.
,This is a foundational eligibility requirement alongside residency, education, and
examination criteria.
**Question 4: A Florida public adjuster receives a referral fee from a restoration
contractor for directing clients to that contractor. This practice is:
A. Permitted if disclosed to the client
B. Permitted if the fee is under $100
C. Prohibited under Florida law
D. Permitted with written approval from the Department of Financial Services
CORRECT ANSWER: C. Prohibited under Florida law
Rationale: Florida Statute § 626.854(4) expressly prohibits public adjusters from
soliciting or accepting compensation, commissions, or referral fees from contractors,
restoration companies, or other service providers in connection with claims. This
prevents conflicts of interest and protects the insured's right to unbiased
representation.
**Question 5: Which document must a Florida public adjuster file with the
Department of Financial Services within 30 days of changing their business
address?
A. License Renewal Application
B. Change of Address Notification
C. Surety Bond Amendment
D. Continuing Education Certification
CORRECT ANSWER: B. Change of Address Notification
Rationale: Per Florida Statute § 626.112(5) and Department rules, licensees must notify
the Department of Financial Services of any change in business or residential address
within 30 days. Failure to do so may result in administrative penalties or license
suspension.
**Question 6: Under Florida law, what is the statutory cancellation period for a
public adjuster contract signed during a state of emergency declared by the
Governor?
A. 24 hours
B. 3 business days
C. 5 business days
D. 10 calendar days
CORRECT ANSWER: D. 10 calendar days
Rationale: Florida Statute § 626.854(2)(b) provides that contracts executed during a
declared state of emergency grant the insured a 10-calendar-day right to cancel without
penalty. This consumer protection measure addresses heightened vulnerability during
disaster periods.
,**Question 7: Which of the following activities is expressly authorized for a Florida-
licensed public adjuster?
A. Providing legal advice regarding claim denial appeals
B. Negotiating claim settlements on behalf of the insured
C. Performing structural engineering assessments
D. Issuing insurance policies
CORRECT ANSWER: B. Negotiating claim settlements on behalf of the insured
Rationale: Florida Statute § 626.854(1) defines a public adjuster as a person who, for
compensation, acts on behalf of an insured in negotiating or effecting the settlement of
claims. Public adjusters may not practice law, perform engineering, or issue policies—
activities reserved for licensed attorneys, engineers, and insurers respectively.
**Question 8: What is the required surety bond amount for a Florida Public Adjuster
License (3-20)?
A. $10,000
B. $25,000
C. $50,000
D. $100,000
CORRECT ANSWER: B. $25,000
Rationale: Florida Statute § 626.854(3) mandates that public adjuster applicants file a
surety bond in the amount of $25,000 with the Department of Financial Services. The
bond protects consumers against fraudulent or unethical conduct by the adjuster.
**Question 9: A public adjuster in Florida fails to maintain required continuing
education credits. What is the administrative consequence?
A. Automatic license suspension
B. Monetary fine only
C. License renewal denial until requirements are met
D. Mandatory re-examination
CORRECT ANSWER: C. License renewal denial until requirements are met
Rationale: Per Florida Statute § 626.281 and Department rules, licensees must
complete 24 hours of approved continuing education every two years, including 5 hours
of ethics. Failure to comply results in denial of license renewal until the deficiency is
corrected, though late completion may be permitted with penalties.
**Question 10: Which Florida statute governs the ethical conduct and disciplinary
procedures for public adjusters?
A. Chapter 624, Florida Statutes
B. Chapter 626, Florida Statutes
, C. Chapter 627, Florida Statutes
D. Chapter 631, Florida Statutes
CORRECT ANSWER: B. Chapter 626, Florida Statutes
Rationale: Chapter 626, Florida Statutes, titled "Insurance Agents and Adjusters,"
contains the regulatory framework for public adjuster licensing, conduct, fees,
disciplinary actions, and consumer protections. Chapters 624, 627, and 631 address
insurance code administration, insurance contracts, and insolvency respectively.
**Question 11: When representing a client on a property damage claim, a Florida
public adjuster must maintain all claim-related records for a minimum of:
A. 2 years
B. 3 years
C. 5 years
D. 7 years
CORRECT ANSWER: C. 5 years
Rationale: Rule 69B-220.301, F.A.C., requires public adjusters to retain all books,
records, and documents related to claim adjustments for at least five years from the
date of claim closure. This ensures accountability and facilitates regulatory audits or
consumer disputes.
**Question 12: Which of the following is NOT a valid ground for disciplinary action
against a Florida public adjuster?
A. Misrepresentation of policy coverage
B. Failure to disclose a conflict of interest
C. Charging a fee within statutory limits
D. Negligent claim handling
CORRECT ANSWER: C. Charging a fee within statutory limits
Rationale: Charging a fee that complies with Florida Statute § 626.854(1)(a) fee caps is
lawful and not grounds for discipline. Disciplinary actions under § 626.854(4) address
misconduct such as misrepresentation, fraud, negligence, or conflicts of interest.
**Question 13: A Florida public adjuster may NOT represent which of the following
parties on the same claim?
A. Two insureds with separate policies on the same property
B. An insured and a mortgagee with an insurable interest
C. An insured and the insurer
D. An insured and a lienholder
CORRECT ANSWER: C. An insured and the insurer
Rationale: Florida law prohibits dual representation due to inherent conflicts of interest.
A public adjuster's fiduciary duty is exclusively to the insured. Representing both the
