Florida 3-20 Public Adjuster Exam Outlines| 120
questions| with complete solutions
There are several important statutory requirements pertaining to contracts made by public
adjusters: Correct Answer: Must state the type of claim, including an emergency claim, non-
emergency claim or supplemental claim.
Requires the signatures of all named insureds.
If the signatures of all named insureds are not available, the public adjuster must submit an
affidavit signed by the available named insureds attesting that they have authority to enter into
the contract and settle all claim issues on behalf of the named insureds.
An unaltered copy of the contract must be remitted to the insurer within 30 days after execution.
This means the contract provided to the insurer must also contain the agreed upon fee
percentage.
True or False: Both mediation and sinkhole neutral evaluation are non-binding. Neither the
insured nor the insurance company is legally obligated to accept the outcome of the mediation
conference. Correct Answer: True
The ______________ is intended for use by parties who are beginning the process of filing suit
against an insurer, when a party feels they have been damaged by specific acts of the insurer.
The Notice is intended to meet a portion of legal requirements set forth in Section 624.155,
Florida Statutes, which requires a party to file Notice with both the insurer and the Department
of Financial Services (DFS) at least 60 days prior to bringing an action against the insurer. The
DFS does not involve itself in the pre-suit negotiations or communications related to Notices as
such actions are not within the scope of its statutory authority. Correct Answer: Civil Remedies
Notice
Mediation Statute 627.7015 Correct Answer: The department shall adopt by rule a property
insurance mediation program to be administered by the department or its designee. The
department may also adopt special rules which are applicable in cases of an emergency within
the state. The rules shall be modeled after practices and procedures set forth in mediation rules of
procedure adopted by the Supreme Court. The rules shall provide for:(a) Reasonable requirement
for processing and scheduling of requests for mediation.(b) Qualifications, denial of application,
suspension, revocation of approval, and other penalties for mediators as provided in s. 627.745
and the Florida Rules for Certified and Court-Appointed Mediators.(c) Provisions governing who
may attend mediation conferences.(d) Selection of mediators.(e) Criteria for the conduct of
mediation conferences.(f) Right to legal counsel.
(5) All statements made and documents produced at a mediation conference shall be deemed to
be settlement negotiations in anticipation of litigation within the scope of s. 90.408. All parties to
the mediation must negotiate in good faith and must have the authority to immediately settle the
claim. Mediators are deemed to be agents of the department and shall have the immunity from
suit provided in s. 44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder has
3 business days within which the policyholder may rescind the settlement unless the policyholder
has cashed or deposited any check or draft disbursed to the policyholder for the disputed matters
, as a result of the conference. If a settlement agreement is reached and is not rescinded, it is
binding and acts as a release of all specific claims that were presented in that mediation
conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report of the results
of mediation, including any settlement amount, to the insurer, the policyholder, and the
policyholder's representative if the policyholder is represented at the mediation.
(7) If the insurer fails to comply with subsection (2) by failing to notify a policyholder of its right
to participate in the mediation program under this section or if the insurer requests the mediation,
and the mediation results are rejected by either party, the policyholder is not required to submit
to or participate in any contractual loss appraisal process of the property loss damage as a
precondition to legal action for breach of contract against the insurer for its failure to pay the
policyholder's claims covered by the policy.
(8) The department may designate an entity or person to serve as administrator to carry out any
of the provisions of this section and may take this action by means of a written contract or
agreement.
(9) For purposes of this section, the term "claim" refers to any dispute between an insurer and a
policyholder relating to a material issue of fact other than a dispute:(a) With respect to which the
insurer has a reasonable basis to suspect fraud;(b) When, based on agreed-upon facts as to the
cause of loss, there is no coverage under the policy;(c) With respect to which the insurer has a
reasonable basis to believe that the policyholder has intentionally made a material
misrepresentation of fact which is relevant to the claim, and the entire request for payment of a
loss has been denied on the basis of the material misrepresentation;(d) With respect to which the
amount in controversy is less than $500, unless the parties agree to mediate a dispute involving a
lesser amount; or(e) With respect to a windstorm or hurricane loss that does not comply with s.
627.70132.
Code of ethics (FAC 69B-220.201) Correct Answer: The work of adjusting insurance claims
engages the public trust. An adjuster shall put the duty for fair and honest treatment of the
claimant above the adjuster's own interests in every instance. ... (b) An adjuster shall treat all
claimants equally.
Florida Insurance Guaranty Association Correct Answer: establishes and maintains a service-
oriented operation for processing covered claims of insolvent members. FIGA is a nonprofit
corporation created by the Florida Legislature in 1970. FIGA services pending claims by or
against Florida policyholders of member insurance companies which become insolvent and are
ordered liquidated.
The Residential Property and Casualty Joint Underwriting Association originally created by this
statute shall be known as the Citizens Property Insurance Corporation Correct Answer: The
corporation shall provide insurance for residential and commercial property, for applicants who
are entitled, but, in good faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage Correct Answer: We will
pay for "loss" to a covered "auto" or its equipment under:
a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with
another object; or (2) The covered "auto's" overturn.
questions| with complete solutions
There are several important statutory requirements pertaining to contracts made by public
adjusters: Correct Answer: Must state the type of claim, including an emergency claim, non-
emergency claim or supplemental claim.
Requires the signatures of all named insureds.
If the signatures of all named insureds are not available, the public adjuster must submit an
affidavit signed by the available named insureds attesting that they have authority to enter into
the contract and settle all claim issues on behalf of the named insureds.
An unaltered copy of the contract must be remitted to the insurer within 30 days after execution.
This means the contract provided to the insurer must also contain the agreed upon fee
percentage.
True or False: Both mediation and sinkhole neutral evaluation are non-binding. Neither the
insured nor the insurance company is legally obligated to accept the outcome of the mediation
conference. Correct Answer: True
The ______________ is intended for use by parties who are beginning the process of filing suit
against an insurer, when a party feels they have been damaged by specific acts of the insurer.
The Notice is intended to meet a portion of legal requirements set forth in Section 624.155,
Florida Statutes, which requires a party to file Notice with both the insurer and the Department
of Financial Services (DFS) at least 60 days prior to bringing an action against the insurer. The
DFS does not involve itself in the pre-suit negotiations or communications related to Notices as
such actions are not within the scope of its statutory authority. Correct Answer: Civil Remedies
Notice
Mediation Statute 627.7015 Correct Answer: The department shall adopt by rule a property
insurance mediation program to be administered by the department or its designee. The
department may also adopt special rules which are applicable in cases of an emergency within
the state. The rules shall be modeled after practices and procedures set forth in mediation rules of
procedure adopted by the Supreme Court. The rules shall provide for:(a) Reasonable requirement
for processing and scheduling of requests for mediation.(b) Qualifications, denial of application,
suspension, revocation of approval, and other penalties for mediators as provided in s. 627.745
and the Florida Rules for Certified and Court-Appointed Mediators.(c) Provisions governing who
may attend mediation conferences.(d) Selection of mediators.(e) Criteria for the conduct of
mediation conferences.(f) Right to legal counsel.
(5) All statements made and documents produced at a mediation conference shall be deemed to
be settlement negotiations in anticipation of litigation within the scope of s. 90.408. All parties to
the mediation must negotiate in good faith and must have the authority to immediately settle the
claim. Mediators are deemed to be agents of the department and shall have the immunity from
suit provided in s. 44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder has
3 business days within which the policyholder may rescind the settlement unless the policyholder
has cashed or deposited any check or draft disbursed to the policyholder for the disputed matters
, as a result of the conference. If a settlement agreement is reached and is not rescinded, it is
binding and acts as a release of all specific claims that were presented in that mediation
conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report of the results
of mediation, including any settlement amount, to the insurer, the policyholder, and the
policyholder's representative if the policyholder is represented at the mediation.
(7) If the insurer fails to comply with subsection (2) by failing to notify a policyholder of its right
to participate in the mediation program under this section or if the insurer requests the mediation,
and the mediation results are rejected by either party, the policyholder is not required to submit
to or participate in any contractual loss appraisal process of the property loss damage as a
precondition to legal action for breach of contract against the insurer for its failure to pay the
policyholder's claims covered by the policy.
(8) The department may designate an entity or person to serve as administrator to carry out any
of the provisions of this section and may take this action by means of a written contract or
agreement.
(9) For purposes of this section, the term "claim" refers to any dispute between an insurer and a
policyholder relating to a material issue of fact other than a dispute:(a) With respect to which the
insurer has a reasonable basis to suspect fraud;(b) When, based on agreed-upon facts as to the
cause of loss, there is no coverage under the policy;(c) With respect to which the insurer has a
reasonable basis to believe that the policyholder has intentionally made a material
misrepresentation of fact which is relevant to the claim, and the entire request for payment of a
loss has been denied on the basis of the material misrepresentation;(d) With respect to which the
amount in controversy is less than $500, unless the parties agree to mediate a dispute involving a
lesser amount; or(e) With respect to a windstorm or hurricane loss that does not comply with s.
627.70132.
Code of ethics (FAC 69B-220.201) Correct Answer: The work of adjusting insurance claims
engages the public trust. An adjuster shall put the duty for fair and honest treatment of the
claimant above the adjuster's own interests in every instance. ... (b) An adjuster shall treat all
claimants equally.
Florida Insurance Guaranty Association Correct Answer: establishes and maintains a service-
oriented operation for processing covered claims of insolvent members. FIGA is a nonprofit
corporation created by the Florida Legislature in 1970. FIGA services pending claims by or
against Florida policyholders of member insurance companies which become insolvent and are
ordered liquidated.
The Residential Property and Casualty Joint Underwriting Association originally created by this
statute shall be known as the Citizens Property Insurance Corporation Correct Answer: The
corporation shall provide insurance for residential and commercial property, for applicants who
are entitled, but, in good faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage Correct Answer: We will
pay for "loss" to a covered "auto" or its equipment under:
a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with
another object; or (2) The covered "auto's" overturn.
