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FLORIDA CERTIFIED ADJUSTER LICENSING
EXAM 2025| BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. Edward is a member of the Knights of Columbus, a religious group
dedicated to voluntary service to the benefit of society. He also recently
purchased a $100,000 life insurance policy from the organization. This
was possible because the Knights of Columbus is: - correct answer - a
fraternal benefit society
2. Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently more
than 30 days late, and has been so five times in the last year, and his
insurer has done nothing about it. When Jason gets into an accident and
files a claim, which of the following is most likely to happen? - correct
answer - The insurer will pay the claim because of the implied waiver
they have made by not cancelling Jason's policy the previous times he
was late with his payments
3. Jared hopes to purchase a new insurance policy for his car, but he has
an extremely poor driving record. The insurance company decides to
issue Jared an insurance policy, but charges him a premium much
higher than the average driver. The insurance company is practicing: -
correct answer - risk reduction
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4. Which of the following is NOT a characteristic of insurance contracts?
(aleatory, conditional, unilateral, universal) - correct answer - universal
5. A few weeks ago Christopher's garage was destroyed by an out-of-
control motorist. Fortunately, the motorist had sufficient liability
insurance to cover the damages. However, the insurer insists that
Christopher's garage is worth far less than the appraisals he has
received from contractors. Christopher and the insurer have gone back
and forth in negotiations for weeks, making little headway. Christopher
decides it's time to: - correct answer - issue a complaint against the
policyholder
6. A reciprocal insurer is: - correct answer - an unincorporated organization
of subscribers that operates through an attorney-in-fact to provide
insurance benefits for its members.
7. Bob has been in the construction business a long time and is ready to
retire. He sells the company to his friend Scott and then lets the insurer
know that any claims against his policy should be paid to Scott from now
on. The insurer informs Bob that they cannot do this due to which
condition? - correct answer - assignment
8. Cindy and her insurer cannot reach an agreement for her property claim,
and have gone back and forth for weeks without coming within $10,000
of each other. At this point, since both believe they are offering a fair
settlement, a third party is needed to help facilitate the negotiation. Both
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parties still want to retain their ability to "walk-away" if they cannot reach
an agreement. What is the next best step for Cindy and her insurer? -
correct answer - mediation
9. How is the power to bind transferred to an adjuster? - correct answer - it
is transferred through a written contract
10. Which of the following statements best describes a part of the
appraisal process?
A. The claimant and the insurer each select an appraiser, and
those two select an umpire.
B. All parties must agree to the final amount in order for it to be
binding.
C. A neutral third party, called the appraiser, plays an advisory role
to help the disputing parties come to a settlement.
D. The opposing parties submit their evidence to the appraiser,
who makes a final and binding decision. - correct answer - A.
The claimant and the insurer each select an appraiser, and
those two select an umpire.
11. Bob's home was severely damaged by a thunderstorm and he claims
it will cost $74,000 to repair. His insurer has investigated the claim,
found the repairs could be done for $49,000, and has offered Bob this
amount of indemnification. Negotiation between Bob and his insurer
seems to be failing. Due to the unpredictability of the result, which of the
following options should be avoided by the insurer if possible?
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A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - correct answer - C. Litigation
12. In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - correct answer - B. The two appraisers
13. Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a fire and it will cost
$185,000 to rebuild it. Stacy's homeowners policy has a limit of
$178,000 and a $1,800 deductible. Typically, how much would Adjuster
Andy calculate Stacy's final settlement amount to be? - correct answer -
$178,000 (because the cost of repairs is more than the policy limit, the
final settlement amount is the full policy limit ($178,000) and the
deductible is absorbed into the amount of the loss that exceeds the limit.
14. Which of the following statements is NOT true of an insurance
adjuster?
A. An insurance adjuster must always use reasonable judgement
for both the insurer and the claimant.
B. An insurance adjuster is an agent.
FLORIDA CERTIFIED ADJUSTER LICENSING
EXAM 2025| BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. Edward is a member of the Knights of Columbus, a religious group
dedicated to voluntary service to the benefit of society. He also recently
purchased a $100,000 life insurance policy from the organization. This
was possible because the Knights of Columbus is: - correct answer - a
fraternal benefit society
2. Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently more
than 30 days late, and has been so five times in the last year, and his
insurer has done nothing about it. When Jason gets into an accident and
files a claim, which of the following is most likely to happen? - correct
answer - The insurer will pay the claim because of the implied waiver
they have made by not cancelling Jason's policy the previous times he
was late with his payments
3. Jared hopes to purchase a new insurance policy for his car, but he has
an extremely poor driving record. The insurance company decides to
issue Jared an insurance policy, but charges him a premium much
higher than the average driver. The insurance company is practicing: -
correct answer - risk reduction
, Page |2
4. Which of the following is NOT a characteristic of insurance contracts?
(aleatory, conditional, unilateral, universal) - correct answer - universal
5. A few weeks ago Christopher's garage was destroyed by an out-of-
control motorist. Fortunately, the motorist had sufficient liability
insurance to cover the damages. However, the insurer insists that
Christopher's garage is worth far less than the appraisals he has
received from contractors. Christopher and the insurer have gone back
and forth in negotiations for weeks, making little headway. Christopher
decides it's time to: - correct answer - issue a complaint against the
policyholder
6. A reciprocal insurer is: - correct answer - an unincorporated organization
of subscribers that operates through an attorney-in-fact to provide
insurance benefits for its members.
7. Bob has been in the construction business a long time and is ready to
retire. He sells the company to his friend Scott and then lets the insurer
know that any claims against his policy should be paid to Scott from now
on. The insurer informs Bob that they cannot do this due to which
condition? - correct answer - assignment
8. Cindy and her insurer cannot reach an agreement for her property claim,
and have gone back and forth for weeks without coming within $10,000
of each other. At this point, since both believe they are offering a fair
settlement, a third party is needed to help facilitate the negotiation. Both
, Page |3
parties still want to retain their ability to "walk-away" if they cannot reach
an agreement. What is the next best step for Cindy and her insurer? -
correct answer - mediation
9. How is the power to bind transferred to an adjuster? - correct answer - it
is transferred through a written contract
10. Which of the following statements best describes a part of the
appraisal process?
A. The claimant and the insurer each select an appraiser, and
those two select an umpire.
B. All parties must agree to the final amount in order for it to be
binding.
C. A neutral third party, called the appraiser, plays an advisory role
to help the disputing parties come to a settlement.
D. The opposing parties submit their evidence to the appraiser,
who makes a final and binding decision. - correct answer - A.
The claimant and the insurer each select an appraiser, and
those two select an umpire.
11. Bob's home was severely damaged by a thunderstorm and he claims
it will cost $74,000 to repair. His insurer has investigated the claim,
found the repairs could be done for $49,000, and has offered Bob this
amount of indemnification. Negotiation between Bob and his insurer
seems to be failing. Due to the unpredictability of the result, which of the
following options should be avoided by the insurer if possible?
, Page |4
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - correct answer - C. Litigation
12. In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - correct answer - B. The two appraisers
13. Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a fire and it will cost
$185,000 to rebuild it. Stacy's homeowners policy has a limit of
$178,000 and a $1,800 deductible. Typically, how much would Adjuster
Andy calculate Stacy's final settlement amount to be? - correct answer -
$178,000 (because the cost of repairs is more than the policy limit, the
final settlement amount is the full policy limit ($178,000) and the
deductible is absorbed into the amount of the loss that exceeds the limit.
14. Which of the following statements is NOT true of an insurance
adjuster?
A. An insurance adjuster must always use reasonable judgement
for both the insurer and the claimant.
B. An insurance adjuster is an agent.
