Page | 1
FLORIDA CERTIFIED ADJUSTER
LICENSING EXAM 2025 WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS
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.
FLORIDA CERTIFIED ADJUSTER
LICENSING EXAM 2025 WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS
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.
