Florida Adjusters License Exam
2025/2026 Exam Questions Marking
Scheme New Update | A+ Rated
When Sally applies for an auto policy, her agent issues her a ________ so
that she can benefit from insurance protection while he underwrites the
policy. - 🧠 ANSWER ✔✔Binder
When an insurer buys insurance to reduce its exposure to loss, this is
called - 🧠 ANSWER ✔✔Reinsurance
Reinsurance - 🧠 ANSWER ✔✔insurance for insurers; it helps reduce their
exposure to losses
Emma is found guilty of arson causing 175,000 in damages to her home,
which still has 155,000 left on her mortgage at the time of the fire. Under
her mortgage clause, Emma's mortgage lender can recoup: - 🧠 ANSWER
✔✔155,000 of insurable interests - the amount left outstanding on the loan
An "occurrence" is defined as: - 🧠 ANSWER ✔✔an unexpected event that
causes loss.
1
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Replacement Cost Value: - 🧠 ANSWER ✔✔Under replacement cost
valuation, insurers may safeguard the principle of indemnity by requiring
policy holders to replace insured items before making full reparations
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a
publicly traded company, and Cindy can participate in the election of the
board, receiving dividends if the company does well. Sine Nomine
Insurance could be best described as a: - 🧠 ANSWER ✔✔Mutual Insurance
Company
Loss of Money invested in the stock market is a - 🧠 ANSWER
✔✔speculative risk
When taking recorded witness statements, the adjuster should - 🧠
ANSWER ✔✔Remain Objective
Coinsurance Policy - 🧠 ANSWER ✔✔requires you to have a minimum of
80% minimum, if you do not comply there is a penalty
Coinsurance Penalty Formula - 🧠 ANSWER ✔✔dividing the amount of
coverage one should have by how much they do have.
EX: they should have 80% (96,000) , they do have (40,000).
40,000/96,000= 41.67%
2
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,then apply that to the perceived cost of indemnity before the penalty.
12,000 x 41.67% = 5,000
They will receive 5,000 dollars
Standard Fire Policy Pays - 🧠 ANSWER ✔✔Actual Cash Value
Stan built a porch for his home three years ago at a cost of $10,000. The
value of the porch has depreciated by $6,000, and it would cost $12,000 to
replace it today. After Stan's porch burnt down during a BBQ today, how
much would a Standard Fire Policy indemnify Stan for his porch? - 🧠
ANSWER ✔✔12,000 - 6,000 = 6,000
he will receive 6,000 because standard fire pays actual cash value
John moved out of his home 3 months ago and put it up for sale. While
waiting for it to sell, the pipes burst and damage the floors due to freezing.
This is not covered - 🧠 ANSWER ✔✔freezing is a covered peril but is
excluded if the building is vacant and the insured has not taken responsible
care to maintain heat or shut off the water supply
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, DP-2 Broad Form covers what under the peril of theft? - 🧠 ANSWER
✔✔Broken windows caused by the burglar breaking in
Which of the following is covered under a DP-3
a. earthquake
b. flood
c. water backup from sewers
4. Power failure on premises - 🧠 ANSWER ✔✔Power failure on-premises
In a dwelling policies, coverage D pays for - 🧠 ANSWER ✔✔Lost Rental
Income
If a Florida HO policy has been in effect for fewer than 90 days For
nonpayment-related cancelation the insurer must notify the policyholder at
least: - 🧠 ANSWER ✔✔10 days before cancelling
If a Florida HO policy has been in effect for fewer than 90 days for any
other approved reason the policy holder must be notified at least - 🧠
ANSWER ✔✔20 days before cancelling
4
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
2025/2026 Exam Questions Marking
Scheme New Update | A+ Rated
When Sally applies for an auto policy, her agent issues her a ________ so
that she can benefit from insurance protection while he underwrites the
policy. - 🧠 ANSWER ✔✔Binder
When an insurer buys insurance to reduce its exposure to loss, this is
called - 🧠 ANSWER ✔✔Reinsurance
Reinsurance - 🧠 ANSWER ✔✔insurance for insurers; it helps reduce their
exposure to losses
Emma is found guilty of arson causing 175,000 in damages to her home,
which still has 155,000 left on her mortgage at the time of the fire. Under
her mortgage clause, Emma's mortgage lender can recoup: - 🧠 ANSWER
✔✔155,000 of insurable interests - the amount left outstanding on the loan
An "occurrence" is defined as: - 🧠 ANSWER ✔✔an unexpected event that
causes loss.
1
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Replacement Cost Value: - 🧠 ANSWER ✔✔Under replacement cost
valuation, insurers may safeguard the principle of indemnity by requiring
policy holders to replace insured items before making full reparations
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a
publicly traded company, and Cindy can participate in the election of the
board, receiving dividends if the company does well. Sine Nomine
Insurance could be best described as a: - 🧠 ANSWER ✔✔Mutual Insurance
Company
Loss of Money invested in the stock market is a - 🧠 ANSWER
✔✔speculative risk
When taking recorded witness statements, the adjuster should - 🧠
ANSWER ✔✔Remain Objective
Coinsurance Policy - 🧠 ANSWER ✔✔requires you to have a minimum of
80% minimum, if you do not comply there is a penalty
Coinsurance Penalty Formula - 🧠 ANSWER ✔✔dividing the amount of
coverage one should have by how much they do have.
EX: they should have 80% (96,000) , they do have (40,000).
40,000/96,000= 41.67%
2
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,then apply that to the perceived cost of indemnity before the penalty.
12,000 x 41.67% = 5,000
They will receive 5,000 dollars
Standard Fire Policy Pays - 🧠 ANSWER ✔✔Actual Cash Value
Stan built a porch for his home three years ago at a cost of $10,000. The
value of the porch has depreciated by $6,000, and it would cost $12,000 to
replace it today. After Stan's porch burnt down during a BBQ today, how
much would a Standard Fire Policy indemnify Stan for his porch? - 🧠
ANSWER ✔✔12,000 - 6,000 = 6,000
he will receive 6,000 because standard fire pays actual cash value
John moved out of his home 3 months ago and put it up for sale. While
waiting for it to sell, the pipes burst and damage the floors due to freezing.
This is not covered - 🧠 ANSWER ✔✔freezing is a covered peril but is
excluded if the building is vacant and the insured has not taken responsible
care to maintain heat or shut off the water supply
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, DP-2 Broad Form covers what under the peril of theft? - 🧠 ANSWER
✔✔Broken windows caused by the burglar breaking in
Which of the following is covered under a DP-3
a. earthquake
b. flood
c. water backup from sewers
4. Power failure on premises - 🧠 ANSWER ✔✔Power failure on-premises
In a dwelling policies, coverage D pays for - 🧠 ANSWER ✔✔Lost Rental
Income
If a Florida HO policy has been in effect for fewer than 90 days For
nonpayment-related cancelation the insurer must notify the policyholder at
least: - 🧠 ANSWER ✔✔10 days before cancelling
If a Florida HO policy has been in effect for fewer than 90 days for any
other approved reason the policy holder must be notified at least - 🧠
ANSWER ✔✔20 days before cancelling
4
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
