Florida Certified Adjuster Practice Exam
Questions to Review 2025/2026 Exam
Questions and Answers | 100% Pass
A reciprocal insurer is: - 🧠 ANSWER ✔✔*an unincorporated organization of
subscribers that operates through an
attorney-in-fact to provide insurance
benefits for its members.
A captive insurance company: - 🧠 ANSWER ✔✔*exists solely to provide
insurance for
its parent company.
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.
1
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Sine Nomine Insurance could be best described as a: - 🧠 ANSWER
✔✔*mutual insurance company.
Which of the following situations does NOT involve an insurable
risk? - 🧠 ANSWER ✔✔*Dale just bought 30 shares of a hot
new startup company online.
Six Stars Development Company has just been offered a great
deal on ten large properties in Las Vegas. The economy in Las
Vegas has been declining recently, but the CEO of Six Stars
expects it to recover soon. This could be an exceptional
opportunity for Six Stars, but it's also pretty risky. Ultimately, the
Six Stars executive team decides not to purchase the properties.
This is an example of: - 🧠 ANSWER ✔✔*risk avoidance.
Six Stars Development Company has just purchased several large
properties in Las Vegas. As a result of this large purchase, they
are a little short on money and decide to save money by not
purchasing insurance on their new properties. Six Stars is
2
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,practicing: - 🧠 ANSWER ✔✔*risk retention.
In order to qualify for an insurance policy, Lydia's Fine Jewels must agree
to have a security guard on the premises 24/7. This is called a: - 🧠
ANSWER ✔✔*warranty
Which of the following statements about the principle of estoppel is
TRUE? - 🧠 ANSWER ✔✔*Estoppel protects the insured party
from an insurer who initially approves
coverage, but then later denies
coverage after the insured pays for
repairs.
Which of the following statements about a moral hazard is FALSE? - 🧠
ANSWER ✔✔*It is the result of an unconscious
behavior.
James is walking down the street when Andrea, an uninsured
motorist, strikes him with her car. James suffers $12,000 in injuries
from the accident. He has personal injury protection of $10,000
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, from his own automobile insurance policy, which immediately pays
him the full amount. By accepting $10,000 from his own insurance
company, James has waived the right to sue Andrea for more than
_____ for personal injury. - 🧠 ANSWER ✔✔*$2,000
Sally throws a cigarette butt into Neal's dumpster, starting a fire on
Neal's property that costs him $10,000. Neal files a claim with his
insurer. The insurer pays Neal and then demands $10,000 from
Sally to pay for the loss she caused. What gives the insurer the
right to collect payment from Sally? - 🧠 ANSWER ✔✔*Subrogation
Jerry is using an expensive video recorder near the family pool
when he slips and falls in, destroying the camera. Jerry bought the
camera three years ago for $4,000, and it depreciates at $500 per
year. A new, similar camera costs $5,000 today. Assuming the
loss is covered, if Jerry had a replacement cost policy, how much
would Jerry's insurer indemnify Jerry for the destroyed camera? - 🧠
ANSWER ✔✔*$5,000
4
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions to Review 2025/2026 Exam
Questions and Answers | 100% Pass
A reciprocal insurer is: - 🧠 ANSWER ✔✔*an unincorporated organization of
subscribers that operates through an
attorney-in-fact to provide insurance
benefits for its members.
A captive insurance company: - 🧠 ANSWER ✔✔*exists solely to provide
insurance for
its parent company.
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.
1
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Sine Nomine Insurance could be best described as a: - 🧠 ANSWER
✔✔*mutual insurance company.
Which of the following situations does NOT involve an insurable
risk? - 🧠 ANSWER ✔✔*Dale just bought 30 shares of a hot
new startup company online.
Six Stars Development Company has just been offered a great
deal on ten large properties in Las Vegas. The economy in Las
Vegas has been declining recently, but the CEO of Six Stars
expects it to recover soon. This could be an exceptional
opportunity for Six Stars, but it's also pretty risky. Ultimately, the
Six Stars executive team decides not to purchase the properties.
This is an example of: - 🧠 ANSWER ✔✔*risk avoidance.
Six Stars Development Company has just purchased several large
properties in Las Vegas. As a result of this large purchase, they
are a little short on money and decide to save money by not
purchasing insurance on their new properties. Six Stars is
2
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,practicing: - 🧠 ANSWER ✔✔*risk retention.
In order to qualify for an insurance policy, Lydia's Fine Jewels must agree
to have a security guard on the premises 24/7. This is called a: - 🧠
ANSWER ✔✔*warranty
Which of the following statements about the principle of estoppel is
TRUE? - 🧠 ANSWER ✔✔*Estoppel protects the insured party
from an insurer who initially approves
coverage, but then later denies
coverage after the insured pays for
repairs.
Which of the following statements about a moral hazard is FALSE? - 🧠
ANSWER ✔✔*It is the result of an unconscious
behavior.
James is walking down the street when Andrea, an uninsured
motorist, strikes him with her car. James suffers $12,000 in injuries
from the accident. He has personal injury protection of $10,000
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, from his own automobile insurance policy, which immediately pays
him the full amount. By accepting $10,000 from his own insurance
company, James has waived the right to sue Andrea for more than
_____ for personal injury. - 🧠 ANSWER ✔✔*$2,000
Sally throws a cigarette butt into Neal's dumpster, starting a fire on
Neal's property that costs him $10,000. Neal files a claim with his
insurer. The insurer pays Neal and then demands $10,000 from
Sally to pay for the loss she caused. What gives the insurer the
right to collect payment from Sally? - 🧠 ANSWER ✔✔*Subrogation
Jerry is using an expensive video recorder near the family pool
when he slips and falls in, destroying the camera. Jerry bought the
camera three years ago for $4,000, and it depreciates at $500 per
year. A new, similar camera costs $5,000 today. Assuming the
loss is covered, if Jerry had a replacement cost policy, how much
would Jerry's insurer indemnify Jerry for the destroyed camera? - 🧠
ANSWER ✔✔*$5,000
4
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
