FLORIDA 3-20 PUBLIC ADJUSTER STATE LICENSE FINAL
EXAM NEWEST ACTUAL EXAM COMPLETE 200 QUESTIONS
AND CORRECT DETAILED ANSWERS
Question 1
Under Florida Statutes, which type of adjuster represents the insured in an
insurance claim?
A) Company Adjuster
B) Independent Adjuster
C) Staff Adjuster
D) Public Adjuster
E) Emergency Adjuster
Correct Answer: D) Public Adjuster
Rationale: A public adjuster is an independent contractor who, for
compensation, acts on behalf of or aids an insured in negotiating for
or effecting the settlement of a claim for loss or damage to
property.
Question 2
What is the primary purpose of Chapter 626, Florida Statutes, regarding
insurance adjusters?
A) To regulate insurance companies only.
B) To establish licensing requirements and ethical standards for adjusters.
C) To set insurance premium rates.
D) To define insurable interests.
E) To manage the solvency of insurance carriers.
Correct Answer: B) To establish licensing requirements and ethical
standards for adjusters.
Rationale: Chapter 626 of the Florida Statutes governs insurance
agents, adjusters, and service representatives, outlining their
licensing, conduct, and disciplinary actions to protect the public.
Question 3
A public adjuster must be licensed by which Florida state entity?
A) Florida Department of Health
,B) Florida Department of Business and Professional Regulation
C) Florida Office of Insurance Regulation
D) Florida Department of Financial Services (DFS)
E) Florida Bar Association
Correct Answer: D) Florida Department of Financial Services (DFS)
Rationale: The Florida Department of Financial Services (DFS) is
responsible for licensing and regulating public adjusters in Florida,
ensuring they meet statutory requirements and uphold ethical
standards.
Question 4
Which of the following acts is considered a prohibited act for a licensed
public adjuster in Florida?
A) Advising an insured to repair a damaged property.
B) Negotiating a settlement for a client.
C) Soliciting a claim within 48 hours of a loss.
D) Charging a fee based on the percentage of the settlement.
E) Notifying the insurer of a new claim.
Correct Answer: C) Soliciting a claim within 48 hours of a loss.
Rationale: Florida Statutes explicitly prohibit public adjusters from
soliciting clients directly or indirectly within 48 hours after a
disaster or loss. This is to protect vulnerable insureds.
Question 5
What is the maximum percentage a public adjuster can charge for a claim
that results from a declared emergency, such as a hurricane?
A) 10%
B) 20%
C) 25%
D) 30%
E) 15%
Correct Answer: A) 10%
,Rationale: Florida Statute 626.854(7) limits the compensation of a
public adjuster for claims resulting from a declared emergency to
10% of the amount of the insurance claim payment made by the
insurer.
Question 6
Within what timeframe must an insured notify their insurer of a claim after a
loss has occurred?
A) 24 hours
B) 48 hours
C) As soon as practicable
D) 7 days
E) 30 days
Correct Answer: C) As soon as practicable
Rationale: Most insurance policies require the insured to give prompt
notice of a loss, typically stated as "as soon as practicable" or
"without unreasonable delay."
Question 7
Which type of insurance policy covers the structure of a home, personal
property, and liability for the homeowner?
A) Dwelling Policy (DP-3)
B) Commercial Property Policy
C) Homeowners Policy (HO-3)
D) Renters Insurance (HO-4)
E) Flood Insurance
Correct Answer: C) Homeowners Policy (HO-3)
Rationale: An HO-3 (Special Form) homeowners policy is a common
type that provides broad coverage for the dwelling and other
structures, personal property, loss of use, and personal liability.
Question 8
What does "Actual Cash Value" (ACV) typically mean in an insurance policy?
, A) The cost to repair or replace property with new materials, without
deduction for depreciation.
B) The current market value of the property.
C) The cost to repair or replace property with new materials, less
depreciation.
D) The original purchase price of the property.
E) The insured's deductible amount.
Correct Answer: C) The cost to repair or replace property with new
materials, less depreciation.
Rationale: Actual Cash Value (ACV) is generally defined as
replacement cost minus depreciation. It represents the fair market
value of the property at the time of loss, considering its age,
condition, and obsolescence.
Question 9
"Replacement Cost Value" (RCV) coverage in an insurance policy means:
A) The cost to replace an item with a similar item of current market value.
B) The cost to repair or replace property with new materials of like kind and
quality, without deduction for depreciation.
C) The amount initially paid for the damaged property.
D) The depreciated value of the property.
E) The maximum amount the insurer will pay regardless of actual cost.
Correct Answer: B) The cost to repair or replace property with new
materials of like kind and quality, without deduction for
depreciation.
Rationale: Replacement Cost Value (RCV) coverage pays for the cost
to replace damaged property with new property of similar kind and
quality, without any deduction for depreciation, up to the policy
limit.
Question 10
Which of the following is typically a "named peril" in a basic homeowners
EXAM NEWEST ACTUAL EXAM COMPLETE 200 QUESTIONS
AND CORRECT DETAILED ANSWERS
Question 1
Under Florida Statutes, which type of adjuster represents the insured in an
insurance claim?
A) Company Adjuster
B) Independent Adjuster
C) Staff Adjuster
D) Public Adjuster
E) Emergency Adjuster
Correct Answer: D) Public Adjuster
Rationale: A public adjuster is an independent contractor who, for
compensation, acts on behalf of or aids an insured in negotiating for
or effecting the settlement of a claim for loss or damage to
property.
Question 2
What is the primary purpose of Chapter 626, Florida Statutes, regarding
insurance adjusters?
A) To regulate insurance companies only.
B) To establish licensing requirements and ethical standards for adjusters.
C) To set insurance premium rates.
D) To define insurable interests.
E) To manage the solvency of insurance carriers.
Correct Answer: B) To establish licensing requirements and ethical
standards for adjusters.
Rationale: Chapter 626 of the Florida Statutes governs insurance
agents, adjusters, and service representatives, outlining their
licensing, conduct, and disciplinary actions to protect the public.
Question 3
A public adjuster must be licensed by which Florida state entity?
A) Florida Department of Health
,B) Florida Department of Business and Professional Regulation
C) Florida Office of Insurance Regulation
D) Florida Department of Financial Services (DFS)
E) Florida Bar Association
Correct Answer: D) Florida Department of Financial Services (DFS)
Rationale: The Florida Department of Financial Services (DFS) is
responsible for licensing and regulating public adjusters in Florida,
ensuring they meet statutory requirements and uphold ethical
standards.
Question 4
Which of the following acts is considered a prohibited act for a licensed
public adjuster in Florida?
A) Advising an insured to repair a damaged property.
B) Negotiating a settlement for a client.
C) Soliciting a claim within 48 hours of a loss.
D) Charging a fee based on the percentage of the settlement.
E) Notifying the insurer of a new claim.
Correct Answer: C) Soliciting a claim within 48 hours of a loss.
Rationale: Florida Statutes explicitly prohibit public adjusters from
soliciting clients directly or indirectly within 48 hours after a
disaster or loss. This is to protect vulnerable insureds.
Question 5
What is the maximum percentage a public adjuster can charge for a claim
that results from a declared emergency, such as a hurricane?
A) 10%
B) 20%
C) 25%
D) 30%
E) 15%
Correct Answer: A) 10%
,Rationale: Florida Statute 626.854(7) limits the compensation of a
public adjuster for claims resulting from a declared emergency to
10% of the amount of the insurance claim payment made by the
insurer.
Question 6
Within what timeframe must an insured notify their insurer of a claim after a
loss has occurred?
A) 24 hours
B) 48 hours
C) As soon as practicable
D) 7 days
E) 30 days
Correct Answer: C) As soon as practicable
Rationale: Most insurance policies require the insured to give prompt
notice of a loss, typically stated as "as soon as practicable" or
"without unreasonable delay."
Question 7
Which type of insurance policy covers the structure of a home, personal
property, and liability for the homeowner?
A) Dwelling Policy (DP-3)
B) Commercial Property Policy
C) Homeowners Policy (HO-3)
D) Renters Insurance (HO-4)
E) Flood Insurance
Correct Answer: C) Homeowners Policy (HO-3)
Rationale: An HO-3 (Special Form) homeowners policy is a common
type that provides broad coverage for the dwelling and other
structures, personal property, loss of use, and personal liability.
Question 8
What does "Actual Cash Value" (ACV) typically mean in an insurance policy?
, A) The cost to repair or replace property with new materials, without
deduction for depreciation.
B) The current market value of the property.
C) The cost to repair or replace property with new materials, less
depreciation.
D) The original purchase price of the property.
E) The insured's deductible amount.
Correct Answer: C) The cost to repair or replace property with new
materials, less depreciation.
Rationale: Actual Cash Value (ACV) is generally defined as
replacement cost minus depreciation. It represents the fair market
value of the property at the time of loss, considering its age,
condition, and obsolescence.
Question 9
"Replacement Cost Value" (RCV) coverage in an insurance policy means:
A) The cost to replace an item with a similar item of current market value.
B) The cost to repair or replace property with new materials of like kind and
quality, without deduction for depreciation.
C) The amount initially paid for the damaged property.
D) The depreciated value of the property.
E) The maximum amount the insurer will pay regardless of actual cost.
Correct Answer: B) The cost to repair or replace property with new
materials of like kind and quality, without deduction for
depreciation.
Rationale: Replacement Cost Value (RCV) coverage pays for the cost
to replace damaged property with new property of similar kind and
quality, without any deduction for depreciation, up to the policy
limit.
Question 10
Which of the following is typically a "named peril" in a basic homeowners
