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Florida 3-20 Public Adjusters State Exam ACTUAL EXAM
2026-2027 COMPLETE 200 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
1. What type of contract is an insurance policy because only the insurer makes a legally
enforceable promise?
A. Conditional
B. Aleatory
C. Unilateral
D. Executory
✅ Correct Answer: C. Unilateral
Rationale: Only the insurer promises to pay covered losses; the insured is not required to file a
claim.
2. Which party hires a public adjuster?
A. The insurance company
B. The Department of Financial Services
C. The insured
D. The reinsurer
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✅ Correct Answer: C. The insured
Rationale: A public adjuster represents the policyholder, not the insurer, and works exclusively
in the insured’s interest.
3. Which principle prevents an insured from profiting from a loss?
A. Insurable interest
B. Subrogation
C. Indemnity
D. Proximate cause
✅ Correct Answer: C. Indemnity
Rationale: Indemnity restores the insured to their financial position prior to loss—no gain
allowed.
4. Which hazard results from poor maintenance of property?
A. Moral hazard
B. Morale hazard
C. Legal hazard
D. Physical hazard
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✅ Correct Answer: D. Physical hazard
Rationale: Unsafe physical conditions (e.g., faulty wiring) increase the likelihood of loss.
5. What must exist at the time of loss for a policy to respond?
A. Proximate cause
B. Deductible
C. Insurable interest
D. Subrogation
✅ Correct Answer: C. Insurable interest
Rationale: The insured must suffer a financial loss when the damage occurs.
6. Which type of risk involves the possibility of loss only?
A. Speculative
B. Pure
C. Financial
D. Dynamic
✅ Correct Answer: B. Pure
Rationale: Insurance only covers pure risks, not speculative risks that involve gain or loss.
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7. A loss caused by fire leading to smoke damage is an example of:
A. Concurrent causation
B. Remote cause
C. Proximate cause
D. Intervening cause
✅ Correct Answer: C. Proximate cause
Rationale: The fire is the dominant cause that set the chain of events in motion.
8. What policy provision transfers the insured’s rights to the insurer after payment of a loss?
A. Assignment
B. Contribution
C. Subrogation
D. Indemnity
✅ Correct Answer: C. Subrogation
Rationale: Allows the insurer to recover from negligent third parties.
9. Which coverage applies when a government order prevents access to insured property?
Florida 3-20 Public Adjusters State Exam ACTUAL EXAM
2026-2027 COMPLETE 200 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
1. What type of contract is an insurance policy because only the insurer makes a legally
enforceable promise?
A. Conditional
B. Aleatory
C. Unilateral
D. Executory
✅ Correct Answer: C. Unilateral
Rationale: Only the insurer promises to pay covered losses; the insured is not required to file a
claim.
2. Which party hires a public adjuster?
A. The insurance company
B. The Department of Financial Services
C. The insured
D. The reinsurer
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✅ Correct Answer: C. The insured
Rationale: A public adjuster represents the policyholder, not the insurer, and works exclusively
in the insured’s interest.
3. Which principle prevents an insured from profiting from a loss?
A. Insurable interest
B. Subrogation
C. Indemnity
D. Proximate cause
✅ Correct Answer: C. Indemnity
Rationale: Indemnity restores the insured to their financial position prior to loss—no gain
allowed.
4. Which hazard results from poor maintenance of property?
A. Moral hazard
B. Morale hazard
C. Legal hazard
D. Physical hazard
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✅ Correct Answer: D. Physical hazard
Rationale: Unsafe physical conditions (e.g., faulty wiring) increase the likelihood of loss.
5. What must exist at the time of loss for a policy to respond?
A. Proximate cause
B. Deductible
C. Insurable interest
D. Subrogation
✅ Correct Answer: C. Insurable interest
Rationale: The insured must suffer a financial loss when the damage occurs.
6. Which type of risk involves the possibility of loss only?
A. Speculative
B. Pure
C. Financial
D. Dynamic
✅ Correct Answer: B. Pure
Rationale: Insurance only covers pure risks, not speculative risks that involve gain or loss.
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7. A loss caused by fire leading to smoke damage is an example of:
A. Concurrent causation
B. Remote cause
C. Proximate cause
D. Intervening cause
✅ Correct Answer: C. Proximate cause
Rationale: The fire is the dominant cause that set the chain of events in motion.
8. What policy provision transfers the insured’s rights to the insurer after payment of a loss?
A. Assignment
B. Contribution
C. Subrogation
D. Indemnity
✅ Correct Answer: C. Subrogation
Rationale: Allows the insurer to recover from negligent third parties.
9. Which coverage applies when a government order prevents access to insured property?
