FL Adjuster Exam (WebCE) – Practice
Questions & Answers | Latest Update 2026 |
Exam Prep PDF | Graded A+
Malcolm Enterprises sustains a serious fire loss to its factory. Operations are
suspended for several weeks while repairs are made. During this time, Malcolm
Enterprises cannot produce the goods they sell and will lose considerable income. How
would you describe the loss of income?
A. proximate loss
B. direct loss
C. covered loss
D. indirect loss - correct answerD. indirect loss
Which of the following is a requirement to operate as an insurance agency in Florida?
A. appointment of at least two agents to manage the agency
B. obtaining a license or registration from the state
C. submitting an application and appointing the Office as its agent for service of process
D. having transacted insurance in Florida for at least two years before applying for a
license - correct answerB. obtaining a license or registration from the state
The Department cannot suspend or revoke an adjuster's license for which of the
following reasons?
A. failing to meet projected sales goals
B. violating the Code of Ethics
C. engaging in rebating
D. intentionally violating the insurance laws - correct answerA. failing to meet projected
sales goals
How do public adjusters primarily differ from staff or independent adjusters?
A. Public adjusters represent insureds, while other adjusters represent insurers.
B. Public adjusters are government employees.
C. Public adjusters work only with claims below a certain value.
D. Public adjusters specialize in certain claims. - correct answerA. Public adjusters
represent insureds, while other adjusters represent insurers.
Which of the following activities does not violate the insurance code?
A. telling clients that an agent holds a chartered financial consultant (ChFC) designation
B. offering to share a commission if a client buys several insurance policies
,C. charging a fee that is more than the premium stated in the policy
D. telling clients that an agent is certified to provide specialized financial advice to
senior citizens - correct answerA. telling clients that an agent holds a chartered financial
consultant (ChFC) designation
A customer slips and falls on a wet floor in a store, and incurs damages consisting of
emergency room charges, doctor bills, X-rays, and lost earnings from her job when she
couldn't work for two weeks. All of these are examples of:
A. general damages
B. punitive damages
C. special damages
D. speculative damages - correct answerC. special damages
Insurers must keep records of their insurance transactions for how many years after the
transaction was completed?
A. five
B. four
C. three
D. two - correct answerA. five
Steam boiler explosions are covered under which of the following types of property
insurance policies?
A. mechanical breakdown policy
B. equipment breakdown policy
C. flood insurance policy
D. ordinance or law endorsement - correct answerB. equipment breakdown policy
A liability adjuster has each of the following duties EXCEPT:
A. to protect the insured
B. to treat the claimant fairly
C. to represent the interests of the insurer
D. to prosecute the party that caused the loss - correct answerD. to prosecute the party
that caused the loss
BBX Insurers terminated Henry's appointment as its adjuster on December 1. How long
will Henry remain eligible to be appointed as an adjuster by another insurer?
A. 12 months
B. 24 months
C. 36 months
D. 48 months - correct answerD. 48 months
,To avoid the appearance of practicing law, a claims adjuster's communications with an
insured should always be
A. limited to interpretations of the policy
B. reviewed by an attorney
C. limited to the wording of the policy
D. supported by references to the law - correct answerC. limited to the wording of the
policy
When dealing with insurance policies, a producer's false statement of material fact is
called a:
A. misrepresentation
B. fraudulent representation
C. act of concealment
D. false promise - correct answerA. misrepresentation
Insurance companies and policyholders rely on the honesty and disclosures of the other
party when negotiating the sale of insurance policies, which is why insurance policies
are considered to be contracts of:
A. actuarial principles
B. utmost good faith
C. honest representation
D. insured integrity - correct answerB. utmost good faith
In a property insurance policy, another term for peril is:
A. physical hazard
B. moral hazard
C. cause of loss
D. morale hazard - correct answerC. cause of loss
All of the following are described in the cancellation provision in property and casualty
insurance policies EXCEPT:
A. why the policy may be canceled
B. who may cancel the policy
C. when the policy may be canceled
D. where the policy may be canceled - correct answerD. where the policy may be
canceled
What term is used to describe the cause of a loss, such as a fire or explosion?
A. hazard
B. exposure
, C. risk
D. peril - correct answerD. peril
When obtaining information about a claim, an adjuster is interested in
A. collecting any and all information about the claim
B. collecting information about the claim that is needed to resolve it
C. finding information most helpful to the insurer
D. finding information most helpful to the claimant - correct answerB. collecting
information about the claim that is needed to resolve it
When insured property is damaged, what must the insured do with it?
A. Abandon it.
B. Surrender it to the insurer.
C. Arrange for its repair or disposal.
D. Sell it as salvage. - correct answerC. Arrange for its repair or disposal.
James is a licensed adjuster who lives in Florida. He moves to Georgia. When must he
notify the Department of Financial Services of his move?
A. within 7 days
B. within 14 days
C. within 21 days
D. within 30 days - correct answerD. within 30 days
The errors and omissions coverage in an equipment breakdown policy is most likely to
apply in which of the following situations?
A. The insurance company mistakenly issued the wrong policy form to the insured.
B. The insurance agency manager mistakenly credited the policy sale to a different
agent than the one who sold the policy.
C. The agent who sold the policy overstated its coverage.
D. The insured made a mistake in describing the property location on the application. -
correct answerD. The insured made a mistake in describing the property location on the
application.
Mr. Cooper requires his office manager to use her car to visit the bank and post office
on a daily basis. What symbol appears on the declarations page of his business auto
policy to provide liability coverage for him when his office manager's car is used for his
business?
A. 1 -- Any Auto
B. 7 -- Specifically Described Autos
C. 8 -- Hired Autos Only
D. 9 -- Non-owned Autos Only - correct answerD. 9 -- Non-owned Autos Only
Questions & Answers | Latest Update 2026 |
Exam Prep PDF | Graded A+
Malcolm Enterprises sustains a serious fire loss to its factory. Operations are
suspended for several weeks while repairs are made. During this time, Malcolm
Enterprises cannot produce the goods they sell and will lose considerable income. How
would you describe the loss of income?
A. proximate loss
B. direct loss
C. covered loss
D. indirect loss - correct answerD. indirect loss
Which of the following is a requirement to operate as an insurance agency in Florida?
A. appointment of at least two agents to manage the agency
B. obtaining a license or registration from the state
C. submitting an application and appointing the Office as its agent for service of process
D. having transacted insurance in Florida for at least two years before applying for a
license - correct answerB. obtaining a license or registration from the state
The Department cannot suspend or revoke an adjuster's license for which of the
following reasons?
A. failing to meet projected sales goals
B. violating the Code of Ethics
C. engaging in rebating
D. intentionally violating the insurance laws - correct answerA. failing to meet projected
sales goals
How do public adjusters primarily differ from staff or independent adjusters?
A. Public adjusters represent insureds, while other adjusters represent insurers.
B. Public adjusters are government employees.
C. Public adjusters work only with claims below a certain value.
D. Public adjusters specialize in certain claims. - correct answerA. Public adjusters
represent insureds, while other adjusters represent insurers.
Which of the following activities does not violate the insurance code?
A. telling clients that an agent holds a chartered financial consultant (ChFC) designation
B. offering to share a commission if a client buys several insurance policies
,C. charging a fee that is more than the premium stated in the policy
D. telling clients that an agent is certified to provide specialized financial advice to
senior citizens - correct answerA. telling clients that an agent holds a chartered financial
consultant (ChFC) designation
A customer slips and falls on a wet floor in a store, and incurs damages consisting of
emergency room charges, doctor bills, X-rays, and lost earnings from her job when she
couldn't work for two weeks. All of these are examples of:
A. general damages
B. punitive damages
C. special damages
D. speculative damages - correct answerC. special damages
Insurers must keep records of their insurance transactions for how many years after the
transaction was completed?
A. five
B. four
C. three
D. two - correct answerA. five
Steam boiler explosions are covered under which of the following types of property
insurance policies?
A. mechanical breakdown policy
B. equipment breakdown policy
C. flood insurance policy
D. ordinance or law endorsement - correct answerB. equipment breakdown policy
A liability adjuster has each of the following duties EXCEPT:
A. to protect the insured
B. to treat the claimant fairly
C. to represent the interests of the insurer
D. to prosecute the party that caused the loss - correct answerD. to prosecute the party
that caused the loss
BBX Insurers terminated Henry's appointment as its adjuster on December 1. How long
will Henry remain eligible to be appointed as an adjuster by another insurer?
A. 12 months
B. 24 months
C. 36 months
D. 48 months - correct answerD. 48 months
,To avoid the appearance of practicing law, a claims adjuster's communications with an
insured should always be
A. limited to interpretations of the policy
B. reviewed by an attorney
C. limited to the wording of the policy
D. supported by references to the law - correct answerC. limited to the wording of the
policy
When dealing with insurance policies, a producer's false statement of material fact is
called a:
A. misrepresentation
B. fraudulent representation
C. act of concealment
D. false promise - correct answerA. misrepresentation
Insurance companies and policyholders rely on the honesty and disclosures of the other
party when negotiating the sale of insurance policies, which is why insurance policies
are considered to be contracts of:
A. actuarial principles
B. utmost good faith
C. honest representation
D. insured integrity - correct answerB. utmost good faith
In a property insurance policy, another term for peril is:
A. physical hazard
B. moral hazard
C. cause of loss
D. morale hazard - correct answerC. cause of loss
All of the following are described in the cancellation provision in property and casualty
insurance policies EXCEPT:
A. why the policy may be canceled
B. who may cancel the policy
C. when the policy may be canceled
D. where the policy may be canceled - correct answerD. where the policy may be
canceled
What term is used to describe the cause of a loss, such as a fire or explosion?
A. hazard
B. exposure
, C. risk
D. peril - correct answerD. peril
When obtaining information about a claim, an adjuster is interested in
A. collecting any and all information about the claim
B. collecting information about the claim that is needed to resolve it
C. finding information most helpful to the insurer
D. finding information most helpful to the claimant - correct answerB. collecting
information about the claim that is needed to resolve it
When insured property is damaged, what must the insured do with it?
A. Abandon it.
B. Surrender it to the insurer.
C. Arrange for its repair or disposal.
D. Sell it as salvage. - correct answerC. Arrange for its repair or disposal.
James is a licensed adjuster who lives in Florida. He moves to Georgia. When must he
notify the Department of Financial Services of his move?
A. within 7 days
B. within 14 days
C. within 21 days
D. within 30 days - correct answerD. within 30 days
The errors and omissions coverage in an equipment breakdown policy is most likely to
apply in which of the following situations?
A. The insurance company mistakenly issued the wrong policy form to the insured.
B. The insurance agency manager mistakenly credited the policy sale to a different
agent than the one who sold the policy.
C. The agent who sold the policy overstated its coverage.
D. The insured made a mistake in describing the property location on the application. -
correct answerD. The insured made a mistake in describing the property location on the
application.
Mr. Cooper requires his office manager to use her car to visit the bank and post office
on a daily basis. What symbol appears on the declarations page of his business auto
policy to provide liability coverage for him when his office manager's car is used for his
business?
A. 1 -- Any Auto
B. 7 -- Specifically Described Autos
C. 8 -- Hired Autos Only
D. 9 -- Non-owned Autos Only - correct answerD. 9 -- Non-owned Autos Only
