Fall Semester 2026–2027 Florida 3-20 Public Adjuster License Updated
2026 | 190+ Questions and Answers | Florida 3-20 Public Adjuster
License Exam Prep, Comprehensive Study Guide, Practice Exam, Test
Bank, Property Insurance, Claims Handling, Adjusting Practices, Florida
Insurance Laws, Ethics, Policy Coverage, Property Damage Assessment,
Settlement Procedures, Detailed Rationales and Complete Revision
Material
Question 1: A public adjuster in Florida is defined as an adjuster who represents
the interests of which party in an insurance claim?
A. The insurance company
B. The Department of Financial Services
C. The named insured or policyholder
D. The reinsurer
CORRECT ANSWER: C. The named insured or policyholder
Rationale: A public adjuster is specifically defined as an adjuster who represents the
interests of the named insured or policyholder, not the insurer. They work exclusively on
behalf of the insured in negotiating and settling insurance claims .
Question 2: Under Florida law, what is the maximum fee a public adjuster can
charge for a non-emergency claim?
A. 5% of the settlement
B. 10% of the settlement
C. 15% of the settlement
D. 20% of the settlement
CORRECT ANSWER: D. 20% of the settlement
Rationale: Florida law caps public adjuster compensation at 20% of the claim
settlement for non-emergency claims. Different percentages may apply during declared
emergencies .
Question 3: Which type of insurance contract is described as "take it or leave it"
because the insured has little to no ability to negotiate the terms?
A. Contract of adhesion
B. Aleatory contract
C. Conditional contract
D. Unilateral contract
CORRECT ANSWER: A. Contract of adhesion
,Rationale: An insurance policy is a contract of adhesion because it is drafted by the
insurer and presented to the insured on a take-it-or-leave-it basis. The insured has little
opportunity to negotiate the terms .
Question 4: The principle that prevents an insured from profiting from an insurance
loss is known as:
A. Subrogation
B. Indemnity
C. Insurable interest
D. Proximate cause
CORRECT ANSWER: B. Indemnity
Rationale: The principle of indemnity ensures that the insured is restored to the
financial position they were in before the loss occurred. It prevents the insured from
making a profit from the claim .
Question 5: What is the minimum age requirement for an applicant to obtain a
nonresident public adjuster license in Florida?
A. 18 years old
B. 21 years old
C. 25 years old
D. There is no age requirement
CORRECT ANSWER: A. 18 years old
Rationale: According to Florida Statute 626.8732, an applicant for a nonresident public
adjuster license must be a natural person at least 18 years of age .
Question 6: A loss caused by fire, which then leads to smoke damage, is an
example of which insurance concept?
A. Concurrent causation
B. Remote cause
C. Proximate cause
D. Intervening cause
CORRECT ANSWER: C. Proximate cause
Rationale: Proximate cause is the dominant or efficient cause that sets a chain of
events in motion, resulting in a loss. The fire is the proximate cause of both the fire
damage and the subsequent smoke damage .
,Question 7: Which of the following is NOT a required element for an insurance
contract to be legally enforceable?
A. Consideration
B. Offer and acceptance
C. Equal bargaining power between parties
D. Competent parties
CORRECT ANSWER: C. Equal bargaining power between parties
Rationale: The elements of a valid contract include offer and acceptance,
consideration, competent parties, and legal purpose. Equal bargaining power is not
required for an insurance contract to be enforceable .
Question 8: What is the bond amount required for a nonresident public adjuster
license in Florida?
A. $10,000
B. $25,000
C. $50,000
D. $100,000
CORRECT ANSWER: C. $50,000
Rationale: Florida Statute 626.8732 requires nonresident public adjuster applicants to
file a bond in the amount of $50,000, conditioned for the faithful performance of their
duties .
Question 9: The provision in an insurance policy that allows the insurer to take over
the insured's rights to recover damages from a negligent third party is called:
A. Assignment
B. Subrogation
C. Contribution
D. Liberalization
CORRECT ANSWER: B. Subrogation
Rationale: Subrogation is the legal right of the insurer to pursue recovery from a third
party who caused the loss, after the insurer has paid the claim to the insured. This
prevents the insured from collecting twice .
Question 10: A hazard that results from an insured's conscious decision to act in a
way that increases the likelihood of a loss because they have insurance is known
as:
, A. Physical hazard
B. Morale hazard
C. Moral hazard
D. Legal hazard
CORRECT ANSWER: C. Moral hazard
Rationale: Moral hazard arises from an insured's deliberate actions or dishonesty, such
as exaggerating a claim or engaging in behavior that increases risk because they know
they are insured .
Question 11: Which section of an insurance policy contains the named insured,
policy limits, coverage types, and premium amounts?
A. Insuring Agreement
B. Declarations
C. Conditions
D. Exclusions
CORRECT ANSWER: B. Declarations
Rationale: The Declarations page is the section of the policy that identifies the insured,
describes the property covered, lists the coverage limits, and states the policy
premium .
Question 12: How long must a nonresident public adjuster retain records pertaining
to transactions under their license?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
CORRECT ANSWER: C. 3 years
Rationale: Florida Statute 626.8732 requires nonresident public adjusters to retain the
usual and customary records pertaining to transactions under their license for at least 3
years after completion of the adjustment .
Question 13: An insurer that is domiciled in Florida is considered what type of
insurer when operating in Florida?
A. Domestic
B. Foreign
2026 | 190+ Questions and Answers | Florida 3-20 Public Adjuster
License Exam Prep, Comprehensive Study Guide, Practice Exam, Test
Bank, Property Insurance, Claims Handling, Adjusting Practices, Florida
Insurance Laws, Ethics, Policy Coverage, Property Damage Assessment,
Settlement Procedures, Detailed Rationales and Complete Revision
Material
Question 1: A public adjuster in Florida is defined as an adjuster who represents
the interests of which party in an insurance claim?
A. The insurance company
B. The Department of Financial Services
C. The named insured or policyholder
D. The reinsurer
CORRECT ANSWER: C. The named insured or policyholder
Rationale: A public adjuster is specifically defined as an adjuster who represents the
interests of the named insured or policyholder, not the insurer. They work exclusively on
behalf of the insured in negotiating and settling insurance claims .
Question 2: Under Florida law, what is the maximum fee a public adjuster can
charge for a non-emergency claim?
A. 5% of the settlement
B. 10% of the settlement
C. 15% of the settlement
D. 20% of the settlement
CORRECT ANSWER: D. 20% of the settlement
Rationale: Florida law caps public adjuster compensation at 20% of the claim
settlement for non-emergency claims. Different percentages may apply during declared
emergencies .
Question 3: Which type of insurance contract is described as "take it or leave it"
because the insured has little to no ability to negotiate the terms?
A. Contract of adhesion
B. Aleatory contract
C. Conditional contract
D. Unilateral contract
CORRECT ANSWER: A. Contract of adhesion
,Rationale: An insurance policy is a contract of adhesion because it is drafted by the
insurer and presented to the insured on a take-it-or-leave-it basis. The insured has little
opportunity to negotiate the terms .
Question 4: The principle that prevents an insured from profiting from an insurance
loss is known as:
A. Subrogation
B. Indemnity
C. Insurable interest
D. Proximate cause
CORRECT ANSWER: B. Indemnity
Rationale: The principle of indemnity ensures that the insured is restored to the
financial position they were in before the loss occurred. It prevents the insured from
making a profit from the claim .
Question 5: What is the minimum age requirement for an applicant to obtain a
nonresident public adjuster license in Florida?
A. 18 years old
B. 21 years old
C. 25 years old
D. There is no age requirement
CORRECT ANSWER: A. 18 years old
Rationale: According to Florida Statute 626.8732, an applicant for a nonresident public
adjuster license must be a natural person at least 18 years of age .
Question 6: A loss caused by fire, which then leads to smoke damage, is an
example of which insurance concept?
A. Concurrent causation
B. Remote cause
C. Proximate cause
D. Intervening cause
CORRECT ANSWER: C. Proximate cause
Rationale: Proximate cause is the dominant or efficient cause that sets a chain of
events in motion, resulting in a loss. The fire is the proximate cause of both the fire
damage and the subsequent smoke damage .
,Question 7: Which of the following is NOT a required element for an insurance
contract to be legally enforceable?
A. Consideration
B. Offer and acceptance
C. Equal bargaining power between parties
D. Competent parties
CORRECT ANSWER: C. Equal bargaining power between parties
Rationale: The elements of a valid contract include offer and acceptance,
consideration, competent parties, and legal purpose. Equal bargaining power is not
required for an insurance contract to be enforceable .
Question 8: What is the bond amount required for a nonresident public adjuster
license in Florida?
A. $10,000
B. $25,000
C. $50,000
D. $100,000
CORRECT ANSWER: C. $50,000
Rationale: Florida Statute 626.8732 requires nonresident public adjuster applicants to
file a bond in the amount of $50,000, conditioned for the faithful performance of their
duties .
Question 9: The provision in an insurance policy that allows the insurer to take over
the insured's rights to recover damages from a negligent third party is called:
A. Assignment
B. Subrogation
C. Contribution
D. Liberalization
CORRECT ANSWER: B. Subrogation
Rationale: Subrogation is the legal right of the insurer to pursue recovery from a third
party who caused the loss, after the insurer has paid the claim to the insured. This
prevents the insured from collecting twice .
Question 10: A hazard that results from an insured's conscious decision to act in a
way that increases the likelihood of a loss because they have insurance is known
as:
, A. Physical hazard
B. Morale hazard
C. Moral hazard
D. Legal hazard
CORRECT ANSWER: C. Moral hazard
Rationale: Moral hazard arises from an insured's deliberate actions or dishonesty, such
as exaggerating a claim or engaging in behavior that increases risk because they know
they are insured .
Question 11: Which section of an insurance policy contains the named insured,
policy limits, coverage types, and premium amounts?
A. Insuring Agreement
B. Declarations
C. Conditions
D. Exclusions
CORRECT ANSWER: B. Declarations
Rationale: The Declarations page is the section of the policy that identifies the insured,
describes the property covered, lists the coverage limits, and states the policy
premium .
Question 12: How long must a nonresident public adjuster retain records pertaining
to transactions under their license?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
CORRECT ANSWER: C. 3 years
Rationale: Florida Statute 626.8732 requires nonresident public adjusters to retain the
usual and customary records pertaining to transactions under their license for at least 3
years after completion of the adjustment .
Question 13: An insurer that is domiciled in Florida is considered what type of
insurer when operating in Florida?
A. Domestic
B. Foreign
