FLORIDA 3-20 PUBLIC ADJUSTER EXAM OUTLINES
EXAM QUIZZES WITH ACTUAL RIGHT ANSWERS .
There are several important statutory requirements pertaining to contracts made by public adjusters: -
correct Answers -Must state the type of claim, including an emergency claim, non-emergency claim or
supplemental claim.
Requires the signatures of all named insureds.
If the signatures of all named insureds are not available, the public adjuster must submit an affidavit
signed by the available named insureds attesting that they have authority to enter into the contract and
settle all claim issues on behalf of the named insureds.
An unaltered copy of the contract must be remitted to the insurer within 30 days after execution. This
means the contract provided to the insurer must also contain the agreed upon fee percentage.
True or False: Both mediation and sinkhole neutral evaluation are non-binding. Neither the insured nor
the insurance company is legally obligated to accept the outcome of the mediation conference. - correct
Answers -True
The ______________ is intended for use by parties who are beginning the process of filing suit against
an insurer, when a party feels they have been damaged by specific acts of the insurer. The Notice is
intended to meet a portion of legal requirements set forth in Section 624.155, Florida Statutes, which
requires a party to file Notice with both the insurer and the Department of Financial Services (DFS) at
least 60 days prior to bringing an action against the insurer. The DFS does not involve itself in the pre-
suit negotiations or communications related to Notices as such actions are not within the scope of its
statutory authority. - correct Answers -Civil Remedies Notice
Mediation Statute 627.7015 - correct Answers -The department shall adopt by rule a property insurance
mediation program to be administered by the department or its designee. The department may also
adopt special rules which are applicable in cases of an emergency within the state. The rules shall be
modeled after practices and procedures set forth in mediation rules of procedure adopted by the
Supreme Court. The rules shall provide for:(a) Reasonable requirement for processing and scheduling of
requests for mediation.(b) Qualifications, denial of application, suspension, revocation of approval, and
other penalties for mediators as provided in s. 627.745 and the Florida Rules for Certified and Court-
Appointed Mediators.(c) Provisions governing who may attend mediation conferences.(d) Selection of
mediators.(e) Criteria for the conduct of mediation conferences.(f) Right to legal counsel.
1
,(5) All statements made and documents produced at a mediation conference shall be deemed to be
settlement negotiations in anticipation of litigation within the scope of s. 90.408. All parties to the
mediation must negotiate in good faith and must have the authority to immediately settle the claim.
Mediators are deemed to be agents of the department and shall have the immunity from suit provided
in s. 44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder has 3
business days within which the policyholder may rescind the settlement unless the policyholder has
cashed or deposited any check or draft disbursed to the policyholder for the disputed matters as a result
of the conference. If a settlement agreement is reached and is not rescinded, it is binding and acts as a
release of all specific claims that were presented in that mediation conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report of the re
Code of ethics (FAC 69B-220.201) - correct Answers -The work of adjusting insurance claims engages the
public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the
adjuster's own interests in every instance. ... (b) An adjuster shall treat all claimants equally.
Florida Insurance Guaranty Association - correct Answers -establishes and maintains a service-oriented
operation for processing covered claims of insolvent members. FIGA is a nonprofit corporation created
by the Florida Legislature in 1970. FIGA services pending claims by or against Florida policyholders of
member insurance companies which become insolvent and are ordered liquidated.
The Residential Property and Casualty Joint Underwriting Association originally created by this statute
shall be known as the Citizens Property Insurance Corporation - correct Answers -The corporation shall
provide insurance for residential and commercial property, for applicants who are entitled, but, in good
faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage - correct Answers -We will pay for
"loss" to a covered "auto" or its equipment under:
a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with another
object; or (2) The covered "auto's" overturn.
b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3)
Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision
or derailment of any conveyance transporting the covered "auto".
c. Collision Coverage Caused by: (1) The covered "auto's" collision with another object; or (2) The
covered "auto's" overturn.
2
, Part D - Coverage for damage to your auto - correct Answers -the insurance company agrees to pay an
amount in excess of your deductible for direct and accidental loss to your covered car or any other car
specified in the agreement. Thus, it pays for damage or theft to your car.
627.70131 Insurer's duty to acknowledge communications regarding claims; investigation. - correct
Answers -(1) Upon an insurer's receiving a communication with respect to a claim, the insurer shall,
within 14 calendar days, review and acknowledge receipt of such communication unless payment is
made within that period of time or unless the failure to acknowledge is caused by factors beyond the
control of the insurer which reasonably prevent such acknowledgment. If the acknowledgment is not in
writing, a notification indicating acknowledgment shall be made in the insurer's claim file and dated. A
communication made to or by an agent of an insurer with respect to a claim shall constitute
communication to or by the insurer.
(2) Such acknowledgment shall be responsive to the communication. If the communication constitutes a
notification of a claim, unless the acknowledgment reasonably advises the claimant that the claim
appears not to be covered by the insurer, the acknowledgment shall provide necessary claim forms, and
instructions, including an appropriate telephone number.
(3) Unless otherwise provided by the policy of insurance or by law, within 10 working days after an
insurer receives proof of loss statements, the insurer shall begin such investigation as is reasonably
necessary unless the failure to begin such investigation is caused by factors beyond the control of the
insurer which reasonably prevent the commencement of such investigation.
(4) For purposes of this section, the term "insurer" means any residential property insurer.
(5)(a) Within 90 days after an insurer receives notice of an initial, reopened, or supplemental property
insurance claim from a policyholder, the insurer shall pay or deny such claim or a portion of the claim
unless the failure to pay is caused by factors beyond the control of the insurer which reasonably prevent
such payment. Any payment of an initial or supplemental claim or portion of such
Valuation of Mobile/Manufactured Homes - correct Answers -If the manufactured home's homeowners'
policy has a value on it, and you're in a valued policy state, the insurance company will pay up to the
limit listed on the policy if the home is deemed a total loss.
Some manufactured home policies will have a provision that allows for homes less than a certain age (10
years for example) to be valued at replacement cost. This has been done in part because some
companies recognize that construction methods have changed over the years and that the home is
newer. It's kind of like getting new car replacement on your auto policy, but only for late models.
DP-1 Basic Form - correct Answers -Perils insured against are fire, lightning, and internal explosion.
3
EXAM QUIZZES WITH ACTUAL RIGHT ANSWERS .
There are several important statutory requirements pertaining to contracts made by public adjusters: -
correct Answers -Must state the type of claim, including an emergency claim, non-emergency claim or
supplemental claim.
Requires the signatures of all named insureds.
If the signatures of all named insureds are not available, the public adjuster must submit an affidavit
signed by the available named insureds attesting that they have authority to enter into the contract and
settle all claim issues on behalf of the named insureds.
An unaltered copy of the contract must be remitted to the insurer within 30 days after execution. This
means the contract provided to the insurer must also contain the agreed upon fee percentage.
True or False: Both mediation and sinkhole neutral evaluation are non-binding. Neither the insured nor
the insurance company is legally obligated to accept the outcome of the mediation conference. - correct
Answers -True
The ______________ is intended for use by parties who are beginning the process of filing suit against
an insurer, when a party feels they have been damaged by specific acts of the insurer. The Notice is
intended to meet a portion of legal requirements set forth in Section 624.155, Florida Statutes, which
requires a party to file Notice with both the insurer and the Department of Financial Services (DFS) at
least 60 days prior to bringing an action against the insurer. The DFS does not involve itself in the pre-
suit negotiations or communications related to Notices as such actions are not within the scope of its
statutory authority. - correct Answers -Civil Remedies Notice
Mediation Statute 627.7015 - correct Answers -The department shall adopt by rule a property insurance
mediation program to be administered by the department or its designee. The department may also
adopt special rules which are applicable in cases of an emergency within the state. The rules shall be
modeled after practices and procedures set forth in mediation rules of procedure adopted by the
Supreme Court. The rules shall provide for:(a) Reasonable requirement for processing and scheduling of
requests for mediation.(b) Qualifications, denial of application, suspension, revocation of approval, and
other penalties for mediators as provided in s. 627.745 and the Florida Rules for Certified and Court-
Appointed Mediators.(c) Provisions governing who may attend mediation conferences.(d) Selection of
mediators.(e) Criteria for the conduct of mediation conferences.(f) Right to legal counsel.
1
,(5) All statements made and documents produced at a mediation conference shall be deemed to be
settlement negotiations in anticipation of litigation within the scope of s. 90.408. All parties to the
mediation must negotiate in good faith and must have the authority to immediately settle the claim.
Mediators are deemed to be agents of the department and shall have the immunity from suit provided
in s. 44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder has 3
business days within which the policyholder may rescind the settlement unless the policyholder has
cashed or deposited any check or draft disbursed to the policyholder for the disputed matters as a result
of the conference. If a settlement agreement is reached and is not rescinded, it is binding and acts as a
release of all specific claims that were presented in that mediation conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report of the re
Code of ethics (FAC 69B-220.201) - correct Answers -The work of adjusting insurance claims engages the
public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the
adjuster's own interests in every instance. ... (b) An adjuster shall treat all claimants equally.
Florida Insurance Guaranty Association - correct Answers -establishes and maintains a service-oriented
operation for processing covered claims of insolvent members. FIGA is a nonprofit corporation created
by the Florida Legislature in 1970. FIGA services pending claims by or against Florida policyholders of
member insurance companies which become insolvent and are ordered liquidated.
The Residential Property and Casualty Joint Underwriting Association originally created by this statute
shall be known as the Citizens Property Insurance Corporation - correct Answers -The corporation shall
provide insurance for residential and commercial property, for applicants who are entitled, but, in good
faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage - correct Answers -We will pay for
"loss" to a covered "auto" or its equipment under:
a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with another
object; or (2) The covered "auto's" overturn.
b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3)
Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision
or derailment of any conveyance transporting the covered "auto".
c. Collision Coverage Caused by: (1) The covered "auto's" collision with another object; or (2) The
covered "auto's" overturn.
2
, Part D - Coverage for damage to your auto - correct Answers -the insurance company agrees to pay an
amount in excess of your deductible for direct and accidental loss to your covered car or any other car
specified in the agreement. Thus, it pays for damage or theft to your car.
627.70131 Insurer's duty to acknowledge communications regarding claims; investigation. - correct
Answers -(1) Upon an insurer's receiving a communication with respect to a claim, the insurer shall,
within 14 calendar days, review and acknowledge receipt of such communication unless payment is
made within that period of time or unless the failure to acknowledge is caused by factors beyond the
control of the insurer which reasonably prevent such acknowledgment. If the acknowledgment is not in
writing, a notification indicating acknowledgment shall be made in the insurer's claim file and dated. A
communication made to or by an agent of an insurer with respect to a claim shall constitute
communication to or by the insurer.
(2) Such acknowledgment shall be responsive to the communication. If the communication constitutes a
notification of a claim, unless the acknowledgment reasonably advises the claimant that the claim
appears not to be covered by the insurer, the acknowledgment shall provide necessary claim forms, and
instructions, including an appropriate telephone number.
(3) Unless otherwise provided by the policy of insurance or by law, within 10 working days after an
insurer receives proof of loss statements, the insurer shall begin such investigation as is reasonably
necessary unless the failure to begin such investigation is caused by factors beyond the control of the
insurer which reasonably prevent the commencement of such investigation.
(4) For purposes of this section, the term "insurer" means any residential property insurer.
(5)(a) Within 90 days after an insurer receives notice of an initial, reopened, or supplemental property
insurance claim from a policyholder, the insurer shall pay or deny such claim or a portion of the claim
unless the failure to pay is caused by factors beyond the control of the insurer which reasonably prevent
such payment. Any payment of an initial or supplemental claim or portion of such
Valuation of Mobile/Manufactured Homes - correct Answers -If the manufactured home's homeowners'
policy has a value on it, and you're in a valued policy state, the insurance company will pay up to the
limit listed on the policy if the home is deemed a total loss.
Some manufactured home policies will have a provision that allows for homes less than a certain age (10
years for example) to be valued at replacement cost. This has been done in part because some
companies recognize that construction methods have changed over the years and that the home is
newer. It's kind of like getting new car replacement on your auto policy, but only for late models.
DP-1 Basic Form - correct Answers -Perils insured against are fire, lightning, and internal explosion.
3
