FLORIDA 3-20 PUBLIC ADJUSTER EXAM
OUTLINES EXAM QUESTIONS WITH
UPGRADED CORRECT ANSWERS .
626.854 (3) - correct Answers -A public adjuster may not give legal advice or act on behalf of or aid any
person in negotiating or settling a claim relating to bodily injury, death, or noneconomic damages.
626.854 (5) - correct Answers -A public adjuster may not directly or indirectly through any other person
or entity solicit an insured or claimant by any means except on Monday through Saturday of each week
and only between the hours of 8 a.m. and 8 p.m. on those days.
626.854 (6) - correct Answers -An insured or claimant may cancel a public adjuster's contract to adjust a
claim without penalty or obligation within 3 business days after the date on which the contract is executed
or within 3 business days after the date on which the insured or claimant has notified the insurer of the
claim, whichever is later. The public adjuster's contract must disclose to the insured or claimant his or her
right to cancel the contract and advise the insured or claimant that notice of cancellation must be
submitted in writing and sent by certified mail, return receipt requested, or other form of mailing that
provides proof thereof, to the public adjuster at the address specified in the contract; provided, during any
state of emergency as declared by the Governor and for 1 year after the date of loss, the insured or
claimant has 10 business days after the date on which the contract is executed to cancel a public adjuster's
contract.
626.854 (7) - correct Answers -It is an unfair and deceptive insurance trade practice pursuant to s.
626.9541 for a public adjuster or any other person to circulate or disseminate any advertisement,
announcement, or statement containing any assertion, representation, or statement with respect to the
business of insurance which is untrue, deceptive, or misleading.
626.854 (7) (a) - correct Answers -The following statements, made in any public adjuster's advertisement
or solicitation, are considered deceptive or misleading:
1. A statement or representation that invites an insured policyholder to submit a claim when the
policyholder does not have covered damage to insured property.
2. A statement or representation that invites an insured policyholder to submit a claim by offering
monetary or other valuable inducement.
1
,3. A statement or representation that invites an insured policyholder to submit a claim by stating that there
is "no risk" to the policyholder by submitting such claim.
4. A statement or representation, or use of a logo or shield, that implies or could mistakenly be construed
to imply that the solicitation was issued or distributed by a governmental agency or is sanctioned or
endorsed by a governmental agency.
626.854 (7) (b) - correct Answers -For purposes of this paragraph, the term "written advertisement"
includes only newspapers, magazines, flyers, and bulk mailers. The following disclaimer, which is not
required to be printed on standard size business cards, must be added in bold print and capital letters in
typeface no smaller than the typeface of the body of the text to all written advertisements by a public
adjuster:
"THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED
PROPERTY LOSS OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR
INSURER, YOU MAY DISREGARD THIS ADVERTISEMENT."
626.854 (8) - correct Answers -A public adjuster, a public adjuster apprentice, or any person or entity
acting on behalf of a public adjuster or public adjuster apprentice may not give or offer to give a monetary
loan or advance to a client or prospective client.
626.854 (9) - correct Answers -A public adjuster, public adjuster apprentice, or any individual or entity
acting on behalf of a public adjuster or public adjuster apprentice may not give or offer to give, directly or
indirectly, any article of merchandise having a value in excess of $25 to any individual for the purpose of
advertising or as an inducement to entering into a contract with a public adjuster.
626.854 (10) (a) - correct Answers -If a public adjuster enters into a contract with an insured or claimant
to reopen a claim or file a supplemental claim that seeks additional payments for a claim that has been
previously paid in part or in full or settled by the insurer, the public adjuster may not charge, agree to, or
accept from any source compensation, payment, commission, fee, or any other thing of value based on a
previous settlement or previous claim payments by the insurer for the same cause of loss. The charge,
compensation, payment, commission, fee, or any other thing of value must be based only on the claim
payments or settlement obtained through the work of the public adjuster after entering into the contract
with the insured or claimant. Compensation for the reopened or supplemental claim may not exceed 20
percent of the reopened or supplemental claim payment. In no event shall the contracts described in this
paragraph exceed the limitations in paragraph (b).
626.854 (10) (b) - correct Answers -A public adjuster may not charge, agree to, or accept from any source
compensation, payment, commission, fee, or any other thing of value in excess of:
1. Ten percent of the amount of insurance claim payments made by the insurer for claims based on events
that are the subject of a declaration of a state of emergency by the Governor. This provision applies to
2
, claims made during the year after the declaration of emergency. After that year, the limitations in
subparagraph 2. apply.
2. Twenty percent of the amount of insurance claim payments made by the insurer for claims that are not
based on events that are the subject of a declaration of a state of emergency by the Governor.
626.854 (10) (c) - correct Answers -Insurance claim payments made by the insurer do not include policy
deductibles, and public adjuster compensation may not be based on the deductible portion of a claim.
626.854 (10) (d) - correct Answers -Any maneuver, shift, or device through which the limits on
compensation set forth in this subsection are exceeded is a violation of this chapter punishable as
provided under s. 626.8698.
626.854 (11) - correct Answers -Each public adjuster must provide to the claimant or insured a written
estimate of the loss to assist in the submission of a proof of loss or any other claim for payment of
insurance proceeds. The public adjuster shall retain such written estimate for at least 5 years and shall
make the estimate available to the claimant or insured, the insurer, and the department upon request.
626.854 (12) - correct Answers -A public adjuster, public adjuster apprentice, or any person acting on
behalf of a public adjuster or apprentice may not accept referrals of business from any person with whom
the public adjuster conducts business if there is any form or manner of agreement to compensate the
person, directly or indirectly, for referring business to the public adjuster. A public adjuster may not
compensate any person, except for another public adjuster, directly or indirectly, for the principal purpose
of referring business to the public adjuster.
626.854 (13) - correct Answers -A company employee adjuster, independent adjuster, attorney,
investigator, or other persons acting on behalf of an insurer that needs access to an insured or claimant or
to the insured property that is the subject of a claim must provide at least 48 hours' notice to the insured or
claimant, public adjuster, or legal representative before scheduling a meeting with the claimant or an
onsite inspection of the insured property. The insured or claimant may deny access to the property if the
notice has not been provided. The insured or claimant may waive the 48-hour notice.
626.854 (14) - correct Answers -The public adjuster must ensure that prompt notice is given of the claim
to the insurer, the public adjuster's contract is provided to the insurer, the property is available for
inspection of the loss or damage by the insurer, and the insurer is given an opportunity to interview the
insured directly about the loss and claim. The insurer must be allowed to obtain necessary information to
investigate and respond to the claim.
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OUTLINES EXAM QUESTIONS WITH
UPGRADED CORRECT ANSWERS .
626.854 (3) - correct Answers -A public adjuster may not give legal advice or act on behalf of or aid any
person in negotiating or settling a claim relating to bodily injury, death, or noneconomic damages.
626.854 (5) - correct Answers -A public adjuster may not directly or indirectly through any other person
or entity solicit an insured or claimant by any means except on Monday through Saturday of each week
and only between the hours of 8 a.m. and 8 p.m. on those days.
626.854 (6) - correct Answers -An insured or claimant may cancel a public adjuster's contract to adjust a
claim without penalty or obligation within 3 business days after the date on which the contract is executed
or within 3 business days after the date on which the insured or claimant has notified the insurer of the
claim, whichever is later. The public adjuster's contract must disclose to the insured or claimant his or her
right to cancel the contract and advise the insured or claimant that notice of cancellation must be
submitted in writing and sent by certified mail, return receipt requested, or other form of mailing that
provides proof thereof, to the public adjuster at the address specified in the contract; provided, during any
state of emergency as declared by the Governor and for 1 year after the date of loss, the insured or
claimant has 10 business days after the date on which the contract is executed to cancel a public adjuster's
contract.
626.854 (7) - correct Answers -It is an unfair and deceptive insurance trade practice pursuant to s.
626.9541 for a public adjuster or any other person to circulate or disseminate any advertisement,
announcement, or statement containing any assertion, representation, or statement with respect to the
business of insurance which is untrue, deceptive, or misleading.
626.854 (7) (a) - correct Answers -The following statements, made in any public adjuster's advertisement
or solicitation, are considered deceptive or misleading:
1. A statement or representation that invites an insured policyholder to submit a claim when the
policyholder does not have covered damage to insured property.
2. A statement or representation that invites an insured policyholder to submit a claim by offering
monetary or other valuable inducement.
1
,3. A statement or representation that invites an insured policyholder to submit a claim by stating that there
is "no risk" to the policyholder by submitting such claim.
4. A statement or representation, or use of a logo or shield, that implies or could mistakenly be construed
to imply that the solicitation was issued or distributed by a governmental agency or is sanctioned or
endorsed by a governmental agency.
626.854 (7) (b) - correct Answers -For purposes of this paragraph, the term "written advertisement"
includes only newspapers, magazines, flyers, and bulk mailers. The following disclaimer, which is not
required to be printed on standard size business cards, must be added in bold print and capital letters in
typeface no smaller than the typeface of the body of the text to all written advertisements by a public
adjuster:
"THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED
PROPERTY LOSS OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR
INSURER, YOU MAY DISREGARD THIS ADVERTISEMENT."
626.854 (8) - correct Answers -A public adjuster, a public adjuster apprentice, or any person or entity
acting on behalf of a public adjuster or public adjuster apprentice may not give or offer to give a monetary
loan or advance to a client or prospective client.
626.854 (9) - correct Answers -A public adjuster, public adjuster apprentice, or any individual or entity
acting on behalf of a public adjuster or public adjuster apprentice may not give or offer to give, directly or
indirectly, any article of merchandise having a value in excess of $25 to any individual for the purpose of
advertising or as an inducement to entering into a contract with a public adjuster.
626.854 (10) (a) - correct Answers -If a public adjuster enters into a contract with an insured or claimant
to reopen a claim or file a supplemental claim that seeks additional payments for a claim that has been
previously paid in part or in full or settled by the insurer, the public adjuster may not charge, agree to, or
accept from any source compensation, payment, commission, fee, or any other thing of value based on a
previous settlement or previous claim payments by the insurer for the same cause of loss. The charge,
compensation, payment, commission, fee, or any other thing of value must be based only on the claim
payments or settlement obtained through the work of the public adjuster after entering into the contract
with the insured or claimant. Compensation for the reopened or supplemental claim may not exceed 20
percent of the reopened or supplemental claim payment. In no event shall the contracts described in this
paragraph exceed the limitations in paragraph (b).
626.854 (10) (b) - correct Answers -A public adjuster may not charge, agree to, or accept from any source
compensation, payment, commission, fee, or any other thing of value in excess of:
1. Ten percent of the amount of insurance claim payments made by the insurer for claims based on events
that are the subject of a declaration of a state of emergency by the Governor. This provision applies to
2
, claims made during the year after the declaration of emergency. After that year, the limitations in
subparagraph 2. apply.
2. Twenty percent of the amount of insurance claim payments made by the insurer for claims that are not
based on events that are the subject of a declaration of a state of emergency by the Governor.
626.854 (10) (c) - correct Answers -Insurance claim payments made by the insurer do not include policy
deductibles, and public adjuster compensation may not be based on the deductible portion of a claim.
626.854 (10) (d) - correct Answers -Any maneuver, shift, or device through which the limits on
compensation set forth in this subsection are exceeded is a violation of this chapter punishable as
provided under s. 626.8698.
626.854 (11) - correct Answers -Each public adjuster must provide to the claimant or insured a written
estimate of the loss to assist in the submission of a proof of loss or any other claim for payment of
insurance proceeds. The public adjuster shall retain such written estimate for at least 5 years and shall
make the estimate available to the claimant or insured, the insurer, and the department upon request.
626.854 (12) - correct Answers -A public adjuster, public adjuster apprentice, or any person acting on
behalf of a public adjuster or apprentice may not accept referrals of business from any person with whom
the public adjuster conducts business if there is any form or manner of agreement to compensate the
person, directly or indirectly, for referring business to the public adjuster. A public adjuster may not
compensate any person, except for another public adjuster, directly or indirectly, for the principal purpose
of referring business to the public adjuster.
626.854 (13) - correct Answers -A company employee adjuster, independent adjuster, attorney,
investigator, or other persons acting on behalf of an insurer that needs access to an insured or claimant or
to the insured property that is the subject of a claim must provide at least 48 hours' notice to the insured or
claimant, public adjuster, or legal representative before scheduling a meeting with the claimant or an
onsite inspection of the insured property. The insured or claimant may deny access to the property if the
notice has not been provided. The insured or claimant may waive the 48-hour notice.
626.854 (14) - correct Answers -The public adjuster must ensure that prompt notice is given of the claim
to the insurer, the public adjuster's contract is provided to the insurer, the property is available for
inspection of the loss or damage by the insurer, and the insurer is given an opportunity to interview the
insured directly about the loss and claim. The insurer must be allowed to obtain necessary information to
investigate and respond to the claim.
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