Florida Claims Adjuster Exam
1. What is the primary purpose of insurance?
A) To eliminate risk
B) To minimize risk
C) To transfer risk
D) To avoid risk
Answer: C) To transfer risk
Rationale: Insurance is designed to transfer financial risk from the insured to the
insurer in exchange for a premium.
2. What is the statute of limitations for filing a claim for property damage in Florida?
A) 3 years
,B) 4 years
C) 5 years
D) 6 years
Answer: B) 4 years
Rationale: In Florida, the statute of limitations for property damage claims is four
years from the date of the loss.
3. In Florida, how many continuing education hours are required every two years for
a licensed adjuster?
A) 24 hours
B) 30 hours
C) 36 hours
D) 40 hours
Answer: A) 24 hours
Rationale: Florida requires licensed adjusters to complete 24 hours of continuing
education every two years, including 5 hours on law and ethics.
4. Which of the following describes "bad faith" in insurance claims handling?
A) The insurer’s intentional delay in processing claims
B) The insured’s intentional misrepresentation of facts
C) The insurer’s failure to settle claims in good faith
D) The adjuster’s failure to investigate a claim
Answer: C) The insurer’s failure to settle claims in good faith
Rationale: "Bad faith" refers to an insurer's refusal to fulfill its obligations under the
policy, such as not paying claims promptly or unfairly denying valid claims.
5. What type of insurance adjuster works directly for the insurance company?
A) Independent Adjuster
B) Public Adjuster
C) Staff Adjuster
D) Catastrophe Adjuster
Answer: C) Staff Adjuster
,Rationale: A staff adjuster is employed directly by an insurance company and handles
claims on behalf of that company.
6. Under Florida law, which of the following must be present for an insured to
receive a replacement cost settlement for property damage?
A) The damaged property must be insured for actual cash value.
B) The insured must replace or repair the damaged property.
C) The damage must exceed the policy deductible.
D) The property must be appraised before the settlement.
Answer: B) The insured must replace or repair the damaged property
Rationale: For an insured to receive replacement cost settlement in Florida, they
must typically repair or replace the damaged property.
7. What is the role of a public adjuster in Florida?
A) To represent the insurer during the claims process
B) To provide independent evaluations of claims
C) To assist the policyholder in negotiating a settlement
D) To investigate fraud on behalf of the insurance company
Answer: C) To assist the policyholder in negotiating a settlement
Rationale: A public adjuster is hired by the policyholder to represent them and
negotiate claims with the insurance company.
8. Which of the following types of insurance is mandatory for all drivers in Florida?
A) Comprehensive coverage
B) Liability coverage
C) Personal Injury Protection (PIP)
D) Uninsured motorist coverage
Answer: C) Personal Injury Protection (PIP)
Rationale: In Florida, Personal Injury Protection (PIP) is required for all drivers as part
of the state's no-fault insurance law.9. What is the maximum percentage a public
adjuster in Florida may charge for their services on a claim for a non-hurricane loss?
A) 5%
, B) 10%
C) 15%
D) 20%
Answer: C) 15%
Rationale: Florida law limits public adjuster fees to 15% of the amount of insurance
claim payments for non-hurricane related claims.
10. In Florida, how long must an insurer acknowledge receipt of a claim after being
notified by the insured?
A) 48 hours
B) 10 days
C) 14 days
D) 30 days
Answer: C) 14 days
Rationale: Florida law requires insurers to acknowledge receipt of a claim within 14
days after being notified, unless payment is made within that time.
11. What type of policy provides insurance for losses due to employee dishonesty or
theft?
A) Liability policy
B) Fidelity bond
C) Workers' compensation policy
D) Crime policy
Answer: B) Fidelity bond
Rationale: A fidelity bond is a type of insurance that covers losses incurred as a result
of fraudulent or dishonest acts by employees, including theft.
12. Which of the following is NOT a form of liability insurance?
A) Personal auto insurance
B) General liability insurance
C) Professional liability insurance
D) Property damage insurance
1. What is the primary purpose of insurance?
A) To eliminate risk
B) To minimize risk
C) To transfer risk
D) To avoid risk
Answer: C) To transfer risk
Rationale: Insurance is designed to transfer financial risk from the insured to the
insurer in exchange for a premium.
2. What is the statute of limitations for filing a claim for property damage in Florida?
A) 3 years
,B) 4 years
C) 5 years
D) 6 years
Answer: B) 4 years
Rationale: In Florida, the statute of limitations for property damage claims is four
years from the date of the loss.
3. In Florida, how many continuing education hours are required every two years for
a licensed adjuster?
A) 24 hours
B) 30 hours
C) 36 hours
D) 40 hours
Answer: A) 24 hours
Rationale: Florida requires licensed adjusters to complete 24 hours of continuing
education every two years, including 5 hours on law and ethics.
4. Which of the following describes "bad faith" in insurance claims handling?
A) The insurer’s intentional delay in processing claims
B) The insured’s intentional misrepresentation of facts
C) The insurer’s failure to settle claims in good faith
D) The adjuster’s failure to investigate a claim
Answer: C) The insurer’s failure to settle claims in good faith
Rationale: "Bad faith" refers to an insurer's refusal to fulfill its obligations under the
policy, such as not paying claims promptly or unfairly denying valid claims.
5. What type of insurance adjuster works directly for the insurance company?
A) Independent Adjuster
B) Public Adjuster
C) Staff Adjuster
D) Catastrophe Adjuster
Answer: C) Staff Adjuster
,Rationale: A staff adjuster is employed directly by an insurance company and handles
claims on behalf of that company.
6. Under Florida law, which of the following must be present for an insured to
receive a replacement cost settlement for property damage?
A) The damaged property must be insured for actual cash value.
B) The insured must replace or repair the damaged property.
C) The damage must exceed the policy deductible.
D) The property must be appraised before the settlement.
Answer: B) The insured must replace or repair the damaged property
Rationale: For an insured to receive replacement cost settlement in Florida, they
must typically repair or replace the damaged property.
7. What is the role of a public adjuster in Florida?
A) To represent the insurer during the claims process
B) To provide independent evaluations of claims
C) To assist the policyholder in negotiating a settlement
D) To investigate fraud on behalf of the insurance company
Answer: C) To assist the policyholder in negotiating a settlement
Rationale: A public adjuster is hired by the policyholder to represent them and
negotiate claims with the insurance company.
8. Which of the following types of insurance is mandatory for all drivers in Florida?
A) Comprehensive coverage
B) Liability coverage
C) Personal Injury Protection (PIP)
D) Uninsured motorist coverage
Answer: C) Personal Injury Protection (PIP)
Rationale: In Florida, Personal Injury Protection (PIP) is required for all drivers as part
of the state's no-fault insurance law.9. What is the maximum percentage a public
adjuster in Florida may charge for their services on a claim for a non-hurricane loss?
A) 5%
, B) 10%
C) 15%
D) 20%
Answer: C) 15%
Rationale: Florida law limits public adjuster fees to 15% of the amount of insurance
claim payments for non-hurricane related claims.
10. In Florida, how long must an insurer acknowledge receipt of a claim after being
notified by the insured?
A) 48 hours
B) 10 days
C) 14 days
D) 30 days
Answer: C) 14 days
Rationale: Florida law requires insurers to acknowledge receipt of a claim within 14
days after being notified, unless payment is made within that time.
11. What type of policy provides insurance for losses due to employee dishonesty or
theft?
A) Liability policy
B) Fidelity bond
C) Workers' compensation policy
D) Crime policy
Answer: B) Fidelity bond
Rationale: A fidelity bond is a type of insurance that covers losses incurred as a result
of fraudulent or dishonest acts by employees, including theft.
12. Which of the following is NOT a form of liability insurance?
A) Personal auto insurance
B) General liability insurance
C) Professional liability insurance
D) Property damage insurance
