FLORIDA CERTIFIED ADJUSTER PRE-
LICENSING EXAM 2025 QUESTIONS
AND ANSWERS
Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary
service to the benefit of society. He also recently purchased a $100,000 life insurance policy
from the organization. This was possible because the Knights of Columbus is: - ANS a
fraternal benefit society
Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30
days late. However, Jason is currently more than 30 days late, and has been so five times in the
last year, and his insurer has done nothing about it. When Jason gets into an accident and files a
claim, which of the following is most likely to happen? - ANS The insurer will pay the claim
because of the implied waiver they have made by not cancelling Jason's policy the previous
times he was late with his payments
Jared hopes to purchase a new insurance policy for his car, but he has an extremely poor
driving record. The insurance company decides to issue Jared an insurance policy, but charges
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,him a premium much higher than the average driver. The insurance company is practicing: -
ANS risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory, conditional,
unilateral, universal) - ANS universal
A few weeks ago Christopher's garage was destroyed by an out-of-control motorist.
Fortunately, the motorist had sufficient liability insurance to cover the damages. However, the
insurer insists that Christopher's garage is worth far less than the appraisals he has received
from contractors. Christopher and the insurer have gone back and forth in negotiations for
weeks, making little headway. Christopher decides it's time to: - ANS issue a complaint
against the policyholder
A reciprocal insurer is: - ANS an unincorporated organization of subscribers that operates
through an attorney-in-fact to provide insurance benefits for its members.
Bob has been in the construction business a long time and is ready to retire. He sells the
company to his friend Scott and then lets the insurer know that any claims against his policy
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,should be paid to Scott from now on. The insurer informs Bob that they cannot do this due to
which condition? - ANS assignment
Cindy and her insurer cannot reach an agreement for her property claim, and have gone back
and forth for weeks without coming within $10,000 of each other. At this point, since both
believe they are offering a fair settlement, a third party is needed to help facilitate the
negotiation. Both parties still want to retain their ability to "walk-away" if they cannot reach an
agreement. What is the next best step for Cindy and her insurer? - ANS mediation
How is the power to bind transferred to an adjuster? - ANS it is transferred through a written
contract
Which of the following statements best describes a part of the appraisal process?
A. The claimant and the insurer each select an appraiser, and those two select an umpire.
B. All parties must agree to the final amount in order for it to be binding.
C. A neutral third party, called the appraiser, plays an advisory role to help the disputing parties
come to a settlement.
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, D. The opposing parties submit their evidence to the appraiser, who makes a final and binding
decision. - ANS A. The claimant and the insurer each select an appraiser, and those two
select an umpire.
Bob's home was severely damaged by a thunderstorm and he claims it will cost $74,000 to
repair. His insurer has investigated the claim, found the repairs could be done for $49,000, and
has offered Bob this amount of indemnification. Negotiation between Bob and his insurer
seems to be failing. Due to the unpredictability of the result, which of the following options
should be avoided by the insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - ANS C. Litigation
In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 4
LICENSING EXAM 2025 QUESTIONS
AND ANSWERS
Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary
service to the benefit of society. He also recently purchased a $100,000 life insurance policy
from the organization. This was possible because the Knights of Columbus is: - ANS a
fraternal benefit society
Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30
days late. However, Jason is currently more than 30 days late, and has been so five times in the
last year, and his insurer has done nothing about it. When Jason gets into an accident and files a
claim, which of the following is most likely to happen? - ANS The insurer will pay the claim
because of the implied waiver they have made by not cancelling Jason's policy the previous
times he was late with his payments
Jared hopes to purchase a new insurance policy for his car, but he has an extremely poor
driving record. The insurance company decides to issue Jared an insurance policy, but charges
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 1
,him a premium much higher than the average driver. The insurance company is practicing: -
ANS risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory, conditional,
unilateral, universal) - ANS universal
A few weeks ago Christopher's garage was destroyed by an out-of-control motorist.
Fortunately, the motorist had sufficient liability insurance to cover the damages. However, the
insurer insists that Christopher's garage is worth far less than the appraisals he has received
from contractors. Christopher and the insurer have gone back and forth in negotiations for
weeks, making little headway. Christopher decides it's time to: - ANS issue a complaint
against the policyholder
A reciprocal insurer is: - ANS an unincorporated organization of subscribers that operates
through an attorney-in-fact to provide insurance benefits for its members.
Bob has been in the construction business a long time and is ready to retire. He sells the
company to his friend Scott and then lets the insurer know that any claims against his policy
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 2
,should be paid to Scott from now on. The insurer informs Bob that they cannot do this due to
which condition? - ANS assignment
Cindy and her insurer cannot reach an agreement for her property claim, and have gone back
and forth for weeks without coming within $10,000 of each other. At this point, since both
believe they are offering a fair settlement, a third party is needed to help facilitate the
negotiation. Both parties still want to retain their ability to "walk-away" if they cannot reach an
agreement. What is the next best step for Cindy and her insurer? - ANS mediation
How is the power to bind transferred to an adjuster? - ANS it is transferred through a written
contract
Which of the following statements best describes a part of the appraisal process?
A. The claimant and the insurer each select an appraiser, and those two select an umpire.
B. All parties must agree to the final amount in order for it to be binding.
C. A neutral third party, called the appraiser, plays an advisory role to help the disputing parties
come to a settlement.
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 3
, D. The opposing parties submit their evidence to the appraiser, who makes a final and binding
decision. - ANS A. The claimant and the insurer each select an appraiser, and those two
select an umpire.
Bob's home was severely damaged by a thunderstorm and he claims it will cost $74,000 to
repair. His insurer has investigated the claim, found the repairs could be done for $49,000, and
has offered Bob this amount of indemnification. Negotiation between Bob and his insurer
seems to be failing. Due to the unpredictability of the result, which of the following options
should be avoided by the insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - ANS C. Litigation
In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 4
