Florida 3-20 Public Adjusters State Exam (Set 1) - 80
Questions
Instructions
This practice exam contains 80 multiple-choice questions designed to prepare candidates
for the Florida 3-20 Public Adjusters State Exam. Each question has four answer options
(A–D), with one correct answer. A rationale is provided for each question to explain
the correct answer. Topics include state regulations, ethics, claims procedures, policy
interpretation, and legal responsibilities. Good luck!
Questions
1. What is the primary role of a public adjuster in Florida?
A. To represent the insurer in claim settlements
B. To assist policyholders in negotiating fair claim settlements
C. To approve claims on behalf of the insurance company
D. To conduct inspections for contractors
Correct Answer: B
Rationale: Per Florida Statute 626.854, a public adjuster acts on behalf of poli-
cyholders to prepare, file, or negotiate insurance claims for fair settlements. They
do not represent insurers or approve claims.
2. Under Florida law, when may a public adjuster solicit an insured or
claimant?
A. Anytime, including Sundays
B. Monday through Saturday, 8 a.m. to 8 p.m.
C. Monday through Friday, 9 a.m. to 5 p.m.
D. Only after the insurer denies the claim
Correct Answer: B
Rationale: Florida Statute 626.854(5) restricts public adjusters from soliciting
insureds or claimants except on Monday through Saturday between 8 a.m. and 8
p.m.
3. What is the maximum time an insured has to cancel a public adjuster’s
contract without penalty?
A. 1 business day
B. 3 business days
C. 5 business days
D. 7 business days
1
, Correct Answer: B
Rationale: Florida Statute 626.854(6) allows an insured or claimant to cancel a
public adjuster’s contract within 3 business days after execution or after notifying
the insurer of the claim, whichever is later, without penalty.
4. Which of the following is a public adjuster prohibited from doing in
Florida?
A. Negotiating settlements for property damage claims
B. Providing legal advice on bodily injury claims
C. Preparing claim forms for policyholders
D. Advertising services as a public adjuster
Correct Answer: B
Rationale: Florida Statute 626.854(3) prohibits public adjusters from giving legal
advice or acting on behalf of anyone in negotiating claims related to bodily injury,
death, or noneconomic damages.
5. What is the minimum age requirement to obtain a Florida 3-20 Public
Adjuster license?
A. 16
B. 18
C. 21
D. 25
Correct Answer: B
Rationale: Florida Statute 626.860 requires a public adjuster to be at least 18
years old to be eligible for licensure.
6. Which document temporarily provides insurance coverage until a policy
is issued?
A. Declarations page
B. Binder
C. Endorsement
D. Certificate of insurance
Correct Answer: B
Rationale: A binder is a temporary agreement that provides insurance coverage
until a formal policy is written, as commonly understood in insurance practices.
7. What is the term for an insured’s conscious decision to engage in risky
behavior because they have insurance?
A. Negligent entrustment
B. Moral hazard
C. Proximate cause
D. Estoppel
Correct Answer: B
Rationale: Moral hazard occurs when an insured takes greater risks due to the
presence of insurance coverage, increasing the likelihood of a loss.
8. What is the section of an insurance policy that identifies the insured,
coverages, limits, and premiums?
A. Conditions
B. Exclusions
2
, C. Declarations
D. Insuring agreement
Correct Answer: C
Rationale: The declarations page outlines key policy details, including the in-
sured’s identity, coverages, limits, and premiums.
9. Under Florida law, how long must a public adjuster be appointed to
maintain an active license?
A. 12 months
B. 24 months
C. 36 months
D. 48 months
Correct Answer: D
Rationale: Florida Statute 626.112(1)(a) states that a public adjuster’s license
expires if unappointed for 48 months.
10. What type of claim is filed by a policyholder against their own insurance
policy?
A. Third-party claim
B. First-party claim
C. Liability claim
D. Subrogation claim
Correct Answer: B
Rationale: A first-party claim is filed by the policyholder against their own insur-
ance policy for covered losses.
11. What is the term for the actual cause of a loss or damage in an insurance
claim?
A. Hazard
B. Peril
C. Risk
D. Warranty
Correct Answer: B
Rationale: A peril is the specific cause of loss or damage, such as fire or theft,
covered by an insurance policy.
12. Which of the following is an ethical obligation of a public adjuster in
Florida?
A. Exaggerating claims to maximize settlements
B. Maintaining accurate records of all claim-related communications
C. Soliciting clients on Sundays
D. Offering referral fees to contractors
Correct Answer: B
Rationale: Florida’s Administrative Code requires public adjusters to keep accu-
rate records as part of ethical claim handling practices.
13. What is required to transfer an insurance policy to another person in
Florida?
A. Verbal agreement between parties
B. Written permission from the insurer
3
Questions
Instructions
This practice exam contains 80 multiple-choice questions designed to prepare candidates
for the Florida 3-20 Public Adjusters State Exam. Each question has four answer options
(A–D), with one correct answer. A rationale is provided for each question to explain
the correct answer. Topics include state regulations, ethics, claims procedures, policy
interpretation, and legal responsibilities. Good luck!
Questions
1. What is the primary role of a public adjuster in Florida?
A. To represent the insurer in claim settlements
B. To assist policyholders in negotiating fair claim settlements
C. To approve claims on behalf of the insurance company
D. To conduct inspections for contractors
Correct Answer: B
Rationale: Per Florida Statute 626.854, a public adjuster acts on behalf of poli-
cyholders to prepare, file, or negotiate insurance claims for fair settlements. They
do not represent insurers or approve claims.
2. Under Florida law, when may a public adjuster solicit an insured or
claimant?
A. Anytime, including Sundays
B. Monday through Saturday, 8 a.m. to 8 p.m.
C. Monday through Friday, 9 a.m. to 5 p.m.
D. Only after the insurer denies the claim
Correct Answer: B
Rationale: Florida Statute 626.854(5) restricts public adjusters from soliciting
insureds or claimants except on Monday through Saturday between 8 a.m. and 8
p.m.
3. What is the maximum time an insured has to cancel a public adjuster’s
contract without penalty?
A. 1 business day
B. 3 business days
C. 5 business days
D. 7 business days
1
, Correct Answer: B
Rationale: Florida Statute 626.854(6) allows an insured or claimant to cancel a
public adjuster’s contract within 3 business days after execution or after notifying
the insurer of the claim, whichever is later, without penalty.
4. Which of the following is a public adjuster prohibited from doing in
Florida?
A. Negotiating settlements for property damage claims
B. Providing legal advice on bodily injury claims
C. Preparing claim forms for policyholders
D. Advertising services as a public adjuster
Correct Answer: B
Rationale: Florida Statute 626.854(3) prohibits public adjusters from giving legal
advice or acting on behalf of anyone in negotiating claims related to bodily injury,
death, or noneconomic damages.
5. What is the minimum age requirement to obtain a Florida 3-20 Public
Adjuster license?
A. 16
B. 18
C. 21
D. 25
Correct Answer: B
Rationale: Florida Statute 626.860 requires a public adjuster to be at least 18
years old to be eligible for licensure.
6. Which document temporarily provides insurance coverage until a policy
is issued?
A. Declarations page
B. Binder
C. Endorsement
D. Certificate of insurance
Correct Answer: B
Rationale: A binder is a temporary agreement that provides insurance coverage
until a formal policy is written, as commonly understood in insurance practices.
7. What is the term for an insured’s conscious decision to engage in risky
behavior because they have insurance?
A. Negligent entrustment
B. Moral hazard
C. Proximate cause
D. Estoppel
Correct Answer: B
Rationale: Moral hazard occurs when an insured takes greater risks due to the
presence of insurance coverage, increasing the likelihood of a loss.
8. What is the section of an insurance policy that identifies the insured,
coverages, limits, and premiums?
A. Conditions
B. Exclusions
2
, C. Declarations
D. Insuring agreement
Correct Answer: C
Rationale: The declarations page outlines key policy details, including the in-
sured’s identity, coverages, limits, and premiums.
9. Under Florida law, how long must a public adjuster be appointed to
maintain an active license?
A. 12 months
B. 24 months
C. 36 months
D. 48 months
Correct Answer: D
Rationale: Florida Statute 626.112(1)(a) states that a public adjuster’s license
expires if unappointed for 48 months.
10. What type of claim is filed by a policyholder against their own insurance
policy?
A. Third-party claim
B. First-party claim
C. Liability claim
D. Subrogation claim
Correct Answer: B
Rationale: A first-party claim is filed by the policyholder against their own insur-
ance policy for covered losses.
11. What is the term for the actual cause of a loss or damage in an insurance
claim?
A. Hazard
B. Peril
C. Risk
D. Warranty
Correct Answer: B
Rationale: A peril is the specific cause of loss or damage, such as fire or theft,
covered by an insurance policy.
12. Which of the following is an ethical obligation of a public adjuster in
Florida?
A. Exaggerating claims to maximize settlements
B. Maintaining accurate records of all claim-related communications
C. Soliciting clients on Sundays
D. Offering referral fees to contractors
Correct Answer: B
Rationale: Florida’s Administrative Code requires public adjusters to keep accu-
rate records as part of ethical claim handling practices.
13. What is required to transfer an insurance policy to another person in
Florida?
A. Verbal agreement between parties
B. Written permission from the insurer
3
