Florida 3-20 Public Adjusters State Exam
(Set 1)| 140 QUESTIONS| 11 PAGES
Course
Claims Adjuster
✅ 1. Question: What is the primary duty of a Florida public adjuster?
A. Represent the insurance company in claims
B. Investigate fraud on behalf of the insurer
C. Represent the insured in the negotiation of claims
D. Act as a claims appraiser in all losses
Correct Answer: C. Represent the insured in the negotiation of claims
Rationale:
A public adjuster is licensed to represent the policyholder, not the insurer, in assessing and
negotiating insurance claims to ensure a fair settlement.
✅ 2. Question: What is the maximum fee a public adjuster may charge for a
claim resulting from a declared state of emergency in Florida?
A. 20% of the claim payment
B. 15% of the claim payment
C. 10% of the claim payment
D. 5% of the claim payment
Correct Answer: C. 10% of the claim payment
Rationale:
Florida law limits a public adjuster's fee to 10% for claims arising from a declared emergency
during the first year after the event (F.S. 626.854(10)).
✅ 3. Question: What is the standard deductible for a Florida homeowners
policy under an HO-3 form for hurricane losses?
A. $250
B. 1%–5% of the dwelling limit
C. Flat $1,000
D. No deductible applies
Correct Answer: B. 1%–5% of the dwelling limit
Rationale:
,Florida allows percentage-based hurricane deductibles, typically 1% to 5% of the dwelling
limit, not a flat dollar amount.
✅ 4. Question: Within how many days must an insurer acknowledge receipt of a
claim communication in Florida?
A. 3 business days
B. 10 calendar days
C. 7 business days
D. 14 calendar days
Correct Answer: D. 14 calendar days
Rationale:
Per Florida Statute 627.70131, insurers must acknowledge receipt of communication within 14
calendar days, unless payment is made within that period.
✅ 5. Question: What type of policy typically offers open perils coverage for the
dwelling but named perils for personal property?
A. HO-1
B. HO-2
C. HO-3
D. HO-8
Correct Answer: C. HO-3
Rationale:
The HO-3 (Special Form) covers the dwelling on an open perils basis, while personal
property is covered under named perils unless modified.
✅ 6. Question: What is the valuation method used for most dwelling coverage
under a standard homeowners policy in Florida?
A. Market value
B. Actual cash value
C. Stated value
D. Replacement cost
Correct Answer: D. Replacement cost
Rationale:
,Dwelling coverage under standard policies is usually provided at replacement cost—the cost to
rebuild without depreciation.
✅ 7. Question: What is considered an unfair claim settlement practice under
Florida law?
A. Denying a claim with proper evidence
B. Prompt communication with the insured
C. Failing to affirm or deny coverage within a reasonable time
D. Using independent adjusters
Correct Answer: C. Failing to affirm or deny coverage within a reasonable time
Rationale:
Delays in confirming or denying coverage violate Florida’s Unfair Trade Practices Act and
can result in penalties.
✅ 8. Question: What must a public adjuster include in a written contract with
an insured in Florida?
A. Policy limits
B. Adjuster’s license number and fee percentage
C. Insurer contact information
D. Court case references
Correct Answer: B. Adjuster’s license number and fee percentage
Rationale:
Florida law requires all public adjuster contracts to state the adjuster’s license number, scope
of services, and maximum fee (F.S. 626.8796).
✅ 9. Question: What is the purpose of the Florida Insurance Guaranty
Association (FIGA)?
A. To prosecute insurance fraud
B. To guarantee profits for insurers
C. To pay claims if an insurer becomes insolvent
D. To regulate agent conduct
Correct Answer: C. To pay claims if an insurer becomes insolvent
Rationale:
, FIGA protects policyholders by paying covered claims when an insurer becomes insolvent, up
to statutory limits.
✅ 10. Question: What is the maximum time a Florida public adjuster must
maintain records of each claim and contract?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Correct Answer: C. 5 years
Rationale:
According to F.A.C. 69B-220.201, public adjusters must retain records of all contracts,
estimates, and communications for at least 5 years.
✅ 11. Question: Under Florida law, when must a public adjuster submit a signed contract
to the insurer?
A. Within 72 hours of the loss
B. Within 24 hours of signing
C. Within 30 days of signing
D. Within 3 business days after signing or before negotiating with the insurer
Correct Answer: D. Within 3 business days after signing or before negotiating with the insurer
Rationale:
Florida Statute 626.854 requires public adjusters to provide a copy of the signed contract to the
insurer within 3 business days or before negotiations, whichever comes first.
✅ 12. Question: What is the standard homeowners policy form used for older homes with
replacement cost higher than market value?
A. HO-2
B. HO-3
C. HO-5
D. HO-8
Correct Answer: D. HO-8
Rationale:
The HO-8 form is tailored for older homes, using actual cash value rather than full
replacement cost due to construction limitations.
(Set 1)| 140 QUESTIONS| 11 PAGES
Course
Claims Adjuster
✅ 1. Question: What is the primary duty of a Florida public adjuster?
A. Represent the insurance company in claims
B. Investigate fraud on behalf of the insurer
C. Represent the insured in the negotiation of claims
D. Act as a claims appraiser in all losses
Correct Answer: C. Represent the insured in the negotiation of claims
Rationale:
A public adjuster is licensed to represent the policyholder, not the insurer, in assessing and
negotiating insurance claims to ensure a fair settlement.
✅ 2. Question: What is the maximum fee a public adjuster may charge for a
claim resulting from a declared state of emergency in Florida?
A. 20% of the claim payment
B. 15% of the claim payment
C. 10% of the claim payment
D. 5% of the claim payment
Correct Answer: C. 10% of the claim payment
Rationale:
Florida law limits a public adjuster's fee to 10% for claims arising from a declared emergency
during the first year after the event (F.S. 626.854(10)).
✅ 3. Question: What is the standard deductible for a Florida homeowners
policy under an HO-3 form for hurricane losses?
A. $250
B. 1%–5% of the dwelling limit
C. Flat $1,000
D. No deductible applies
Correct Answer: B. 1%–5% of the dwelling limit
Rationale:
,Florida allows percentage-based hurricane deductibles, typically 1% to 5% of the dwelling
limit, not a flat dollar amount.
✅ 4. Question: Within how many days must an insurer acknowledge receipt of a
claim communication in Florida?
A. 3 business days
B. 10 calendar days
C. 7 business days
D. 14 calendar days
Correct Answer: D. 14 calendar days
Rationale:
Per Florida Statute 627.70131, insurers must acknowledge receipt of communication within 14
calendar days, unless payment is made within that period.
✅ 5. Question: What type of policy typically offers open perils coverage for the
dwelling but named perils for personal property?
A. HO-1
B. HO-2
C. HO-3
D. HO-8
Correct Answer: C. HO-3
Rationale:
The HO-3 (Special Form) covers the dwelling on an open perils basis, while personal
property is covered under named perils unless modified.
✅ 6. Question: What is the valuation method used for most dwelling coverage
under a standard homeowners policy in Florida?
A. Market value
B. Actual cash value
C. Stated value
D. Replacement cost
Correct Answer: D. Replacement cost
Rationale:
,Dwelling coverage under standard policies is usually provided at replacement cost—the cost to
rebuild without depreciation.
✅ 7. Question: What is considered an unfair claim settlement practice under
Florida law?
A. Denying a claim with proper evidence
B. Prompt communication with the insured
C. Failing to affirm or deny coverage within a reasonable time
D. Using independent adjusters
Correct Answer: C. Failing to affirm or deny coverage within a reasonable time
Rationale:
Delays in confirming or denying coverage violate Florida’s Unfair Trade Practices Act and
can result in penalties.
✅ 8. Question: What must a public adjuster include in a written contract with
an insured in Florida?
A. Policy limits
B. Adjuster’s license number and fee percentage
C. Insurer contact information
D. Court case references
Correct Answer: B. Adjuster’s license number and fee percentage
Rationale:
Florida law requires all public adjuster contracts to state the adjuster’s license number, scope
of services, and maximum fee (F.S. 626.8796).
✅ 9. Question: What is the purpose of the Florida Insurance Guaranty
Association (FIGA)?
A. To prosecute insurance fraud
B. To guarantee profits for insurers
C. To pay claims if an insurer becomes insolvent
D. To regulate agent conduct
Correct Answer: C. To pay claims if an insurer becomes insolvent
Rationale:
, FIGA protects policyholders by paying covered claims when an insurer becomes insolvent, up
to statutory limits.
✅ 10. Question: What is the maximum time a Florida public adjuster must
maintain records of each claim and contract?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Correct Answer: C. 5 years
Rationale:
According to F.A.C. 69B-220.201, public adjusters must retain records of all contracts,
estimates, and communications for at least 5 years.
✅ 11. Question: Under Florida law, when must a public adjuster submit a signed contract
to the insurer?
A. Within 72 hours of the loss
B. Within 24 hours of signing
C. Within 30 days of signing
D. Within 3 business days after signing or before negotiating with the insurer
Correct Answer: D. Within 3 business days after signing or before negotiating with the insurer
Rationale:
Florida Statute 626.854 requires public adjusters to provide a copy of the signed contract to the
insurer within 3 business days or before negotiations, whichever comes first.
✅ 12. Question: What is the standard homeowners policy form used for older homes with
replacement cost higher than market value?
A. HO-2
B. HO-3
C. HO-5
D. HO-8
Correct Answer: D. HO-8
Rationale:
The HO-8 form is tailored for older homes, using actual cash value rather than full
replacement cost due to construction limitations.
