Florida Public Adjuster 3-20 Exam
Questions with Verified Answers
626.854 (3) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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.
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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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 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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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.
Questions with Verified Answers
626.854 (3) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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.
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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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 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) - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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.
