Florida Public Adjuster 3-20 Exam
Questions with Verified Answers
There are several important statutory requirements pertaining to contracts made by public
adjusters: - ✔✔Must state the type of claim, including an emergency claim, non-emergency
claim or supplemental claim.
Requires the signatures of all named insureds.
If the signatures of all named insureds are not available, the public adjuster must submit an
affidavit signed by the available named insureds attesting that they have authority to enter into
the contract and settle all claim issues on behalf of the named insureds.
An unaltered copy of the contract must be remitted to the insurer within 30 days after
execution. This means the contract provided to the insurer must also contain the agreed upon
fee percentage.
True or False: Both mediation and sinkhole neutral evaluation are non-binding. Neither the
insured nor the insurance company is legally obligated to accept the outcome of the mediation
conference. - ✔✔True
The ______________ is intended for use by parties who are beginning the process of filing suit
against an insurer, when a party feels they have been damaged by specific acts of the insurer.
The Notice is intended to meet a portion of legal requirements set forth in Section 624.155,
Florida Statutes, which requires a party to file Notice with both the insurer and the Department
of Financial Services (DFS) at least 60 days prior to bringing an action against the insurer. The
DFS does not involve itself in the pre-suit negotiations or communications related to Notices as
such actions are not within the scope of its statutory authority. - ✔✔Civil Remedies Notice
Mediation Statute 627.7015 - ✔✔The department shall adopt by rule a property insurance
mediation program to be administered by the department or its designee. The department may
also adopt special rules which are applicable in cases of an emergency within the state. The
rules shall be modeled after practices and procedures set forth in mediation rules of procedure
adopted by the Supreme Court. The rules shall provide for:(a) Reasonable requirement for
processing and scheduling of requests for mediation.(b) Qualifications, denial of application,
suspension, revocation of approval, and other penalties for mediators as provided in s. 627.745
,and the Florida Rules for Certified and Court-Appointed Mediators.(c) Provisions governing who
may attend mediation conferences.(d) Selection of mediators.(e) Criteria for the conduct of
mediation conferences.(f) Right to legal counsel.
(5) All statements made and documents produced at a mediation conference shall be deemed
to be settlement negotiations in anticipation of litigation within the scope of s. 90.408. All
parties to the mediation must negotiate in good faith and must have the authority to
immediately settle the claim. Mediators are deemed to be agents of the department and shall
have the immunity from suit provided in s. 44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder
has 3 business days within which the policyholder may rescind the settlement unless the
policyholder has cashed or deposited any check or draft disbursed to the policyholder for the
disputed matters as a result of the conference. If a settlement agreement is reached and is not
rescinded, it is binding and acts as a release of all specific claims that were presented in that
mediation conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report of the re
Code of ethics (FAC 69B-220.201) - ✔✔The work of adjusting insurance claims engages the
public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above
the adjuster's own interests in every instance. ... (b) An adjuster shall treat all claimants equally.
Florida Insurance Guaranty Association - ✔✔establishes and maintains a service-oriented
operation for processing covered claims of insolvent members. FIGA is a nonprofit corporation
created by the Florida Legislature in 1970. FIGA services pending claims by or against Florida
policyholders of member insurance companies which become insolvent and are ordered
liquidated.
The Residential Property and Casualty Joint Underwriting Association originally created by this
statute shall be known as the Citizens Property Insurance Corporation - ✔✔The corporation
shall provide insurance for residential and commercial property, for applicants who are
entitled, but, in good faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage - ✔✔We will pay for "loss" to
a covered "auto" or its equipment under:
, a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with
another object; or (2) The covered "auto's" overturn.
b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3)
Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning,
collision or derailment of any conveyance transporting the covered "auto".
c. Collision Coverage Caused by: (1) The covered "auto's" collision with another object; or (2)
The covered "auto's" overturn.
Part D - Coverage for damage to your auto - ✔✔the insurance company agrees to pay an
amount in excess of your deductible for direct and accidental loss to your covered car or any
other car specified in the agreement. Thus, it pays for damage or theft to your car.
627.70131 Insurer's duty to acknowledge communications regarding claims; investigation. -
✔✔(1) Upon an insurer's receiving a communication with respect to a claim, the insurer shall,
within 14 calendar days, review and acknowledge receipt of such communication unless
payment is made within that period of time or unless the failure to acknowledge is caused by
factors beyond the control of the insurer which reasonably prevent such acknowledgment. If
the acknowledgment is not in writing, a notification indicating acknowledgment shall be made
in the insurer's claim file and dated. A communication made to or by an agent of an insurer with
respect to a claim shall constitute communication to or by the insurer.
(2) Such acknowledgment shall be responsive to the communication. If the communication
constitutes a notification of a claim, unless the acknowledgment reasonably advises the
claimant that the claim appears not to be covered by the insurer, the acknowledgment shall
provide necessary claim forms, and instructions, including an appropriate telephone number.
(3) Unless otherwise provided by the policy of insurance or by law, within 10 working days after
an insurer receives proof of loss statements, the insurer shall begin such investigation as is
reasonably necessary unless the failure to begin such investigation is caused by factors beyond
the control of the insurer which reasonably prevent the commencement of such investigation.
(4) For purposes of this section, the term "insurer" means any residential property insurer.
(5)(a) Within 90 days after an insurer receives notice of an initial, reopened, or supplemental
property insurance claim from a policyholder, the insurer shall pay or deny such claim or a
portion of the claim unless the failure to pay is caused by factors beyond the control of the
insurer which reasonably prevent such payment. Any payment of an initial or supplemental
claim or portion of such
Questions with Verified Answers
There are several important statutory requirements pertaining to contracts made by public
adjusters: - ✔✔Must state the type of claim, including an emergency claim, non-emergency
claim or supplemental claim.
Requires the signatures of all named insureds.
If the signatures of all named insureds are not available, the public adjuster must submit an
affidavit signed by the available named insureds attesting that they have authority to enter into
the contract and settle all claim issues on behalf of the named insureds.
An unaltered copy of the contract must be remitted to the insurer within 30 days after
execution. This means the contract provided to the insurer must also contain the agreed upon
fee percentage.
True or False: Both mediation and sinkhole neutral evaluation are non-binding. Neither the
insured nor the insurance company is legally obligated to accept the outcome of the mediation
conference. - ✔✔True
The ______________ is intended for use by parties who are beginning the process of filing suit
against an insurer, when a party feels they have been damaged by specific acts of the insurer.
The Notice is intended to meet a portion of legal requirements set forth in Section 624.155,
Florida Statutes, which requires a party to file Notice with both the insurer and the Department
of Financial Services (DFS) at least 60 days prior to bringing an action against the insurer. The
DFS does not involve itself in the pre-suit negotiations or communications related to Notices as
such actions are not within the scope of its statutory authority. - ✔✔Civil Remedies Notice
Mediation Statute 627.7015 - ✔✔The department shall adopt by rule a property insurance
mediation program to be administered by the department or its designee. The department may
also adopt special rules which are applicable in cases of an emergency within the state. The
rules shall be modeled after practices and procedures set forth in mediation rules of procedure
adopted by the Supreme Court. The rules shall provide for:(a) Reasonable requirement for
processing and scheduling of requests for mediation.(b) Qualifications, denial of application,
suspension, revocation of approval, and other penalties for mediators as provided in s. 627.745
,and the Florida Rules for Certified and Court-Appointed Mediators.(c) Provisions governing who
may attend mediation conferences.(d) Selection of mediators.(e) Criteria for the conduct of
mediation conferences.(f) Right to legal counsel.
(5) All statements made and documents produced at a mediation conference shall be deemed
to be settlement negotiations in anticipation of litigation within the scope of s. 90.408. All
parties to the mediation must negotiate in good faith and must have the authority to
immediately settle the claim. Mediators are deemed to be agents of the department and shall
have the immunity from suit provided in s. 44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder
has 3 business days within which the policyholder may rescind the settlement unless the
policyholder has cashed or deposited any check or draft disbursed to the policyholder for the
disputed matters as a result of the conference. If a settlement agreement is reached and is not
rescinded, it is binding and acts as a release of all specific claims that were presented in that
mediation conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report of the re
Code of ethics (FAC 69B-220.201) - ✔✔The work of adjusting insurance claims engages the
public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above
the adjuster's own interests in every instance. ... (b) An adjuster shall treat all claimants equally.
Florida Insurance Guaranty Association - ✔✔establishes and maintains a service-oriented
operation for processing covered claims of insolvent members. FIGA is a nonprofit corporation
created by the Florida Legislature in 1970. FIGA services pending claims by or against Florida
policyholders of member insurance companies which become insolvent and are ordered
liquidated.
The Residential Property and Casualty Joint Underwriting Association originally created by this
statute shall be known as the Citizens Property Insurance Corporation - ✔✔The corporation
shall provide insurance for residential and commercial property, for applicants who are
entitled, but, in good faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage - ✔✔We will pay for "loss" to
a covered "auto" or its equipment under:
, a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with
another object; or (2) The covered "auto's" overturn.
b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3)
Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning,
collision or derailment of any conveyance transporting the covered "auto".
c. Collision Coverage Caused by: (1) The covered "auto's" collision with another object; or (2)
The covered "auto's" overturn.
Part D - Coverage for damage to your auto - ✔✔the insurance company agrees to pay an
amount in excess of your deductible for direct and accidental loss to your covered car or any
other car specified in the agreement. Thus, it pays for damage or theft to your car.
627.70131 Insurer's duty to acknowledge communications regarding claims; investigation. -
✔✔(1) Upon an insurer's receiving a communication with respect to a claim, the insurer shall,
within 14 calendar days, review and acknowledge receipt of such communication unless
payment is made within that period of time or unless the failure to acknowledge is caused by
factors beyond the control of the insurer which reasonably prevent such acknowledgment. If
the acknowledgment is not in writing, a notification indicating acknowledgment shall be made
in the insurer's claim file and dated. A communication made to or by an agent of an insurer with
respect to a claim shall constitute communication to or by the insurer.
(2) Such acknowledgment shall be responsive to the communication. If the communication
constitutes a notification of a claim, unless the acknowledgment reasonably advises the
claimant that the claim appears not to be covered by the insurer, the acknowledgment shall
provide necessary claim forms, and instructions, including an appropriate telephone number.
(3) Unless otherwise provided by the policy of insurance or by law, within 10 working days after
an insurer receives proof of loss statements, the insurer shall begin such investigation as is
reasonably necessary unless the failure to begin such investigation is caused by factors beyond
the control of the insurer which reasonably prevent the commencement of such investigation.
(4) For purposes of this section, the term "insurer" means any residential property insurer.
(5)(a) Within 90 days after an insurer receives notice of an initial, reopened, or supplemental
property insurance claim from a policyholder, the insurer shall pay or deny such claim or a
portion of the claim unless the failure to pay is caused by factors beyond the control of the
insurer which reasonably prevent such payment. Any payment of an initial or supplemental
claim or portion of such
