FLORIDA 3-20 PUBLIC ADJUSTERS STATE EXAM/ACTUAL EXAM
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100%
CORRECT | UPDATE 2025
The insurer and insured agree to a specific value of insured item - (Correct Answer) - Agreed
Value Policies
Someone who has care, custody or control of another's property - (Correct Answer) - Bailee
Claim filed by policy holder against his _ - (Correct Answer) - First Party Claim
When a person who entrusts another with an object and it results in injury to someone can be
held liable for the injury to someone. Can be held liable for the injury i.e. Firearm or DWI -
(Correct Answer) - Negligent Entrustment
Hazard that results from a conscious decision made by an insured to participate in a manner or
behavior more likely to result in a loss because they have insurance - (Correct Answer) - Moral
Hazard
Used to provide temporary insurance coverage until an insurance policy can be written - (Correct
Answer) - Binder
Required by lenders to guarantee that outstanding loans against a job are paid upon completion -
(Correct Answer) - Completion Bonds
The section of an insurance policy identifying the insured, endorsements, coverages, limits, and
premiums - (Correct Answer) - Declarations
,[Type here]
Policyholder cannot transfer the policy to someone else without written permission from their
insurance company - (Correct Answer) - Assignment
An instance, behavior or environment that increases the likelihood of a loss on an insured item -
(Correct Answer) - Hazard
Actual cause or source of an incidence of destruction, injury, or loss - (Correct Answer) - Peril
An insurance company organized and domiciled outside the US - (Correct Answer) - Alien
When there is an unbroken chain of events between an occurrence and a loss, then the loss is part
of the original occurrence - (Correct Answer) - Proximate Cause
Is proximate cause of all subsequent damages - (Correct Answer) - Original Occurance
An individual who contracts with an adjusting firm as an independent contractor and handles
claims for the insurance companies - (Correct Answer) - Independent Adjuster
Action or practice of the insured party is permitted to continue because any defense against a
continuation of said action or practice has been waived by the insurer - (Correct Answer) -
Estoppel
Operate for profit, collect premiums, reserve a portion of premiums to pay claims - (Correct
Answer) - Commercial Insurers
, [Type here]
Any person who investigates or adjusts losses on behalf of either an insurer or a self-insured -
(Correct Answer) - Independent Adjuster
The result of an insured's tort or wrongdoing. Consequences of a loss or amount or type of losses
suffered - (Correct Answer) - Damages
Requires the insured to insure the named property for a specific amount of insurance as required
by the insurance company - (Correct Answer) - Agreed Value
Physical harm to tangible property caused by peril (loss to property or person in which a covered
peril is the proximate cause of damage or destruction) - (Correct Answer) - Direct loss
The entity that is the "recipient" to the Principal - (Correct Answer) - Obligee
Insurance contracts are written on a take it or leave it basis to the policy owner. - (Correct
Answer) - Adhesion
Event or circumstance that causes damage - (Correct Answer) - Occurance
Coverage provides for payment of losses if civil authority denies access to the insured premises
due to a covered peril - (Correct Answer) - Civil Authority
Voluntary relinquishment of a known legal right - (Correct Answer) - Waiver
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100%
CORRECT | UPDATE 2025
The insurer and insured agree to a specific value of insured item - (Correct Answer) - Agreed
Value Policies
Someone who has care, custody or control of another's property - (Correct Answer) - Bailee
Claim filed by policy holder against his _ - (Correct Answer) - First Party Claim
When a person who entrusts another with an object and it results in injury to someone can be
held liable for the injury to someone. Can be held liable for the injury i.e. Firearm or DWI -
(Correct Answer) - Negligent Entrustment
Hazard that results from a conscious decision made by an insured to participate in a manner or
behavior more likely to result in a loss because they have insurance - (Correct Answer) - Moral
Hazard
Used to provide temporary insurance coverage until an insurance policy can be written - (Correct
Answer) - Binder
Required by lenders to guarantee that outstanding loans against a job are paid upon completion -
(Correct Answer) - Completion Bonds
The section of an insurance policy identifying the insured, endorsements, coverages, limits, and
premiums - (Correct Answer) - Declarations
,[Type here]
Policyholder cannot transfer the policy to someone else without written permission from their
insurance company - (Correct Answer) - Assignment
An instance, behavior or environment that increases the likelihood of a loss on an insured item -
(Correct Answer) - Hazard
Actual cause or source of an incidence of destruction, injury, or loss - (Correct Answer) - Peril
An insurance company organized and domiciled outside the US - (Correct Answer) - Alien
When there is an unbroken chain of events between an occurrence and a loss, then the loss is part
of the original occurrence - (Correct Answer) - Proximate Cause
Is proximate cause of all subsequent damages - (Correct Answer) - Original Occurance
An individual who contracts with an adjusting firm as an independent contractor and handles
claims for the insurance companies - (Correct Answer) - Independent Adjuster
Action or practice of the insured party is permitted to continue because any defense against a
continuation of said action or practice has been waived by the insurer - (Correct Answer) -
Estoppel
Operate for profit, collect premiums, reserve a portion of premiums to pay claims - (Correct
Answer) - Commercial Insurers
, [Type here]
Any person who investigates or adjusts losses on behalf of either an insurer or a self-insured -
(Correct Answer) - Independent Adjuster
The result of an insured's tort or wrongdoing. Consequences of a loss or amount or type of losses
suffered - (Correct Answer) - Damages
Requires the insured to insure the named property for a specific amount of insurance as required
by the insurance company - (Correct Answer) - Agreed Value
Physical harm to tangible property caused by peril (loss to property or person in which a covered
peril is the proximate cause of damage or destruction) - (Correct Answer) - Direct loss
The entity that is the "recipient" to the Principal - (Correct Answer) - Obligee
Insurance contracts are written on a take it or leave it basis to the policy owner. - (Correct
Answer) - Adhesion
Event or circumstance that causes damage - (Correct Answer) - Occurance
Coverage provides for payment of losses if civil authority denies access to the insured premises
due to a covered peril - (Correct Answer) - Civil Authority
Voluntary relinquishment of a known legal right - (Correct Answer) - Waiver
