FLORIDA PUBLIC ADJUSTER STATE TEST
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Xavier owns a small insurance company. Recently the company
want to bid to ensure a new housing development in Omaha,
Nebraska. His company can handle any claims that arise, but if a
series of tornadoes were to tear through the area and destroy the
entire development, Xavier's company would suffer financially.
Which type of insure could help Xavier's company protect itself the
most from this potential loss? Answer: A re-insurer
◉ Which of the following situations does NOT involve an instance of
"pure risk?" Answer: Loss of money invested in the stock market
◉ Which of the following is an insurable risk? Answer: A football
stadium
◉ A lightning strike causes one of those storage buildings on John's
farm to burn to the ground, added by the fuel tanks he kept in the
building. John knows he wasn't supposed to store any fuel in the
building, so he kept that piece of information to himself when he
files a claim. John's ensure made and I his claim based on his:
Answer: Concealment
,◉ Chain shed burned to the ground during a tornado, when the
Highwinds break a wall of the shed, knocking over a lantern inside.
What is the proximate cause of the loss? Answer: Wind
◉ Kevin plays in a brass band using two rare antique Alexander
tubas. Since they are no longer produced, the value of the tubas is
difficult to determine. Which type of policy would best indemnify
Kevin in this event that his two boys were damaged, lost, or stolen?
Answer: Agreed value policy
◉ Which settlement option is most often use when the claimant
misses work because of a bodily injury, but a settlement has not
been reached? Answer: Advance payment settlement
◉ Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a house fire and it will
cost $185,000 to rebuild it. Stacy's homeowner policy has a limit of
$178,000 and $1800 deductible. Typically, how much would adjuster
Andy calculate Stacy's final settlement amount to be Answer:
$178,000
◉ Stephanie is in the process of addressing George's auto claim.
Currently she is interviewing Shana, who witnessed George's
accident and stopped to help. In what stage of the claim process is
Stephanie currently working? Answer: Investigation
,◉ If a claimant has a history of similar claims, that could mean:
Answer: It is important to investigate for fraud
◉ If an insurer is unwilling to pay what the claimant is asking, the
adjuster must: Answer: Negotiate a settlement
◉ An insurance adjuster acts as a fiduciary agent for her employer.
Which of the following statements is FALSE about the adjuster's role
as a fiduciary agent? Answer: The adjuster may not give the claimant
materials showing how he came up with the settlement amount
◉ A staff adjuster is a: Answer: Salaried employee working for only
one insurer
◉ Marlene has been living in her $120,000 home for 31 years.
Because she has paid off the mortgage, she decides to save some
money on her monthly insurance premiums by reducing her
homeowners coverage to $40,000. After a severe hail storm totals
her roof, her adjuster estimates the damage at $12,000. Assuming
the insure imposes the standard coinsurance penalty, and ignoring
the deductible, how much will Marlene receive in the settlement
amount? Answer: $5,000
◉ Craig has an HO-3 policy covering his primary residence with a
Coverage A limit of $250,000, Coverage B limit of $25,000, and a
Coverage C limit of $150,000. Craig also has a cabin on the lake,
, which was burglarized. The thieves stole much of the cabin's
contents, for a total loss of $18,500. Ignoring any deductibles, how
much will Craig's HO-3 policy pay for this claim? Answer: $15,000
◉ Stan built a porch for his home three years ago at a cost of
$10,000. The value of the porch has depreciated by $6,000, and it
would cost $12,000 to replace it today. After Stan's porch burnt
down during a BBQ today, how much would a Standard Fire Policy
indemnify Stan for his porch? Answer: $6,000
◉ Which of the following statements is NOT true of endorsements?
Answer: And endorsed policy will always provide more coverage
than an unendorsed policy
◉ In a dwelling policy, how much will the Fire Department Service
charge coverage pay? Answer: Up to $500 if the fire department
charges for responding to a covered peril
◉ Bill's new home is in the final stages of construction, and he has
purchased an HO-2 policy to ensure his financial interest in the
property. This morning, Bill's contractor calls to tell him that an
electrical fire has destroyed his new kitchen, and all of the crown
molding that was supposed to be installed today has been stolen. It
will be $15,000 to rebuild the kitchen and another $4,200 to replace
the trim. How will Bill's ensure respond when he files a claim?
Answer: His insurer will pay $15,000 for a build the kitchen and
nothing for the stolen trim
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Xavier owns a small insurance company. Recently the company
want to bid to ensure a new housing development in Omaha,
Nebraska. His company can handle any claims that arise, but if a
series of tornadoes were to tear through the area and destroy the
entire development, Xavier's company would suffer financially.
Which type of insure could help Xavier's company protect itself the
most from this potential loss? Answer: A re-insurer
◉ Which of the following situations does NOT involve an instance of
"pure risk?" Answer: Loss of money invested in the stock market
◉ Which of the following is an insurable risk? Answer: A football
stadium
◉ A lightning strike causes one of those storage buildings on John's
farm to burn to the ground, added by the fuel tanks he kept in the
building. John knows he wasn't supposed to store any fuel in the
building, so he kept that piece of information to himself when he
files a claim. John's ensure made and I his claim based on his:
Answer: Concealment
,◉ Chain shed burned to the ground during a tornado, when the
Highwinds break a wall of the shed, knocking over a lantern inside.
What is the proximate cause of the loss? Answer: Wind
◉ Kevin plays in a brass band using two rare antique Alexander
tubas. Since they are no longer produced, the value of the tubas is
difficult to determine. Which type of policy would best indemnify
Kevin in this event that his two boys were damaged, lost, or stolen?
Answer: Agreed value policy
◉ Which settlement option is most often use when the claimant
misses work because of a bodily injury, but a settlement has not
been reached? Answer: Advance payment settlement
◉ Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a house fire and it will
cost $185,000 to rebuild it. Stacy's homeowner policy has a limit of
$178,000 and $1800 deductible. Typically, how much would adjuster
Andy calculate Stacy's final settlement amount to be Answer:
$178,000
◉ Stephanie is in the process of addressing George's auto claim.
Currently she is interviewing Shana, who witnessed George's
accident and stopped to help. In what stage of the claim process is
Stephanie currently working? Answer: Investigation
,◉ If a claimant has a history of similar claims, that could mean:
Answer: It is important to investigate for fraud
◉ If an insurer is unwilling to pay what the claimant is asking, the
adjuster must: Answer: Negotiate a settlement
◉ An insurance adjuster acts as a fiduciary agent for her employer.
Which of the following statements is FALSE about the adjuster's role
as a fiduciary agent? Answer: The adjuster may not give the claimant
materials showing how he came up with the settlement amount
◉ A staff adjuster is a: Answer: Salaried employee working for only
one insurer
◉ Marlene has been living in her $120,000 home for 31 years.
Because she has paid off the mortgage, she decides to save some
money on her monthly insurance premiums by reducing her
homeowners coverage to $40,000. After a severe hail storm totals
her roof, her adjuster estimates the damage at $12,000. Assuming
the insure imposes the standard coinsurance penalty, and ignoring
the deductible, how much will Marlene receive in the settlement
amount? Answer: $5,000
◉ Craig has an HO-3 policy covering his primary residence with a
Coverage A limit of $250,000, Coverage B limit of $25,000, and a
Coverage C limit of $150,000. Craig also has a cabin on the lake,
, which was burglarized. The thieves stole much of the cabin's
contents, for a total loss of $18,500. Ignoring any deductibles, how
much will Craig's HO-3 policy pay for this claim? Answer: $15,000
◉ Stan built a porch for his home three years ago at a cost of
$10,000. The value of the porch has depreciated by $6,000, and it
would cost $12,000 to replace it today. After Stan's porch burnt
down during a BBQ today, how much would a Standard Fire Policy
indemnify Stan for his porch? Answer: $6,000
◉ Which of the following statements is NOT true of endorsements?
Answer: And endorsed policy will always provide more coverage
than an unendorsed policy
◉ In a dwelling policy, how much will the Fire Department Service
charge coverage pay? Answer: Up to $500 if the fire department
charges for responding to a covered peril
◉ Bill's new home is in the final stages of construction, and he has
purchased an HO-2 policy to ensure his financial interest in the
property. This morning, Bill's contractor calls to tell him that an
electrical fire has destroyed his new kitchen, and all of the crown
molding that was supposed to be installed today has been stolen. It
will be $15,000 to rebuild the kitchen and another $4,200 to replace
the trim. How will Bill's ensure respond when he files a claim?
Answer: His insurer will pay $15,000 for a build the kitchen and
nothing for the stolen trim
