FLORIDA ADJUSTER 2026 EXAM QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔punitive damages - ✔✔awards money for malicious, willful misconduct on the part of
the tortfeasor.
✔✔the power to bind - ✔✔the principal may have to honor the adjusters decisions, even
when made in error
✔✔special damages - ✔✔damages that awards money for the exact value of tangible
damages
✔✔compensatory damages - ✔✔damages that award money for tangible and intangible
items
✔✔risk - ✔✔potential for financial loss
✔✔reserves - ✔✔money that is set aside for claims
✔✔insurer - ✔✔the company/organization offering protection
✔✔arbitration - ✔✔legally binding third party
✔✔structured settlement - ✔✔breaks up the indemnity into a series of smaller payments
✔✔no release settlement - ✔✔A settlement option whereby the insurer simply pays the
bills submitted by the claimant, but the claimant does not sign a release form to verify
the payment. Usually, the checks issued to indemnify the claimant act as a substitute for
a release form. Also known as "Walk-away" Settlement.
✔✔advanced payment release - ✔✔insurer makes multiple partial payments until the
final settlement is agreed on
✔✔comparitive negligence - ✔✔is when the negligence of the victim is compared to that
of the defendent. A victim who is partially responsible may collect only partial damage.
✔✔Contributory Negligence - ✔✔A rule in tort law, used in only a few states, that
completely bars the plaintiff from recovering any damages if the damage suffered is
partly the plaintiff's own fault.
✔✔partial release - ✔✔the insurer indemnify for property damage first, then bodily injury
when amount is available
✔✔endorsement - ✔✔addition of coverage to an insurance policy
, ✔✔insurance - ✔✔a practice or arrangement by which a company or government
agency provides a guarantee of compensation for specified loss, damage, illness, or
death in return for payment of a premium.
✔✔mediation - ✔✔a neutral third party that only advises in negotiation and is not legally
binding
✔✔criminal trial - ✔✔state vs. person
✔✔civil trial - ✔✔person vs. person
✔✔schedule payment release - ✔✔settlement option where the insurer pays all
compensatory damages, and agrees to pay for certain future incidentals
✔✔full release - ✔✔insurer writes one check to cover all damages; claimant signs a full
release form
✔✔insured - ✔✔covered by an insurance policy and pays a premium
✔✔first party claim - ✔✔claim made by the policy holder on their own policy
✔✔third party claim - ✔✔claim made by anyone other than the policy holder
✔✔valuation - ✔✔process of estimating what an item is worth
✔✔deductible - ✔✔Amount you must pay before you begin receiving any benefits from
your insurance company
✔✔liability insurance - ✔✔protects policy holder when they cause damage or injuries to
another party
✔✔negligence - ✔✔failure to use a reasonable degree of care that results in injury or
damage to another party
✔✔single limit liability - ✔✔fixed limit for each type of damage
✔✔split limit liability - ✔✔max paid for bodily injury of one person, max paid for bodily
injury of multiple persons, max paid for property damage
✔✔aggregate limit liability - ✔✔max payout per occurrence, max pay out per policy
period
✔✔statutory law - ✔✔based on written laws
ANSWERS GUARANTEE A+
✔✔punitive damages - ✔✔awards money for malicious, willful misconduct on the part of
the tortfeasor.
✔✔the power to bind - ✔✔the principal may have to honor the adjusters decisions, even
when made in error
✔✔special damages - ✔✔damages that awards money for the exact value of tangible
damages
✔✔compensatory damages - ✔✔damages that award money for tangible and intangible
items
✔✔risk - ✔✔potential for financial loss
✔✔reserves - ✔✔money that is set aside for claims
✔✔insurer - ✔✔the company/organization offering protection
✔✔arbitration - ✔✔legally binding third party
✔✔structured settlement - ✔✔breaks up the indemnity into a series of smaller payments
✔✔no release settlement - ✔✔A settlement option whereby the insurer simply pays the
bills submitted by the claimant, but the claimant does not sign a release form to verify
the payment. Usually, the checks issued to indemnify the claimant act as a substitute for
a release form. Also known as "Walk-away" Settlement.
✔✔advanced payment release - ✔✔insurer makes multiple partial payments until the
final settlement is agreed on
✔✔comparitive negligence - ✔✔is when the negligence of the victim is compared to that
of the defendent. A victim who is partially responsible may collect only partial damage.
✔✔Contributory Negligence - ✔✔A rule in tort law, used in only a few states, that
completely bars the plaintiff from recovering any damages if the damage suffered is
partly the plaintiff's own fault.
✔✔partial release - ✔✔the insurer indemnify for property damage first, then bodily injury
when amount is available
✔✔endorsement - ✔✔addition of coverage to an insurance policy
, ✔✔insurance - ✔✔a practice or arrangement by which a company or government
agency provides a guarantee of compensation for specified loss, damage, illness, or
death in return for payment of a premium.
✔✔mediation - ✔✔a neutral third party that only advises in negotiation and is not legally
binding
✔✔criminal trial - ✔✔state vs. person
✔✔civil trial - ✔✔person vs. person
✔✔schedule payment release - ✔✔settlement option where the insurer pays all
compensatory damages, and agrees to pay for certain future incidentals
✔✔full release - ✔✔insurer writes one check to cover all damages; claimant signs a full
release form
✔✔insured - ✔✔covered by an insurance policy and pays a premium
✔✔first party claim - ✔✔claim made by the policy holder on their own policy
✔✔third party claim - ✔✔claim made by anyone other than the policy holder
✔✔valuation - ✔✔process of estimating what an item is worth
✔✔deductible - ✔✔Amount you must pay before you begin receiving any benefits from
your insurance company
✔✔liability insurance - ✔✔protects policy holder when they cause damage or injuries to
another party
✔✔negligence - ✔✔failure to use a reasonable degree of care that results in injury or
damage to another party
✔✔single limit liability - ✔✔fixed limit for each type of damage
✔✔split limit liability - ✔✔max paid for bodily injury of one person, max paid for bodily
injury of multiple persons, max paid for property damage
✔✔aggregate limit liability - ✔✔max payout per occurrence, max pay out per policy
period
✔✔statutory law - ✔✔based on written laws
