FLORIDA CLAIMS ADJUSTER EXAM: (LATEST 2026/2027 UPDATE), QUESTIONS & VERIFIED ANSWERS | 100% CORRECT | GRADE A

FLORIDA CLAIMS ADJUSTER EXAM:
(LATEST 2026/2027 UPDATE), QUESTIONS &
VERIFIED ANSWERS | 100% CORRECT |
GRADE A
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FLORIDA CLAIMS ADJUSTER

Florida Claims Adjuster Exam

Questions with 100% Correct Answers & Detailed Rationales

Questions 1–200



1. Frank owned a home that was destroyed by a hurricane. Both
ABC and XYZ Banks were listed as additional interests on his
homeowner policy. The insurance company will make a payment to:

A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests

Rationale:
When multiple additional interests are listed on a policy, the insurer must include all of
them on the claim payment. The insurer does not determine priority or degree of
interest between mortgagees. Its obligation is limited to issuing a single payment
naming all listed interests. Any allocation of funds is handled between the mortgage
holders themselves.



2. Insurance applies separately to each insured as if other insureds
did not exist. This is defined as:

A. Severability
B. Conditional

,C. Warranty
D. None of the above

Rationale:
The severability clause ensures that coverage applies independently to each insured
under the policy. This means one insured’s actions do not automatically void coverage
for another insured. It is especially important in liability situations involving multiple
insured parties. Florida policies commonly include this provision.



3. Property insurance policies usually contain a(n) __________ clause,
stating the insured cannot dump damaged property on the insurer
and demand its full value:

A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above

Rationale:
The abandonment clause prevents the insured from forcing the insurer to accept
damaged property in exchange for full payment. Ownership of the property remains
with the insured unless the insurer specifically takes possession. This protects insurers
from unnecessary salvage responsibilities. It reinforces the principle of indemnity.



4. A(n) __________ is one wherein economic loss would be suffered
from an adverse happening to the subject:

A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest

Rationale:
Insurable interest exists when a person would suffer financial loss if the insured
property were damaged or destroyed. It must exist at the time of loss for property
insurance. Without insurable interest, an insurance contract becomes a wagering
agreement. Florida law strictly enforces this requirement.

,5. States that if the insurer adopts a revision which broadens
coverage without additional premium, the insured receives the
benefit:

A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization

Rationale:
The liberalization clause automatically applies coverage enhancements made by the
insurer during the policy period. This ensures insureds benefit from improvements
without paying extra premium. Typically, the window is 60 days before or during the
policy term. It promotes fairness and uniformity.



6. The __________ states that when there is an unbroken connection
between an occurrence and damage, all damage is part of the
occurrence:

A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance

Rationale:
The doctrine of proximate cause determines the dominant cause of a loss when
multiple events contribute. If a covered peril initiates the chain of events, resulting
damage is covered. This applies even if subsequent damage comes from excluded
causes. Florida courts frequently rely on this doctrine.



7. The loss settlement valuation that subtracts depreciation is:

A. Actual Cash Value
B. Replacement Cost
C. Old for New
D. None of the Above

Rationale:
Actual Cash Value (ACV) reflects the depreciated value of property at the time of loss.
It accounts for age, wear, and obsolescence. ACV prevents over-indemnification of the
insured. It is commonly used in Florida property claims.

, 8. A policy condition based on information in the insured’s
application is a:

A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above

Rationale:
A warranty is a guaranteed statement made by the insured that becomes part of the
contract. If breached, coverage may be voided regardless of intent. Florida law treats
warranties strictly. Accuracy during application is critical.



9. Which is NOT a basic characteristic of property or liability
insurance?

A. Personal Contract
B. Conditional Contract
C. Loss Settlement Contract
D. Contract of Adhesion

Rationale:
Insurance contracts are personal, conditional, and contracts of adhesion. “Loss
settlement contract” is not a recognized contract characteristic. Loss settlement refers
to claim payment methods, not contract structure. Understanding contract principles
is essential for adjusters.



10. The insurer’s responsibility to pay may depend on the insured
protecting property and submitting proof of loss. This defines:

A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above

Rationale:
Insurance policies are conditional contracts because coverage depends on compliance
with policy conditions. These include mitigating damages and cooperating with the
insurer. Failure to meet conditions can reduce or eliminate payment. Florida policies
emphasize post-loss duties.