Florida 3-20 Public Adjuster Exam
Outlines Questions With Complete
Solutions
626.854 (3) - CORRECT ANSWERS A public adjuster may not give legal advice or act on behalf
of or aid any person in negotiating or settling a claim relating to bodily injury, death, or noneconomic
damages.
626.854 (5) - CORRECT ANSWERS A public adjuster may not directly or indirectly through
any other person or entity solicit an insured or claimant by any means except on Monday through
Saturday of each week and only between the hours of 8 a.m. and 8 p.m. on those days.
626.854 (6) - CORRECT ANSWERS An insured or claimant may cancel a public adjuster's
contract to adjust a claim without penalty or obligation within 3 business days after the date on which
the contract is executed or within 3 business days after the date on which the insured or claimant has
notified the insurer of the claim, whichever is later. The public adjuster's contract must disclose to the
insured or claimant his or her right to cancel the contract and advise the insured or claimant that notice
of cancellation must be submitted in writing and sent by certified mail, return receipt requested, or
other form of mailing that provides proof thereof, to the public adjuster at the address specified in the
contract; provided, during any state of emergency as declared by the Governor and for 1 year after the
date of loss, the insured or claimant has 10 business days after the date on which the contract is
executed to cancel a public adjuster's contract.
626.854 (7) - CORRECT ANSWERS It is an unfair and deceptive insurance trade practice
pursuant to s. 626.9541 for a public adjuster or any other person to circulate or disseminate any
advertisement, announcement, or statement containing any assertion, representation, or statement
with respect to the business of insurance which is untrue, deceptive, or misleading.
626.854 (7) (a) - CORRECT ANSWERS The following statements, made in any public adjuster's
advertisement or solicitation, are considered deceptive or misleading:
1. A statement or representation that invites an insured policyholder to submit a claim when the
policyholder does not have covered damage to insured property.
,2. A statement or representation that invites an insured policyholder to submit a claim by offering
monetary or other valuable inducement.
3. A statement or representation that invites an insured policyholder to submit a claim by stating that
there is "no risk" to the policyholder by submitting such claim.
4. A statement or representation, or use of a logo or shield, that implies or could mistakenly be
construed to imply that the solicitation was issued or distributed by a governmental agency or is
sanctioned or endorsed by a governmental agency.
626.854 (7) (b) - CORRECT ANSWERS For purposes of this paragraph, the term "written
advertisement" includes only newspapers, magazines, flyers, and bulk mailers. The following disclaimer,
which is not required to be printed on standard size business cards, must be added in bold print and
capital letters in typeface no smaller than the typeface of the body of the text to all written
advertisements by a public adjuster:
"THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED PROPERTY LOSS
OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY DISREGARD
THIS ADVERTISEMENT."
626.854 (8) - CORRECT ANSWERS A public adjuster, a public adjuster apprentice, or any
person or entity acting on behalf of a public adjuster or public adjuster apprentice may not give or offer
to give a monetary loan or advance to a client or prospective client.
626.854 (9) - CORRECT ANSWERS A public adjuster, public adjuster apprentice, or any
individual or entity acting on behalf of a public adjuster or public adjuster apprentice may not give or
offer to give, directly or indirectly, any article of merchandise having a value in excess of $25 to any
individual for the purpose of advertising or as an inducement to entering into a contract with a public
adjuster.
626.854 (10) (a) - CORRECT ANSWERS If a public adjuster enters into a contract with an
insured or claimant to reopen a claim or file a supplemental claim that seeks additional payments for a
claim that has been previously paid in part or in full or settled by the insurer, the public adjuster may not
charge, agree to, or accept from any source compensation, payment, commission, fee, or any other
thing of value based on a previous settlement or previous claim payments by the insurer for the same
cause of loss. The charge, compensation, payment, commission, fee, or any other thing of value must be
based only on the claim payments or settlement obtained through the work of the public adjuster after
, entering into the contract with the insured or claimant. Compensation for the reopened or
supplemental claim may not exceed 20 percent of the reopened or supplemental claim payment. In no
event shall the contracts described in this paragraph exceed the limitations in paragraph (b).
626.854 (10) (b) - CORRECT ANSWERS A public adjuster may not charge, agree to, or accept
from any source compensation, payment, commission, fee, or any other thing of value in excess of:
1. Ten percent of the amount of insurance claim payments made by the insurer for claims based on
events that are the subject of a declaration of a state of emergency by the Governor. This provision
applies to claims made during the year after the declaration of emergency. After that year, the
limitations in subparagraph 2. apply.
2. Twenty percent of the amount of insurance claim payments made by the insurer for claims that are
not based on events that are the subject of a declaration of a state of emergency by the Governor.
626.854 (10) (c) - CORRECT ANSWERS Insurance claim payments made by the insurer do not
include policy deductibles, and public adjuster compensation may not be based on the deductible
portion of a claim.
626.854 (10) (d) - CORRECT ANSWERS Any maneuver, shift, or device through which the
limits on compensation set forth in this subsection are exceeded is a violation of this chapter punishable
as provided under s. 626.8698.
626.854 (11) - CORRECT ANSWERS Each public adjuster must provide to the claimant or
insured a written estimate of the loss to assist in the submission of a proof of loss or any other claim for
payment of insurance proceeds. The public adjuster shall retain such written estimate for at least 5
years and shall make the estimate available to the claimant or insured, the insurer, and the department
upon request.
626.854 (12) - CORRECT ANSWERS A public adjuster, public adjuster apprentice, or any
person acting on behalf of a public adjuster or apprentice may not accept referrals of business from any
person with whom the public adjuster conducts business if there is any form or manner of agreement to
compensate the person, directly or indirectly, for referring business to the public adjuster. A public
adjuster may not compensate any person, except for another public adjuster, directly or indirectly, for
the principal purpose of referring business to the public adjuster.
Outlines Questions With Complete
Solutions
626.854 (3) - CORRECT ANSWERS A public adjuster may not give legal advice or act on behalf
of or aid any person in negotiating or settling a claim relating to bodily injury, death, or noneconomic
damages.
626.854 (5) - CORRECT ANSWERS A public adjuster may not directly or indirectly through
any other person or entity solicit an insured or claimant by any means except on Monday through
Saturday of each week and only between the hours of 8 a.m. and 8 p.m. on those days.
626.854 (6) - CORRECT ANSWERS An insured or claimant may cancel a public adjuster's
contract to adjust a claim without penalty or obligation within 3 business days after the date on which
the contract is executed or within 3 business days after the date on which the insured or claimant has
notified the insurer of the claim, whichever is later. The public adjuster's contract must disclose to the
insured or claimant his or her right to cancel the contract and advise the insured or claimant that notice
of cancellation must be submitted in writing and sent by certified mail, return receipt requested, or
other form of mailing that provides proof thereof, to the public adjuster at the address specified in the
contract; provided, during any state of emergency as declared by the Governor and for 1 year after the
date of loss, the insured or claimant has 10 business days after the date on which the contract is
executed to cancel a public adjuster's contract.
626.854 (7) - CORRECT ANSWERS It is an unfair and deceptive insurance trade practice
pursuant to s. 626.9541 for a public adjuster or any other person to circulate or disseminate any
advertisement, announcement, or statement containing any assertion, representation, or statement
with respect to the business of insurance which is untrue, deceptive, or misleading.
626.854 (7) (a) - CORRECT ANSWERS The following statements, made in any public adjuster's
advertisement or solicitation, are considered deceptive or misleading:
1. A statement or representation that invites an insured policyholder to submit a claim when the
policyholder does not have covered damage to insured property.
,2. A statement or representation that invites an insured policyholder to submit a claim by offering
monetary or other valuable inducement.
3. A statement or representation that invites an insured policyholder to submit a claim by stating that
there is "no risk" to the policyholder by submitting such claim.
4. A statement or representation, or use of a logo or shield, that implies or could mistakenly be
construed to imply that the solicitation was issued or distributed by a governmental agency or is
sanctioned or endorsed by a governmental agency.
626.854 (7) (b) - CORRECT ANSWERS For purposes of this paragraph, the term "written
advertisement" includes only newspapers, magazines, flyers, and bulk mailers. The following disclaimer,
which is not required to be printed on standard size business cards, must be added in bold print and
capital letters in typeface no smaller than the typeface of the body of the text to all written
advertisements by a public adjuster:
"THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED PROPERTY LOSS
OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY DISREGARD
THIS ADVERTISEMENT."
626.854 (8) - CORRECT ANSWERS A public adjuster, a public adjuster apprentice, or any
person or entity acting on behalf of a public adjuster or public adjuster apprentice may not give or offer
to give a monetary loan or advance to a client or prospective client.
626.854 (9) - CORRECT ANSWERS A public adjuster, public adjuster apprentice, or any
individual or entity acting on behalf of a public adjuster or public adjuster apprentice may not give or
offer to give, directly or indirectly, any article of merchandise having a value in excess of $25 to any
individual for the purpose of advertising or as an inducement to entering into a contract with a public
adjuster.
626.854 (10) (a) - CORRECT ANSWERS If a public adjuster enters into a contract with an
insured or claimant to reopen a claim or file a supplemental claim that seeks additional payments for a
claim that has been previously paid in part or in full or settled by the insurer, the public adjuster may not
charge, agree to, or accept from any source compensation, payment, commission, fee, or any other
thing of value based on a previous settlement or previous claim payments by the insurer for the same
cause of loss. The charge, compensation, payment, commission, fee, or any other thing of value must be
based only on the claim payments or settlement obtained through the work of the public adjuster after
, entering into the contract with the insured or claimant. Compensation for the reopened or
supplemental claim may not exceed 20 percent of the reopened or supplemental claim payment. In no
event shall the contracts described in this paragraph exceed the limitations in paragraph (b).
626.854 (10) (b) - CORRECT ANSWERS A public adjuster may not charge, agree to, or accept
from any source compensation, payment, commission, fee, or any other thing of value in excess of:
1. Ten percent of the amount of insurance claim payments made by the insurer for claims based on
events that are the subject of a declaration of a state of emergency by the Governor. This provision
applies to claims made during the year after the declaration of emergency. After that year, the
limitations in subparagraph 2. apply.
2. Twenty percent of the amount of insurance claim payments made by the insurer for claims that are
not based on events that are the subject of a declaration of a state of emergency by the Governor.
626.854 (10) (c) - CORRECT ANSWERS Insurance claim payments made by the insurer do not
include policy deductibles, and public adjuster compensation may not be based on the deductible
portion of a claim.
626.854 (10) (d) - CORRECT ANSWERS Any maneuver, shift, or device through which the
limits on compensation set forth in this subsection are exceeded is a violation of this chapter punishable
as provided under s. 626.8698.
626.854 (11) - CORRECT ANSWERS Each public adjuster must provide to the claimant or
insured a written estimate of the loss to assist in the submission of a proof of loss or any other claim for
payment of insurance proceeds. The public adjuster shall retain such written estimate for at least 5
years and shall make the estimate available to the claimant or insured, the insurer, and the department
upon request.
626.854 (12) - CORRECT ANSWERS A public adjuster, public adjuster apprentice, or any
person acting on behalf of a public adjuster or apprentice may not accept referrals of business from any
person with whom the public adjuster conducts business if there is any form or manner of agreement to
compensate the person, directly or indirectly, for referring business to the public adjuster. A public
adjuster may not compensate any person, except for another public adjuster, directly or indirectly, for
the principal purpose of referring business to the public adjuster.
