FLORIDA PUBLIC ADJUSTER 3-20 VERSION A,B & C
NEW UPDATE 2026-2027 ACTUAL EXAM QUESTIONS
AND DETAILED ANSWERS GUARANTEED PASS
GRADED A+ (REVISED)
How is property covered under an unendorsed BOP form?
Coverage is written on an open peril basis
An insurance adjuster is allowed to enter a privately owned building when:
If the adjuster has the consent of the owner
An insurance company that generally fails to affirm or deny coverage of claims within a reasonable
period of time after receiving proof of loss may be found guilty of:
An unfair claims settlement practice.
An insurance professional that is accused of dishonesty or breach of trust involving interstate commerce
under the Federal Fraud and False Statement Regulation of the United States Code (USC 1033) will be
prosecuted by:
The U.S. Attorney general
An insured has a HO-5 Homeowner Policy; they have insured the wife's diamond ring and the husband's
guns on a personal articles floater. All of the items are stolen. What policy and deductibles would apply?
The homeowner policy would not pay and the personal articles floater would pay without a
deductible.
,An insured has an HO-3 policy. They have insured the wife's diamond ring and the husband's gun
collection on a personal articles floater. All of the items are stolen. What policy and deductibles would
apply?
The homeowner policy would not pay and the personal articles floater would pay without a
deductible.
An insured has damaged his vehicle by striking a tree. He can:I. Take the car to a repair garage
recommended by the insurer.II. Take the car to a garage of his choice.III. Accept payment based on the
adjuster's estimate.
I, II and III
An insured has fabricated a claim that would appear to be legitimate. What kind of hazard would this act
represent?
Moral hazard.
An insured has purchased a personal watercraft policy with liability limits of $300,000 and medical
coverage in the amount of $5,000. The boat accidentally tips over and both the insured and a friend are
injured. Who would be covered under the medical payments coverage?
The insured and the friend
An insured has suffered a covered collision loss to her vehicle. The insurer has insisted that the insured
have the vehicle repaired at a repair shop of the company's choice. The insurer:
Is guilty of an unfair claims practice act.
An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is worth
$1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under the pair and
set clause the insurance company will pay a maximum of which of the following amounts?
$7,000
,An insured owns very old equipment. Much of it is no longer manufactured but is still functional. The
insurer may wish to insure the equipment under an Equipment Breakdown policy by attaching the:
Actual cash value endorsement
An insured purchased a 10-year-old building for $50,000 that would cost $100,000 to rebuild today. If
the physical value of the building has depreciated $2,000 each year, the building's present actual cash
value is:
$80,000
An insured's boat is struck by another boat. He and his family are injured. His boat sinks because of the
damage. An investigation determines that the party that caused the accident is not insured. If the
insured carries a watercraft policy, what coverages would apply?
Uninsured boater's coverage and hull insurance
An insured's loss payment is reduced by depreciation. Which of the following best describes this
situation?
Actual Cash Value
An insurer has decided to non-renew a Homeowner policy which has a mortgagee clause. Who must be
notified of this action?
The Insured and the Mortgagee
An insurer that avoids writing insurance in a specific area or cancels or nonrenews policies because of
the location of the property is guilty of:
Boycotting.
, An Optional Commercial Property Coverage which automatically increases the limit of insurance by an
annual percentage shown in the form is called:
Inflation guard coverage.
An unendorsed commercial building and personal property form, loss valuation is based on
Actual cash value.
Any misinformation provided by an applicant which is such that the insurance company would not have
issued a policy if the true facts were known is:
Material misrepresentation
Businessowners policies provide "Preservation of Property" coverage when property is removed from
the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up
to:
30 days
Businessowners policies provide removal coverage when property is removed from the premises to
protect it from loss. The coverage will apply at other locations for up to:
30 days
Coinsurance does not apply when:
The insured suffers a total loss of the property
NEW UPDATE 2026-2027 ACTUAL EXAM QUESTIONS
AND DETAILED ANSWERS GUARANTEED PASS
GRADED A+ (REVISED)
How is property covered under an unendorsed BOP form?
Coverage is written on an open peril basis
An insurance adjuster is allowed to enter a privately owned building when:
If the adjuster has the consent of the owner
An insurance company that generally fails to affirm or deny coverage of claims within a reasonable
period of time after receiving proof of loss may be found guilty of:
An unfair claims settlement practice.
An insurance professional that is accused of dishonesty or breach of trust involving interstate commerce
under the Federal Fraud and False Statement Regulation of the United States Code (USC 1033) will be
prosecuted by:
The U.S. Attorney general
An insured has a HO-5 Homeowner Policy; they have insured the wife's diamond ring and the husband's
guns on a personal articles floater. All of the items are stolen. What policy and deductibles would apply?
The homeowner policy would not pay and the personal articles floater would pay without a
deductible.
,An insured has an HO-3 policy. They have insured the wife's diamond ring and the husband's gun
collection on a personal articles floater. All of the items are stolen. What policy and deductibles would
apply?
The homeowner policy would not pay and the personal articles floater would pay without a
deductible.
An insured has damaged his vehicle by striking a tree. He can:I. Take the car to a repair garage
recommended by the insurer.II. Take the car to a garage of his choice.III. Accept payment based on the
adjuster's estimate.
I, II and III
An insured has fabricated a claim that would appear to be legitimate. What kind of hazard would this act
represent?
Moral hazard.
An insured has purchased a personal watercraft policy with liability limits of $300,000 and medical
coverage in the amount of $5,000. The boat accidentally tips over and both the insured and a friend are
injured. Who would be covered under the medical payments coverage?
The insured and the friend
An insured has suffered a covered collision loss to her vehicle. The insurer has insisted that the insured
have the vehicle repaired at a repair shop of the company's choice. The insurer:
Is guilty of an unfair claims practice act.
An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is worth
$1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under the pair and
set clause the insurance company will pay a maximum of which of the following amounts?
$7,000
,An insured owns very old equipment. Much of it is no longer manufactured but is still functional. The
insurer may wish to insure the equipment under an Equipment Breakdown policy by attaching the:
Actual cash value endorsement
An insured purchased a 10-year-old building for $50,000 that would cost $100,000 to rebuild today. If
the physical value of the building has depreciated $2,000 each year, the building's present actual cash
value is:
$80,000
An insured's boat is struck by another boat. He and his family are injured. His boat sinks because of the
damage. An investigation determines that the party that caused the accident is not insured. If the
insured carries a watercraft policy, what coverages would apply?
Uninsured boater's coverage and hull insurance
An insured's loss payment is reduced by depreciation. Which of the following best describes this
situation?
Actual Cash Value
An insurer has decided to non-renew a Homeowner policy which has a mortgagee clause. Who must be
notified of this action?
The Insured and the Mortgagee
An insurer that avoids writing insurance in a specific area or cancels or nonrenews policies because of
the location of the property is guilty of:
Boycotting.
, An Optional Commercial Property Coverage which automatically increases the limit of insurance by an
annual percentage shown in the form is called:
Inflation guard coverage.
An unendorsed commercial building and personal property form, loss valuation is based on
Actual cash value.
Any misinformation provided by an applicant which is such that the insurance company would not have
issued a policy if the true facts were known is:
Material misrepresentation
Businessowners policies provide "Preservation of Property" coverage when property is removed from
the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up
to:
30 days
Businessowners policies provide removal coverage when property is removed from the premises to
protect it from loss. The coverage will apply at other locations for up to:
30 days
Coinsurance does not apply when:
The insured suffers a total loss of the property
