Florida Insurance Adjuster Exam Prep – Real Practice Questions,
Answers & Detailed Rationales (Updated 2026) | Florida
Insurance Laws & Regulations, Property & Casualty Claims Handling,
Policy Interpretation & Coverage Analysis, Claims Investigation &
Documentation, Loss Estimation & Settlement Negotiation, Ethics & Fraud
Prevention, Insurance Contracts, Adjuster Responsibilities & Real-World
Claims Scenarios
Question 1: Under Florida Statutes Chapter 626, which of the following individuals
is NOT required to hold a Florida insurance adjuster license?
A. An independent adjuster hired by an insurer to investigate property damage claims
B. A public adjuster representing a policyholder in negotiating a hurricane damage claim
C. A salaried employee of an insurer who investigates and adjusts claims for that insurer
only
D. A third-party administrator who adjusts workers' compensation claims for multiple
employers
CORRECT ANSWER: C. A salaried employee of an insurer who investigates and
adjusts claims for that insurer only
RationaleFlorida Statute 626.841 provides an exemption from adjuster licensing for
bona fide employees of an insurer who adjust claims only for their employer.
Independent adjusters, public adjusters, and third-party administrators adjusting
claims for multiple entities must be licensed.
www.flsenate.gov
Question 2: What is the maximum civil penalty the Florida Department of Financial
Services may impose for a single violation of the Insurance Code by a licensed
adjuster?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
CORRECT ANSWER: B. $5,000
RationaleUnder Florida Statute 626.621, the Department may impose an
administrative fine not exceeding $5,000 for each separate violation of the Insurance
Code or rules adopted thereunder by a licensed insurance representative, including
adjusters.
Question 3: Which Florida statute specifically governs the licensing, appointment,
and regulation of public adjusters?
A. Florida Statute 624.301
B. Florida Statute 626.854
,C. Florida Statute 627.351
D. Florida Statute 628.461
CORRECT ANSWER: B. Florida Statute 626.854
RationaleFlorida Statute 626.854 defines a "public adjuster" and establishes the
licensing requirements, duties, and regulatory framework for public adjusters in Florida,
distinguishing them from independent and company adjusters.
www.leg.state.fl.us
Question 4: In Florida, how long must a licensed insurance adjuster retain records
of transactions and claims files after the policy expiration or claim closure?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
CORRECT ANSWER: C. 5 years
RationaleFlorida Statute 626.748 requires every agent and adjuster transacting
insurance to maintain records of policies and claims for at least 5 years after policy
expiration to enable policyholders and the Department to obtain necessary information.
Question 5: Which of the following best describes the "fiduciary capacity"
requirement for Florida insurance adjusters?
A. Adjusters must carry fiduciary liability insurance in the amount of $100,000
B. Adjusters must hold premium funds in a separate trust account and remit them
promptly to the insurer
C. Adjusters must file a fiduciary bond with the Department before accepting any claim
assignments
D. Adjusters must disclose all fiduciary relationships with contractors or restoration
companies to claimants
CORRECT ANSWER: B. Adjusters must hold premium funds in a separate trust
account and remit them promptly to the insurer
RationaleFlorida law requires adjusters acting in a fiduciary capacity to maintain
premium funds in a separate, identifiable bank account and to remit those funds to the
insurer within a reasonable timeframe, typically not exceeding 30 days, to protect
consumer funds.
Question 6: Under Florida's unfair trade practices laws, which of the following
actions by an adjuster would constitute "misrepresentation"?
A. Failing to respond to a claimant's inquiry within 10 business days
B. Stating that a policy covers flood damage when the policy explicitly excludes flood
C. Charging a fee for preparing an estimate that exceeds the insurer's approved rate
,schedule
D. Refusing to accept a claim assignment due to a conflict of interest
CORRECT ANSWER: B. Stating that a policy covers flood damage when the policy
explicitly excludes flood
RationaleMisrepresentation under Florida Statute 626.952 includes making false
statements about the terms, benefits, or coverage of an insurance policy. Telling a
claimant that flood damage is covered when the policy excludes it is a clear violation.
Question 7: What is the primary purpose of Florida's hurricane deductible statute,
Section 627.701?
A. To eliminate deductibles for hurricane-related claims to expedite recovery
B. To require insurers to offer specific percentage-based hurricane deductible options
to policyholders
C. To cap hurricane deductibles at $500 for all residential properties
D. To allow insurers to deny hurricane claims if the policyholder did not install hurricane
shutters
CORRECT ANSWER: B. To require insurers to offer specific percentage-based
hurricane deductible options to policyholders
RationaleFlorida Statute 627.701 mandates that insurers offer hurricane deductible
options of $500, 2%, 5%, or 10% of the policy dwelling limits, ensuring consumers have
clear choices and understand their financial responsibility for hurricane-related losses.
ilabacalaw.com
Question 8: Which of the following is TRUE regarding Florida's Personal Injury
Protection (PIP) coverage requirements?
A. PIP coverage is optional for drivers who have health insurance
B. All registered vehicle owners must carry a minimum of $10,000 in PIP coverage
C. PIP benefits are only payable if the insured is found not at fault for the accident
D. PIP coverage may be waived in writing by the policyholder at the time of application
CORRECT ANSWER: B. All registered vehicle owners must carry a minimum of
$10,000 in PIP coverage
RationaleFlorida's no-fault law requires all registered vehicle owners to maintain a
minimum of $10,000 in Personal Injury Protection (PIP) coverage to cover medical
expenses and lost wages regardless of fault, as mandated by Florida Statute 627.736.
www.flhsmv.gov
Question 9: When adjusting a homeowners insurance claim in Florida, which
valuation method is typically used for Coverage A (Dwelling) under an HO-3 policy?
A. Actual Cash Value (ACV) only
B. Replacement Cost Value (RCV) only
, C. Market Value
D. Either ACV or RCV depending on the endorsement and policy terms
CORRECT ANSWER: D. Either ACV or RCV depending on the endorsement and
policy terms
RationaleStandard HO-3 policies in Florida typically provide Replacement Cost
coverage for the dwelling (Coverage A) if the policy includes the Replacement Cost
endorsement and the dwelling is insured to value. However, policies may be written on
an ACV basis, so the adjuster must verify the specific policy terms and endorsements.
Question 10: Under Florida law, what is the statutory timeframe for an insurer to
acknowledge receipt of a property insurance claim?
A. 5 business days
B. 10 business days
C. 14 calendar days
D. 30 calendar days
CORRECT ANSWER: C. 14 calendar days
RationaleFlorida Statute 627.70131 requires insurers to acknowledge receipt of a
property insurance claim within 14 calendar days of notification, unless payment is
made within that period or the insurer has a reasonable basis to believe the claim is
fraudulent.
Question 11: Which of the following best defines "subrogation" in the context of
insurance adjusting?
A. The process of assigning a claim to a third-party administrator for handling
B. The insurer's right to pursue recovery from a third party responsible for a loss after
paying the insured
C. The adjustment of a claim based on the proportional share of multiple insurance
policies
D. The waiver of the deductible by the insurer as a goodwill gesture
CORRECT ANSWER: B. The insurer's right to pursue recovery from a third party
responsible for a loss after paying the insured
RationaleSubrogation is a fundamental insurance principle allowing an insurer, after
indemnifying the insured for a covered loss, to step into the insured's legal position and
seek recovery from the party legally responsible for causing the loss.
Question 12: In Florida, what is the maximum percentage of the policy dwelling
limit that a hurricane deductible may represent?
A. 2%
B. 5%
C. 10%
D. 15%
Answers & Detailed Rationales (Updated 2026) | Florida
Insurance Laws & Regulations, Property & Casualty Claims Handling,
Policy Interpretation & Coverage Analysis, Claims Investigation &
Documentation, Loss Estimation & Settlement Negotiation, Ethics & Fraud
Prevention, Insurance Contracts, Adjuster Responsibilities & Real-World
Claims Scenarios
Question 1: Under Florida Statutes Chapter 626, which of the following individuals
is NOT required to hold a Florida insurance adjuster license?
A. An independent adjuster hired by an insurer to investigate property damage claims
B. A public adjuster representing a policyholder in negotiating a hurricane damage claim
C. A salaried employee of an insurer who investigates and adjusts claims for that insurer
only
D. A third-party administrator who adjusts workers' compensation claims for multiple
employers
CORRECT ANSWER: C. A salaried employee of an insurer who investigates and
adjusts claims for that insurer only
RationaleFlorida Statute 626.841 provides an exemption from adjuster licensing for
bona fide employees of an insurer who adjust claims only for their employer.
Independent adjusters, public adjusters, and third-party administrators adjusting
claims for multiple entities must be licensed.
www.flsenate.gov
Question 2: What is the maximum civil penalty the Florida Department of Financial
Services may impose for a single violation of the Insurance Code by a licensed
adjuster?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
CORRECT ANSWER: B. $5,000
RationaleUnder Florida Statute 626.621, the Department may impose an
administrative fine not exceeding $5,000 for each separate violation of the Insurance
Code or rules adopted thereunder by a licensed insurance representative, including
adjusters.
Question 3: Which Florida statute specifically governs the licensing, appointment,
and regulation of public adjusters?
A. Florida Statute 624.301
B. Florida Statute 626.854
,C. Florida Statute 627.351
D. Florida Statute 628.461
CORRECT ANSWER: B. Florida Statute 626.854
RationaleFlorida Statute 626.854 defines a "public adjuster" and establishes the
licensing requirements, duties, and regulatory framework for public adjusters in Florida,
distinguishing them from independent and company adjusters.
www.leg.state.fl.us
Question 4: In Florida, how long must a licensed insurance adjuster retain records
of transactions and claims files after the policy expiration or claim closure?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
CORRECT ANSWER: C. 5 years
RationaleFlorida Statute 626.748 requires every agent and adjuster transacting
insurance to maintain records of policies and claims for at least 5 years after policy
expiration to enable policyholders and the Department to obtain necessary information.
Question 5: Which of the following best describes the "fiduciary capacity"
requirement for Florida insurance adjusters?
A. Adjusters must carry fiduciary liability insurance in the amount of $100,000
B. Adjusters must hold premium funds in a separate trust account and remit them
promptly to the insurer
C. Adjusters must file a fiduciary bond with the Department before accepting any claim
assignments
D. Adjusters must disclose all fiduciary relationships with contractors or restoration
companies to claimants
CORRECT ANSWER: B. Adjusters must hold premium funds in a separate trust
account and remit them promptly to the insurer
RationaleFlorida law requires adjusters acting in a fiduciary capacity to maintain
premium funds in a separate, identifiable bank account and to remit those funds to the
insurer within a reasonable timeframe, typically not exceeding 30 days, to protect
consumer funds.
Question 6: Under Florida's unfair trade practices laws, which of the following
actions by an adjuster would constitute "misrepresentation"?
A. Failing to respond to a claimant's inquiry within 10 business days
B. Stating that a policy covers flood damage when the policy explicitly excludes flood
C. Charging a fee for preparing an estimate that exceeds the insurer's approved rate
,schedule
D. Refusing to accept a claim assignment due to a conflict of interest
CORRECT ANSWER: B. Stating that a policy covers flood damage when the policy
explicitly excludes flood
RationaleMisrepresentation under Florida Statute 626.952 includes making false
statements about the terms, benefits, or coverage of an insurance policy. Telling a
claimant that flood damage is covered when the policy excludes it is a clear violation.
Question 7: What is the primary purpose of Florida's hurricane deductible statute,
Section 627.701?
A. To eliminate deductibles for hurricane-related claims to expedite recovery
B. To require insurers to offer specific percentage-based hurricane deductible options
to policyholders
C. To cap hurricane deductibles at $500 for all residential properties
D. To allow insurers to deny hurricane claims if the policyholder did not install hurricane
shutters
CORRECT ANSWER: B. To require insurers to offer specific percentage-based
hurricane deductible options to policyholders
RationaleFlorida Statute 627.701 mandates that insurers offer hurricane deductible
options of $500, 2%, 5%, or 10% of the policy dwelling limits, ensuring consumers have
clear choices and understand their financial responsibility for hurricane-related losses.
ilabacalaw.com
Question 8: Which of the following is TRUE regarding Florida's Personal Injury
Protection (PIP) coverage requirements?
A. PIP coverage is optional for drivers who have health insurance
B. All registered vehicle owners must carry a minimum of $10,000 in PIP coverage
C. PIP benefits are only payable if the insured is found not at fault for the accident
D. PIP coverage may be waived in writing by the policyholder at the time of application
CORRECT ANSWER: B. All registered vehicle owners must carry a minimum of
$10,000 in PIP coverage
RationaleFlorida's no-fault law requires all registered vehicle owners to maintain a
minimum of $10,000 in Personal Injury Protection (PIP) coverage to cover medical
expenses and lost wages regardless of fault, as mandated by Florida Statute 627.736.
www.flhsmv.gov
Question 9: When adjusting a homeowners insurance claim in Florida, which
valuation method is typically used for Coverage A (Dwelling) under an HO-3 policy?
A. Actual Cash Value (ACV) only
B. Replacement Cost Value (RCV) only
, C. Market Value
D. Either ACV or RCV depending on the endorsement and policy terms
CORRECT ANSWER: D. Either ACV or RCV depending on the endorsement and
policy terms
RationaleStandard HO-3 policies in Florida typically provide Replacement Cost
coverage for the dwelling (Coverage A) if the policy includes the Replacement Cost
endorsement and the dwelling is insured to value. However, policies may be written on
an ACV basis, so the adjuster must verify the specific policy terms and endorsements.
Question 10: Under Florida law, what is the statutory timeframe for an insurer to
acknowledge receipt of a property insurance claim?
A. 5 business days
B. 10 business days
C. 14 calendar days
D. 30 calendar days
CORRECT ANSWER: C. 14 calendar days
RationaleFlorida Statute 627.70131 requires insurers to acknowledge receipt of a
property insurance claim within 14 calendar days of notification, unless payment is
made within that period or the insurer has a reasonable basis to believe the claim is
fraudulent.
Question 11: Which of the following best defines "subrogation" in the context of
insurance adjusting?
A. The process of assigning a claim to a third-party administrator for handling
B. The insurer's right to pursue recovery from a third party responsible for a loss after
paying the insured
C. The adjustment of a claim based on the proportional share of multiple insurance
policies
D. The waiver of the deductible by the insurer as a goodwill gesture
CORRECT ANSWER: B. The insurer's right to pursue recovery from a third party
responsible for a loss after paying the insured
RationaleSubrogation is a fundamental insurance principle allowing an insurer, after
indemnifying the insured for a covered loss, to step into the insured's legal position and
seek recovery from the party legally responsible for causing the loss.
Question 12: In Florida, what is the maximum percentage of the policy dwelling
limit that a hurricane deductible may represent?
A. 2%
B. 5%
C. 10%
D. 15%
