Florida Public Adjuster Exam Practice
Questions And Correct Answers
(Verified Answers) Plus Rationale 2026
Q&A| Instant Download Pdf
1. A Florida public adjuster is primarily licensed to represent which party
in an insurance claim?
A. The insurer
B. The reinsurer
C. The insured or claimant
D. The insurance regulator
Rationale: A public adjuster represents policyholders and assists them in
preparing, presenting, and negotiating insurance claims with insurers.
2. Which Florida agency regulates the licensing of public adjusters?
A. Florida Department of Revenue
B. Florida Department of Financial Services
C. Florida Department of Commerce
D. Florida Attorney General's Office
Rationale: The Florida Department of Financial Services oversees licensing,
compliance, and enforcement activities involving insurance professionals,
including public adjusters.
, 3. A public adjuster may legally perform all of the following except:
A. Evaluate covered damages
B. Negotiate claim settlements
C. Assist in claim preparation
D. Underwrite insurance policies
Rationale: Underwriting is an insurer function and is not within the
authority of a licensed public adjuster.
4. The fiduciary duty of a public adjuster requires the adjuster to:
A. Prioritize insurer interests
B. Act in the best interests of the client
C. Maximize company profits
D. Avoid communicating with policyholders
Rationale: Public adjusters owe a fiduciary duty to their clients and must
act honestly, loyally, and competently on their behalf.
5. An insurance policy is considered a contract of:
A. Warranty
B. Adhesion
C. Bailment
D. Agency only
Rationale: Insurance policies are contracts of adhesion because the insurer
drafts the policy and the insured generally accepts or rejects it as written.
6. Which principle prevents an insured from profiting from a loss?
A. Waiver
B. Estoppel
C. Indemnity
D. Concealment
, Rationale: The principle of indemnity seeks to restore the insured to the
approximate financial condition existing before the loss.
7. Actual Cash Value generally equals:
A. Replacement cost plus appreciation
B. Replacement cost minus depreciation
C. Market value plus taxes
D. Purchase price only
Rationale: Actual Cash Value typically reflects replacement cost reduced by
depreciation attributable to age, wear, and obsolescence.
8. Replacement Cost coverage differs from Actual Cash Value because it:
A. Ignores policy limits
B. Does not deduct depreciation when conditions are met
C. Excludes building losses
D. Covers only personal property
Rationale: Replacement Cost coverage reimburses the cost to replace
damaged property without depreciation, subject to policy provisions.
9. Which document generally provides the specific coverages, limits, and
deductibles applicable to a policy?
A. Endorsement schedule only
B. Insurance application
C. Declarations page
D. Proof of loss form
Rationale: The declarations page summarizes key policy information,
including insured property, limits, and deductibles.
10. A deductible primarily serves to:
Questions And Correct Answers
(Verified Answers) Plus Rationale 2026
Q&A| Instant Download Pdf
1. A Florida public adjuster is primarily licensed to represent which party
in an insurance claim?
A. The insurer
B. The reinsurer
C. The insured or claimant
D. The insurance regulator
Rationale: A public adjuster represents policyholders and assists them in
preparing, presenting, and negotiating insurance claims with insurers.
2. Which Florida agency regulates the licensing of public adjusters?
A. Florida Department of Revenue
B. Florida Department of Financial Services
C. Florida Department of Commerce
D. Florida Attorney General's Office
Rationale: The Florida Department of Financial Services oversees licensing,
compliance, and enforcement activities involving insurance professionals,
including public adjusters.
, 3. A public adjuster may legally perform all of the following except:
A. Evaluate covered damages
B. Negotiate claim settlements
C. Assist in claim preparation
D. Underwrite insurance policies
Rationale: Underwriting is an insurer function and is not within the
authority of a licensed public adjuster.
4. The fiduciary duty of a public adjuster requires the adjuster to:
A. Prioritize insurer interests
B. Act in the best interests of the client
C. Maximize company profits
D. Avoid communicating with policyholders
Rationale: Public adjusters owe a fiduciary duty to their clients and must
act honestly, loyally, and competently on their behalf.
5. An insurance policy is considered a contract of:
A. Warranty
B. Adhesion
C. Bailment
D. Agency only
Rationale: Insurance policies are contracts of adhesion because the insurer
drafts the policy and the insured generally accepts or rejects it as written.
6. Which principle prevents an insured from profiting from a loss?
A. Waiver
B. Estoppel
C. Indemnity
D. Concealment
, Rationale: The principle of indemnity seeks to restore the insured to the
approximate financial condition existing before the loss.
7. Actual Cash Value generally equals:
A. Replacement cost plus appreciation
B. Replacement cost minus depreciation
C. Market value plus taxes
D. Purchase price only
Rationale: Actual Cash Value typically reflects replacement cost reduced by
depreciation attributable to age, wear, and obsolescence.
8. Replacement Cost coverage differs from Actual Cash Value because it:
A. Ignores policy limits
B. Does not deduct depreciation when conditions are met
C. Excludes building losses
D. Covers only personal property
Rationale: Replacement Cost coverage reimburses the cost to replace
damaged property without depreciation, subject to policy provisions.
9. Which document generally provides the specific coverages, limits, and
deductibles applicable to a policy?
A. Endorsement schedule only
B. Insurance application
C. Declarations page
D. Proof of loss form
Rationale: The declarations page summarizes key policy information,
including insured property, limits, and deductibles.
10. A deductible primarily serves to:
