FLORIDA 3 20 PUBLIC ADJUSTER STATE
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Florida 3-20 Public Adjuster State Exam: Phase 1
1. A public adjuster is retained by a commercial property
owner following a catastrophic windstorm loss in Miami-
Dade County. The policy contains a Coinsurance clause of
80%, a Limit of Liability of $400,000, and the
Replacement Cost Value (RCV) of the structure at the time
of loss is determined to be $1,000,000. If the structural
damage from the windstorm totals a partial loss of
$200,000, how much will the insurer pay under the
policy, discounting any deductibles?
A) $200,000
B) $160,000
C) $100,000
D) $80,000
Correct answer C) $100,000
Rationale: Under the Coinsurance formula, the insurer
pays a ratio of the loss based on (Insurance Carried /
Insurance Required) x Loss. The required amount of
insurance was 80% of $1,000,000, which equals
$800,000. Because the insured only carried $400,000,
they are underinsured by half ($400,000 / $800,000 =
0.50). Therefore, the insurer pays 50% of the $200,000
partial loss, which is $100,000. The insured absorbs the
remaining balance as a coinsurance penalty.
,2. During the evaluation of a complex commercial property
water damage claim in Florida, a public adjuster reviews
the policy's "Duties after Loss" section. According to
Florida statutory updates, what is the maximum time
frame within which a policyholder or their public adjuster
must submit a formal initial, supplemental, or reopened
property insurance claim to the insurer following the date
of the loss?
A) Within 3 years from the date of loss
B) Within 1 year from the date of loss
C) Within 2 years from the date of loss
D) Within 180 days from the date of loss
Correct answer B) Within 1 year from the date
of loss
Rationale: Florida statutory changes state that a
property insurance claim, supplemental claim, or
reopened claim is barred unless notice is given to the
insurer in accordance with the terms of the policy within
1 year after the date of loss. This strict standard ensures
swift notification and prevents delayed claims
investigations.
3. A Florida 3-20 licensed public adjuster is preparing a
contract to represent a residential homeowner on a roof
replacement claim resulting from a declared state of
emergency. According to the Florida Insurance Code, what
is the strict statutory cap on the fee a public adjuster can
charge the policyholder for claims arising from a
catastrophic event or declared state of emergency?
A) 20% of the total claim recovery amount
B) 10% of the total claim recovery amount for the first year
after the declaration
C) 5% of the total claim recovery amount
D) 25% of the total claim recovery amount
Correct answer B) 10% of the total claim
, recovery amount for the first year after the
declaration
Rationale: Under Florida law, a public adjuster’s fee is
capped at 10% of the claim payment for any claim made
based on a catastrophic event or event that precipitates a
declared state of emergency by the Governor, for up to 1
year after the declaration. For non-catastrophic claims,
the fee is statutorily capped at 20%. [1, 2, 3, 4]
4. An insured's dwelling in Tampa is completely destroyed by
a fire. The property is covered under a standard
homeowners policy with a dwelling coverage (Coverage A)
limit of $350,000. The insurer adjusts the loss and argues
that the actual cash value of the structure was only
$280,000 at the time of the fire. Under Florida's Valued
Policy Law (VPL), what amount is the insurer legally
required to pay for the total loss of the structure?
A) $280,000, representing the Actual Cash Value
B) $350,000, representing the full stated policy limit
C) $315,000, representing the split average value
D) Nothing, until the insured physically rebuilds the exact
structure
Correct answer B) $350,000, representing the
full stated policy limit
Rationale: Florida’s Valued Policy Law (Statute
627.702) dictates that in the event of a total loss of a
building or structure by a covered peril (such as fire), the
insurer's liability under the policy must be the full stated
amount for which the property was insured and specified
in the policy declarations, regardless of the property's
actual cash value at the time of loss.
5. A public adjuster is adjusting a residential lightning
damage claim under an HO-3 policy. The insurer assigns a
company adjuster who verbally requests that the public
adjuster skip the physical inspection of the attic wiring and
, simply sign off on a partial settlement. Which of the
following principles from the Florida Public Adjuster Code
of Ethics applies directly to this situation?
A) The public adjuster may accept the oral agreement to
speed up client compensation
B) The public adjuster must maintain an arms-length
relationship and must never compromise their fiduciary
duty to comprehensively investigate and document the full
scope of the client's loss
C) Ethical codes allow public adjusters to delegate scoping
responsibilities to the carrier's representatives
D) The public adjuster should accept a split fee from the
insurance company's adjuster to settle quickly
Correct answer B) The public adjuster must
maintain an arms-length relationship and must
never compromise their fiduciary duty to
comprehensively investigate and document the
full scope of the client's loss
Rationale: The Florida Public Adjuster Code of Ethics
requires public adjusters to remain loyal strictly to the
insured client. They owe a fiduciary duty to the client to
discover, document, and present the maximum legal
extent of the true physical damage. Shaking hands on an
incomplete scope violates this fundamental ethical and
professional standard.
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Scroll past Question 50 to see our custom target tags and the
exact sub-headings needed to pass this state exam on the very
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6. In Florida, any advertisement by a licensed 3-20 public
adjuster regarding their services or ability to obtain
EXAM ULTIMATE KNOWLEDGE BANK
150 COMPLEX CLAIMS SCENARIOS WITH
DETAILED CORRECT ANSWERS AND
RATIONALES GRADE A+ VERIFIED |
100% PASS GUARANTEE | INSTANT
DOWNLOAD
Florida 3-20 Public Adjuster State Exam: Phase 1
1. A public adjuster is retained by a commercial property
owner following a catastrophic windstorm loss in Miami-
Dade County. The policy contains a Coinsurance clause of
80%, a Limit of Liability of $400,000, and the
Replacement Cost Value (RCV) of the structure at the time
of loss is determined to be $1,000,000. If the structural
damage from the windstorm totals a partial loss of
$200,000, how much will the insurer pay under the
policy, discounting any deductibles?
A) $200,000
B) $160,000
C) $100,000
D) $80,000
Correct answer C) $100,000
Rationale: Under the Coinsurance formula, the insurer
pays a ratio of the loss based on (Insurance Carried /
Insurance Required) x Loss. The required amount of
insurance was 80% of $1,000,000, which equals
$800,000. Because the insured only carried $400,000,
they are underinsured by half ($400,000 / $800,000 =
0.50). Therefore, the insurer pays 50% of the $200,000
partial loss, which is $100,000. The insured absorbs the
remaining balance as a coinsurance penalty.
,2. During the evaluation of a complex commercial property
water damage claim in Florida, a public adjuster reviews
the policy's "Duties after Loss" section. According to
Florida statutory updates, what is the maximum time
frame within which a policyholder or their public adjuster
must submit a formal initial, supplemental, or reopened
property insurance claim to the insurer following the date
of the loss?
A) Within 3 years from the date of loss
B) Within 1 year from the date of loss
C) Within 2 years from the date of loss
D) Within 180 days from the date of loss
Correct answer B) Within 1 year from the date
of loss
Rationale: Florida statutory changes state that a
property insurance claim, supplemental claim, or
reopened claim is barred unless notice is given to the
insurer in accordance with the terms of the policy within
1 year after the date of loss. This strict standard ensures
swift notification and prevents delayed claims
investigations.
3. A Florida 3-20 licensed public adjuster is preparing a
contract to represent a residential homeowner on a roof
replacement claim resulting from a declared state of
emergency. According to the Florida Insurance Code, what
is the strict statutory cap on the fee a public adjuster can
charge the policyholder for claims arising from a
catastrophic event or declared state of emergency?
A) 20% of the total claim recovery amount
B) 10% of the total claim recovery amount for the first year
after the declaration
C) 5% of the total claim recovery amount
D) 25% of the total claim recovery amount
Correct answer B) 10% of the total claim
, recovery amount for the first year after the
declaration
Rationale: Under Florida law, a public adjuster’s fee is
capped at 10% of the claim payment for any claim made
based on a catastrophic event or event that precipitates a
declared state of emergency by the Governor, for up to 1
year after the declaration. For non-catastrophic claims,
the fee is statutorily capped at 20%. [1, 2, 3, 4]
4. An insured's dwelling in Tampa is completely destroyed by
a fire. The property is covered under a standard
homeowners policy with a dwelling coverage (Coverage A)
limit of $350,000. The insurer adjusts the loss and argues
that the actual cash value of the structure was only
$280,000 at the time of the fire. Under Florida's Valued
Policy Law (VPL), what amount is the insurer legally
required to pay for the total loss of the structure?
A) $280,000, representing the Actual Cash Value
B) $350,000, representing the full stated policy limit
C) $315,000, representing the split average value
D) Nothing, until the insured physically rebuilds the exact
structure
Correct answer B) $350,000, representing the
full stated policy limit
Rationale: Florida’s Valued Policy Law (Statute
627.702) dictates that in the event of a total loss of a
building or structure by a covered peril (such as fire), the
insurer's liability under the policy must be the full stated
amount for which the property was insured and specified
in the policy declarations, regardless of the property's
actual cash value at the time of loss.
5. A public adjuster is adjusting a residential lightning
damage claim under an HO-3 policy. The insurer assigns a
company adjuster who verbally requests that the public
adjuster skip the physical inspection of the attic wiring and
, simply sign off on a partial settlement. Which of the
following principles from the Florida Public Adjuster Code
of Ethics applies directly to this situation?
A) The public adjuster may accept the oral agreement to
speed up client compensation
B) The public adjuster must maintain an arms-length
relationship and must never compromise their fiduciary
duty to comprehensively investigate and document the full
scope of the client's loss
C) Ethical codes allow public adjusters to delegate scoping
responsibilities to the carrier's representatives
D) The public adjuster should accept a split fee from the
insurance company's adjuster to settle quickly
Correct answer B) The public adjuster must
maintain an arms-length relationship and must
never compromise their fiduciary duty to
comprehensively investigate and document the
full scope of the client's loss
Rationale: The Florida Public Adjuster Code of Ethics
requires public adjusters to remain loyal strictly to the
insured client. They owe a fiduciary duty to the client to
discover, document, and present the maximum legal
extent of the true physical damage. Shaking hands on an
incomplete scope violates this fundamental ethical and
professional standard.
WANT TO MASTER THE FULL EXAM SYLLABUS?
Scroll past Question 50 to see our custom target tags and the
exact sub-headings needed to pass this state exam on the very
first try!
6. In Florida, any advertisement by a licensed 3-20 public
adjuster regarding their services or ability to obtain
