FLORIDA 6-20 ALL LINES ADJUSTER PRACTICE
CERTIFICATION FINAL EXAM |2026 NEWEST
UPDATED QUESTIONS AND CORRECT ANSWERS
WITH CERTIOFIED RATIONALES| STUDY GUIDE
CERTIFIED EXAM
1. Which of the following best describes the principle of indemnity?
A. The insured is entitled to a profit if a loss occurs under a covered
peril.
B. The insured should be restored to the approximate financial
condition occupied prior to the loss.
C. The insurer is required to pay the full-face value of the policy
regardless of the loss amount.
D. The insured and insurer must share the cost of every claim equally.
B. The insured should be restored to the approximate financial
condition occupied prior to the loss.
Rationale: The principle of indemnity aims to compensate the insured
for their actual loss, preventing them from gaining financially from an
insurance claim.
2. An adjuster is a fiduciary agent with a responsibility of loyalty to
the interest of:
,A. The insurer only
B. The insured only
C. The insured and insurer
D. The general public
C. The insured and insurer
Rationale: Adjusters act as fiduciaries and must act in good faith and
loyalty toward both the insurer and the insured when handling claims.
3. Under Florida law, how many days' notice must an insurer provide
for the cancellation of a homeowners policy for non-payment of
premium?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
A. 10 days
Rationale: Florida law generally requires written notice before
cancellation of a binder, typically allowing a short notice period.
4. What does the "Liberalization Clause" do in an insurance policy?
A. It allows the insurer to cancel the policy at any time without notice.
B. It automatically applies broadened coverage to existing policies if the
insurer introduces changes without an extra premium.
,C. It permits the insured to choose any repair contractor they wish.
D. It waives the deductible for claims over $10,000.
B. It automatically applies broadened coverage to existing policies if
the insurer introduces changes without an extra premium.
Rationale: Liberalization ensures that if an insurer improves coverage
forms for new policies, existing policyholders benefit from those
improvements immediately without additional cost.
5. Under the Florida No-Fault Law, what is the maximum limit for
Personal Injury Protection (PIP) benefits?
A. $5,000
B. $10,000
C. $25,000
D. $50,000
B. $10,000**
***Rationale: Florida's No-Fault Law requires Personal Injury
Protection (PIP) coverage with a minimum limit of $10,000 per person
for medical expenses and lost wages.*
6. An adjuster receives confidential financial records while
investigating a commercial fire loss. Under Florida ethical standards,
the adjuster should:
A. Share them with another adjuster for educational purposes.
, B. Maintain confidentiality except where disclosure is authorized or
legally required.
C. Provide copies to competing insurers.
D. Release the records upon request by any interested party.
B. Maintain confidentiality except where disclosure is authorized or
legally required.
Rationale: Florida adjusters have a duty to protect confidential
information and disclose it only when legally authorized or necessary
to perform professional responsibilities.
7. Which of the following is not a claim settlement option?
A. Repairing property
B. Replacing with like kind and quality
C. Replacing with new
D. Forcing the insured to sue by offering less than the claim is worth
D. Forcing the insured to sue by offering less than the claim is worth
Rationale: Forcing the insured to sue by offering less than the claim is
worth is an unfair claims settlement practice and not a legitimate
settlement option.
8. The giving up of a known right is called:
A. Estoppel
B. Violation of policy conditions
CERTIFICATION FINAL EXAM |2026 NEWEST
UPDATED QUESTIONS AND CORRECT ANSWERS
WITH CERTIOFIED RATIONALES| STUDY GUIDE
CERTIFIED EXAM
1. Which of the following best describes the principle of indemnity?
A. The insured is entitled to a profit if a loss occurs under a covered
peril.
B. The insured should be restored to the approximate financial
condition occupied prior to the loss.
C. The insurer is required to pay the full-face value of the policy
regardless of the loss amount.
D. The insured and insurer must share the cost of every claim equally.
B. The insured should be restored to the approximate financial
condition occupied prior to the loss.
Rationale: The principle of indemnity aims to compensate the insured
for their actual loss, preventing them from gaining financially from an
insurance claim.
2. An adjuster is a fiduciary agent with a responsibility of loyalty to
the interest of:
,A. The insurer only
B. The insured only
C. The insured and insurer
D. The general public
C. The insured and insurer
Rationale: Adjusters act as fiduciaries and must act in good faith and
loyalty toward both the insurer and the insured when handling claims.
3. Under Florida law, how many days' notice must an insurer provide
for the cancellation of a homeowners policy for non-payment of
premium?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
A. 10 days
Rationale: Florida law generally requires written notice before
cancellation of a binder, typically allowing a short notice period.
4. What does the "Liberalization Clause" do in an insurance policy?
A. It allows the insurer to cancel the policy at any time without notice.
B. It automatically applies broadened coverage to existing policies if the
insurer introduces changes without an extra premium.
,C. It permits the insured to choose any repair contractor they wish.
D. It waives the deductible for claims over $10,000.
B. It automatically applies broadened coverage to existing policies if
the insurer introduces changes without an extra premium.
Rationale: Liberalization ensures that if an insurer improves coverage
forms for new policies, existing policyholders benefit from those
improvements immediately without additional cost.
5. Under the Florida No-Fault Law, what is the maximum limit for
Personal Injury Protection (PIP) benefits?
A. $5,000
B. $10,000
C. $25,000
D. $50,000
B. $10,000**
***Rationale: Florida's No-Fault Law requires Personal Injury
Protection (PIP) coverage with a minimum limit of $10,000 per person
for medical expenses and lost wages.*
6. An adjuster receives confidential financial records while
investigating a commercial fire loss. Under Florida ethical standards,
the adjuster should:
A. Share them with another adjuster for educational purposes.
, B. Maintain confidentiality except where disclosure is authorized or
legally required.
C. Provide copies to competing insurers.
D. Release the records upon request by any interested party.
B. Maintain confidentiality except where disclosure is authorized or
legally required.
Rationale: Florida adjusters have a duty to protect confidential
information and disclose it only when legally authorized or necessary
to perform professional responsibilities.
7. Which of the following is not a claim settlement option?
A. Repairing property
B. Replacing with like kind and quality
C. Replacing with new
D. Forcing the insured to sue by offering less than the claim is worth
D. Forcing the insured to sue by offering less than the claim is worth
Rationale: Forcing the insured to sue by offering less than the claim is
worth is an unfair claims settlement practice and not a legitimate
settlement option.
8. The giving up of a known right is called:
A. Estoppel
B. Violation of policy conditions
