FLORIDA ALL LINES ADJUSTER LICENSE EXAM
|ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were
listed as additional interests on his homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests
CORRECT ANSWER
D. All listed interests
Remember that the insurer is not responsible to know the degrees of interest. In the
event of a loss, one payment is made by the insurer and it is up to the additional
interests on working out their share.
Question 2
Insurance applies separately to each insured as if other insureds did not exist. This is
defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the above
CORRECT ANSWER
A. Severability
1
,Question 3
Property insurance policies usually contain a(n) __________ clause, stating the insured
cannot dump damaged property on the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above
CORRECT ANSWER
B. Abandonment
Question 4
A(n) __________ is one wherein economic loss would be suffered from an adverse
happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest
CORRECT ANSWER
D. Insurable Interest
Question 5
States that if the insurer adopts a revision which would broaden coverage without
additional premium within some period of time prior to the policy period or during the
policy period, the insured receives the benefit of such broadened coverage.
2
,A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization
CORRECT ANSWER
D. Liberalization
The time frame is typically 60 days.
Question 6
The __________ states that when there is an unbroken connection between an occurrence
and damage that grows out of the occurrence, then the resultant damage is all a part of
the occurrence.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance
CORRECT ANSWER
A. Doctrine of Proximate Cause
For example, if a property insurance policy covers the peril of fire but further damage is
caused by smoke, water used to extinguish, and the process of moving property away -
fire is considered to be the *proximate cause* of all of the damage.
Question 7
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
3
, D. None of the Above
CORRECT ANSWER
A. Actual Cash Value
Question 8
A policy condition, either based on information in the insured's application or inserted by
the insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above
CORRECT ANSWER
A. Warranty
Question 9
The following are basic characteristics of a property or liability insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion
CORRECT ANSWER
C. Loss of Settlement Contract
Question 10
4
|ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were
listed as additional interests on his homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests
CORRECT ANSWER
D. All listed interests
Remember that the insurer is not responsible to know the degrees of interest. In the
event of a loss, one payment is made by the insurer and it is up to the additional
interests on working out their share.
Question 2
Insurance applies separately to each insured as if other insureds did not exist. This is
defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the above
CORRECT ANSWER
A. Severability
1
,Question 3
Property insurance policies usually contain a(n) __________ clause, stating the insured
cannot dump damaged property on the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above
CORRECT ANSWER
B. Abandonment
Question 4
A(n) __________ is one wherein economic loss would be suffered from an adverse
happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest
CORRECT ANSWER
D. Insurable Interest
Question 5
States that if the insurer adopts a revision which would broaden coverage without
additional premium within some period of time prior to the policy period or during the
policy period, the insured receives the benefit of such broadened coverage.
2
,A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization
CORRECT ANSWER
D. Liberalization
The time frame is typically 60 days.
Question 6
The __________ states that when there is an unbroken connection between an occurrence
and damage that grows out of the occurrence, then the resultant damage is all a part of
the occurrence.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance
CORRECT ANSWER
A. Doctrine of Proximate Cause
For example, if a property insurance policy covers the peril of fire but further damage is
caused by smoke, water used to extinguish, and the process of moving property away -
fire is considered to be the *proximate cause* of all of the damage.
Question 7
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
3
, D. None of the Above
CORRECT ANSWER
A. Actual Cash Value
Question 8
A policy condition, either based on information in the insured's application or inserted by
the insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above
CORRECT ANSWER
A. Warranty
Question 9
The following are basic characteristics of a property or liability insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion
CORRECT ANSWER
C. Loss of Settlement Contract
Question 10
4
