Page |1 n n
FLORIDA CERTIFIED ADJUSTER LICENSING EX n n n n
AM 2025| BRAND NEW ACTUAL EXAM WITH 100
n n n n n n n
% VERIFIED QUESTIONS AND CORRECT SOLUT
n n n n n
IONS| GUARANTEED VALUE PACK| ACE YOUR G
n n n n n n
RADES.
1. Edward is a member of the Knights of Columbus, a religious group dedic
n n n n n n n n n n n n
ated to voluntary service to the benefit of society. He also recently purcha
n n n n n n n n n n n n
sed a $100,000 life insurance policy from the organization. This was pos
n n n n n n n n n n n
sible because the Knights of Columbus is: - correct answer -
n n n n n n n n n n
a fraternal benefit society
n n n n
2. Jason's auto policy states that the insurer may cancel coverage if a premiu
n n n n n n n n n n n n
m is more than 30 days late. However, Jason is currently more than 30 day
n n n n n n n n n n n n n n
s late, and has been so five times in the last year, and his insurer has done
n n n n n n n n n n n n n n n n n
nothing about it. When Jason gets into an accident and files a claim, which
n n n n n n n n n n n n n n
of the following is most likely to happen? - correct answer -
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The insurer will pay the claim because of the implied waiver they have ma
n n n n n n n n n n n n n n
de by not cancelling Jason's policy the previous times he was late with his
n n n n n n n n n n n n n n
payments
3. Jared hopes to purchase a new insurance policy for his car, but he has a
n n n n n n n n n n n n n n
n extremely poor driving record. The insurance company decides to issu
n n n n n n n n n n
e Jared an insurance policy, but charges him a premium much higher th
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an the average driver. The insurance company is practicing: -
n n n n n n n n n
correct answer - risk reduction
n n n n n
, Page |2 n n
4. Which of the following is NOT a characteristic of insurance contracts? (a
n n n n n n n n n n n
leatory, conditional, unilateral, universal) - correct answer - universal
n n n n n n n n
5. A few weeks ago Christopher's garage was destroyed by an out-of-
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ncontrol motorist. Fortunately, the motorist had sufficient liability insuranc
n n n n n n n n
e to cover the damages. However, the insurer insists that Christopher's
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garage is worth far less than the appraisals he has received from contrac
n n n n n n n n n n n n
tors. Christopher and the insurer have gone back and forth in negotiation
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s for weeks, making little headway. Christopher decides it's time to: -
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ncorrect answer - issue a complaint against the policyholder
n n n n n n n n
6. A reciprocal insurer is: - correct answer -
n n n n n n n
nan unincorporated organization of subscribers that operates through an at
n n n n n n n n n
torney-in-fact to provide insurance benefits for its members. n n n n n n n
7. Bob has been in the construction business a long time and is ready to retir
n n n n n n n n n n n n n n
e. He sells the company to his friend Scott and then lets the insurer know t
n n n n n n n n n n n n n n n
hat any claims against his policy should be paid to Scott from now on. The i
n n n n n n n n n n n n n n n
nsurer informs Bob that they cannot do this due to which condition? -
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correct answer - assignment
n n n n
8. Cindy and her insurer cannot reach an agreement for her property claim, a
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nd have gone back and forth for weeks without coming within $10,000 of e
n n n n n n n n n n n n n
ach other. At this point, since both believe they are offering a fair settleme
n n n n n n n n n n n n n
nt, a third party is needed to help facilitate the negotiation. Both
n n n n n n n n n n n
, Page |3 n n
parties still want to retain their ability to "walk-
n n n n n n n n
away" if they cannot reach an agreement. What is the next best step for Ci
n n n n n n n n n n n n n n
ndy and her insurer? - correct answer - mediation
n n n n n n n n
9. How is the power to bind transferred to an adjuster? - correct answer -
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nit is transferred through a written contract
n n n n n n
10. Which of the following statements best describes a part of the a
n n n n n n n n n n n
ppraisal process? n
A. The claimant and the insurer each select an appraiser, and t
n n n n n n n n n n
hose two select an umpire. n n n n
B. All parties must agree to the final amount in order for it to be bi
n n n n n n n n n n n n n n
nding.
C. A neutral third party, called the appraiser, plays an advisory role t
n n n n n n n n n n n
o help the disputing parties come to a settlement.
n n n n n n n n
D. The opposing parties submit their evidence to the appraiser, w
n n n n n n n n n
ho makes a final and binding decision. - correct answer -
n n n n n n n n n n
A. The claimant and the insurer each select an appraiser, and
n n n n n n n n n n n n
those two select an umpire. n n n n
11. Bob's home was severely damaged by a thunderstorm and he claims it
n n n n n n n n n n n
will cost $74,000 to repair. His insurer has investigated the claim, found t
n n n n n n n n n n n n n
he repairs could be done for $49,000, and has offered Bob this amount of i
n n n n n n n n n n n n n n
ndemnification. Negotiation between Bob and his insurer seems to be faili n n n n n n n n n n
ng. Due to the unpredictability of the result, which of the following options
n n n n n n n n n n n n n
should be avoided by the insurer if possible?
n n n n n n n
, Page |4 n n
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - correct answer - C. Litigation n n n n n n
12. In appraisal, who chooses the umpire?
n n n n n
A. The claimant n
B. The two appraisers n n
C. The insurance company n n
D. The adjuster - correct answer - B. The two appraisers
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13. Adjuster Andy is trying to determine a final settlement amount for
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Stacy's claim. Stacy's house was destroyed in a fire and it will cost
n n n n n n n n n n n n
$185,000 to rebuild it. Stacy's homeowners policy has a limit of
n n n n n n n n n n
$178,000 and a $1,800 deductible. Typically, how much would Adjuster A
n n n n n n n n n n
ndy calculate Stacy's final settlement amount to be? - correct answer -
n n n n n n n n n n n
$178,000 (because the cost of repairs is more than the policy limit, the fina
n n n n n n n n n n n n n
l settlement amount is the full policy limit ($178,000) and the deductible is
n n n n n n n n n n n n n
absorbed into the amount of the loss that exceeds the limit.
n n n n n n n n n n
14. Which of the following statements is NOT true of an insurance a
n n n n n n n n n n n
djuster?
A. An insurance adjuster must always use reasonable judgement f
n n n n n n n n
or both the insurer and the claimant.
n n n n n n
B. An insurance adjuster is an agent.
n n n n n
FLORIDA CERTIFIED ADJUSTER LICENSING EX n n n n
AM 2025| BRAND NEW ACTUAL EXAM WITH 100
n n n n n n n
% VERIFIED QUESTIONS AND CORRECT SOLUT
n n n n n
IONS| GUARANTEED VALUE PACK| ACE YOUR G
n n n n n n
RADES.
1. Edward is a member of the Knights of Columbus, a religious group dedic
n n n n n n n n n n n n
ated to voluntary service to the benefit of society. He also recently purcha
n n n n n n n n n n n n
sed a $100,000 life insurance policy from the organization. This was pos
n n n n n n n n n n n
sible because the Knights of Columbus is: - correct answer -
n n n n n n n n n n
a fraternal benefit society
n n n n
2. Jason's auto policy states that the insurer may cancel coverage if a premiu
n n n n n n n n n n n n
m is more than 30 days late. However, Jason is currently more than 30 day
n n n n n n n n n n n n n n
s late, and has been so five times in the last year, and his insurer has done
n n n n n n n n n n n n n n n n n
nothing about it. When Jason gets into an accident and files a claim, which
n n n n n n n n n n n n n n
of the following is most likely to happen? - correct answer -
n n n n n n n n n n n
The insurer will pay the claim because of the implied waiver they have ma
n n n n n n n n n n n n n n
de by not cancelling Jason's policy the previous times he was late with his
n n n n n n n n n n n n n n
payments
3. Jared hopes to purchase a new insurance policy for his car, but he has a
n n n n n n n n n n n n n n
n extremely poor driving record. The insurance company decides to issu
n n n n n n n n n n
e Jared an insurance policy, but charges him a premium much higher th
n n n n n n n n n n n n
an the average driver. The insurance company is practicing: -
n n n n n n n n n
correct answer - risk reduction
n n n n n
, Page |2 n n
4. Which of the following is NOT a characteristic of insurance contracts? (a
n n n n n n n n n n n
leatory, conditional, unilateral, universal) - correct answer - universal
n n n n n n n n
5. A few weeks ago Christopher's garage was destroyed by an out-of-
n n n n n n n n n n
ncontrol motorist. Fortunately, the motorist had sufficient liability insuranc
n n n n n n n n
e to cover the damages. However, the insurer insists that Christopher's
n n n n n n n n n n n
garage is worth far less than the appraisals he has received from contrac
n n n n n n n n n n n n
tors. Christopher and the insurer have gone back and forth in negotiation
n n n n n n n n n n n
s for weeks, making little headway. Christopher decides it's time to: -
n n n n n n n n n n n
ncorrect answer - issue a complaint against the policyholder
n n n n n n n n
6. A reciprocal insurer is: - correct answer -
n n n n n n n
nan unincorporated organization of subscribers that operates through an at
n n n n n n n n n
torney-in-fact to provide insurance benefits for its members. n n n n n n n
7. Bob has been in the construction business a long time and is ready to retir
n n n n n n n n n n n n n n
e. He sells the company to his friend Scott and then lets the insurer know t
n n n n n n n n n n n n n n n
hat any claims against his policy should be paid to Scott from now on. The i
n n n n n n n n n n n n n n n
nsurer informs Bob that they cannot do this due to which condition? -
n n n n n n n n n n n n
correct answer - assignment
n n n n
8. Cindy and her insurer cannot reach an agreement for her property claim, a
n n n n n n n n n n n n
nd have gone back and forth for weeks without coming within $10,000 of e
n n n n n n n n n n n n n
ach other. At this point, since both believe they are offering a fair settleme
n n n n n n n n n n n n n
nt, a third party is needed to help facilitate the negotiation. Both
n n n n n n n n n n n
, Page |3 n n
parties still want to retain their ability to "walk-
n n n n n n n n
away" if they cannot reach an agreement. What is the next best step for Ci
n n n n n n n n n n n n n n
ndy and her insurer? - correct answer - mediation
n n n n n n n n
9. How is the power to bind transferred to an adjuster? - correct answer -
n n n n n n n n n n n n n
nit is transferred through a written contract
n n n n n n
10. Which of the following statements best describes a part of the a
n n n n n n n n n n n
ppraisal process? n
A. The claimant and the insurer each select an appraiser, and t
n n n n n n n n n n
hose two select an umpire. n n n n
B. All parties must agree to the final amount in order for it to be bi
n n n n n n n n n n n n n n
nding.
C. A neutral third party, called the appraiser, plays an advisory role t
n n n n n n n n n n n
o help the disputing parties come to a settlement.
n n n n n n n n
D. The opposing parties submit their evidence to the appraiser, w
n n n n n n n n n
ho makes a final and binding decision. - correct answer -
n n n n n n n n n n
A. The claimant and the insurer each select an appraiser, and
n n n n n n n n n n n n
those two select an umpire. n n n n
11. Bob's home was severely damaged by a thunderstorm and he claims it
n n n n n n n n n n n
will cost $74,000 to repair. His insurer has investigated the claim, found t
n n n n n n n n n n n n n
he repairs could be done for $49,000, and has offered Bob this amount of i
n n n n n n n n n n n n n n
ndemnification. Negotiation between Bob and his insurer seems to be faili n n n n n n n n n n
ng. Due to the unpredictability of the result, which of the following options
n n n n n n n n n n n n n
should be avoided by the insurer if possible?
n n n n n n n
, Page |4 n n
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - correct answer - C. Litigation n n n n n n
12. In appraisal, who chooses the umpire?
n n n n n
A. The claimant n
B. The two appraisers n n
C. The insurance company n n
D. The adjuster - correct answer - B. The two appraisers
n n n n n n n n n
13. Adjuster Andy is trying to determine a final settlement amount for
n n n n n n n n n n n
Stacy's claim. Stacy's house was destroyed in a fire and it will cost
n n n n n n n n n n n n
$185,000 to rebuild it. Stacy's homeowners policy has a limit of
n n n n n n n n n n
$178,000 and a $1,800 deductible. Typically, how much would Adjuster A
n n n n n n n n n n
ndy calculate Stacy's final settlement amount to be? - correct answer -
n n n n n n n n n n n
$178,000 (because the cost of repairs is more than the policy limit, the fina
n n n n n n n n n n n n n
l settlement amount is the full policy limit ($178,000) and the deductible is
n n n n n n n n n n n n n
absorbed into the amount of the loss that exceeds the limit.
n n n n n n n n n n
14. Which of the following statements is NOT true of an insurance a
n n n n n n n n n n n
djuster?
A. An insurance adjuster must always use reasonable judgement f
n n n n n n n n
or both the insurer and the claimant.
n n n n n n
B. An insurance adjuster is an agent.
n n n n n
