1
FLORIDA ADJUSTER LICENSING EXAM (NEWEST
EXAM 2025) | ALL QUESTIONS AND CORRECT
ANSWERS | GRADED A+ | LATEST EXAM | VERIFIED
ANSWERS
When Sally applies for an auto policy, her agent issues her a ________ so that she
can benefit from insurance protection while he underwrites the policy. -
..(ANSWER)...Binder
When an insurer buys insurance to reduce its exposure to loss, this is called -
..(ANSWER)...Reinsurance
Reinsurance - ..(ANSWER)...insurance for insurers; it helps reduce their exposure
to losses
Emma is found guilty of arson causing 175,000 in damages to her home, which
still has 155,000 left on her mortgage at the time of the fire. Under her mortgage
clause, Emma's mortgage lender can recoup: - ..(ANSWER)...155,000 of insurable
interests - the amount left outstanding on the loan
An "occurrence" is defined as: - ..(ANSWER)...an unexpected event that causes
loss.
Replacement Cost Value: - ..(ANSWER)...Under replacement cost valuation,
insurers may safeguard the principle of indemnity by requiring policy holders to
replace insured items before making full reparations
, 2
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly
traded company, and Cindy can participate in the election of the board, receiving
dividends if the company does well. Sine Nomine Insurance could be best
described as a: - ..(ANSWER)...Mutual Insurance Company
Loss of Money invested in the stock market is a - ..(ANSWER)...speculative risk
When taking recorded witness statements, the adjuster should -
..(ANSWER)...Remain Objective
Coinsurance Policy - ..(ANSWER)...requires you to have a minimum of 80%
minimum, if you do not comply there is a penalty
Coinsurance Penalty Formula - ..(ANSWER)...dividing the amount of coverage one
should have by how much they do have.
EX: they should have 80% (96,000) , they do have (40,000). 40,000/96,000=
41.67%
then apply that to the perceived cost of indemnity before the penalty.
12,000 x 41.67% = 5,000
They will receive 5,000 dollars
Standard Fire Policy Pays - ..(ANSWER)...Actual Cash Value
, 3
Stan built a porch for his home three years ago at a cost of $10,000. The value of
the porch has depreciated by $6,000, and it would cost $12,000 to replace it
today. After Stan's porch burnt down during a BBQ today, how much would a
Standard Fire Policy indemnify Stan for his porch? - ..(ANSWER)...12,000 - 6,000 =
6,000
he will receive 6,000 because standard fire pays actual cash value
John moved out of his home 3 months ago and put it up for sale. While waiting
for it to sell, the pipes burst and damage the floors due to freezing.
This is not covered - ..(ANSWER)...freezing is a covered peril but is excluded if the
building is vacant and the insured has not taken responsible care to maintain heat
or shut off the water supply
DP-2 Broad Form covers what under the peril of theft? - ..(ANSWER)...Broken
windows caused by the burglar breaking in
Which of the following is covered under a DP-3
a. earthquake
b. flood
c. water backup from sewers
4. Power failure on premises - ..(ANSWER)...Power failure on-premises
, 4
In a dwelling policies, coverage D pays for - ..(ANSWER)...Lost Rental Income
If a Florida HO policy has been in effect for fewer than 90 days For nonpayment-
related cancelation the insurer must notify the policyholder at least: -
..(ANSWER)...10 days before cancelling
If a Florida HO policy has been in effect for fewer than 90 days for any other
approved reason the policy holder must be notified at least - ..(ANSWER)...20 days
before cancelling
The coverage for damage to personal property off-premises is limited to 10% of
coverage c's limit in a DP-2 policy. - ..(ANSWER)...coverage c is 25,000 x 10% =
2,500
2,500 would be off-premise coverage limit
HO-5 - ..(ANSWER)...Best coverage policy
A processing and servicing company would qualify for a BOP only if they have less
than - ..(ANSWER)...3 million in annual rev
A "Single Occurrence" on the earthquake and volcanic eruptions for involves any
and all eruptions and/or earthquakes that take place with in a: -
..(ANSWER)...Single 168-hour Policy -7 days
FLORIDA ADJUSTER LICENSING EXAM (NEWEST
EXAM 2025) | ALL QUESTIONS AND CORRECT
ANSWERS | GRADED A+ | LATEST EXAM | VERIFIED
ANSWERS
When Sally applies for an auto policy, her agent issues her a ________ so that she
can benefit from insurance protection while he underwrites the policy. -
..(ANSWER)...Binder
When an insurer buys insurance to reduce its exposure to loss, this is called -
..(ANSWER)...Reinsurance
Reinsurance - ..(ANSWER)...insurance for insurers; it helps reduce their exposure
to losses
Emma is found guilty of arson causing 175,000 in damages to her home, which
still has 155,000 left on her mortgage at the time of the fire. Under her mortgage
clause, Emma's mortgage lender can recoup: - ..(ANSWER)...155,000 of insurable
interests - the amount left outstanding on the loan
An "occurrence" is defined as: - ..(ANSWER)...an unexpected event that causes
loss.
Replacement Cost Value: - ..(ANSWER)...Under replacement cost valuation,
insurers may safeguard the principle of indemnity by requiring policy holders to
replace insured items before making full reparations
, 2
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly
traded company, and Cindy can participate in the election of the board, receiving
dividends if the company does well. Sine Nomine Insurance could be best
described as a: - ..(ANSWER)...Mutual Insurance Company
Loss of Money invested in the stock market is a - ..(ANSWER)...speculative risk
When taking recorded witness statements, the adjuster should -
..(ANSWER)...Remain Objective
Coinsurance Policy - ..(ANSWER)...requires you to have a minimum of 80%
minimum, if you do not comply there is a penalty
Coinsurance Penalty Formula - ..(ANSWER)...dividing the amount of coverage one
should have by how much they do have.
EX: they should have 80% (96,000) , they do have (40,000). 40,000/96,000=
41.67%
then apply that to the perceived cost of indemnity before the penalty.
12,000 x 41.67% = 5,000
They will receive 5,000 dollars
Standard Fire Policy Pays - ..(ANSWER)...Actual Cash Value
, 3
Stan built a porch for his home three years ago at a cost of $10,000. The value of
the porch has depreciated by $6,000, and it would cost $12,000 to replace it
today. After Stan's porch burnt down during a BBQ today, how much would a
Standard Fire Policy indemnify Stan for his porch? - ..(ANSWER)...12,000 - 6,000 =
6,000
he will receive 6,000 because standard fire pays actual cash value
John moved out of his home 3 months ago and put it up for sale. While waiting
for it to sell, the pipes burst and damage the floors due to freezing.
This is not covered - ..(ANSWER)...freezing is a covered peril but is excluded if the
building is vacant and the insured has not taken responsible care to maintain heat
or shut off the water supply
DP-2 Broad Form covers what under the peril of theft? - ..(ANSWER)...Broken
windows caused by the burglar breaking in
Which of the following is covered under a DP-3
a. earthquake
b. flood
c. water backup from sewers
4. Power failure on premises - ..(ANSWER)...Power failure on-premises
, 4
In a dwelling policies, coverage D pays for - ..(ANSWER)...Lost Rental Income
If a Florida HO policy has been in effect for fewer than 90 days For nonpayment-
related cancelation the insurer must notify the policyholder at least: -
..(ANSWER)...10 days before cancelling
If a Florida HO policy has been in effect for fewer than 90 days for any other
approved reason the policy holder must be notified at least - ..(ANSWER)...20 days
before cancelling
The coverage for damage to personal property off-premises is limited to 10% of
coverage c's limit in a DP-2 policy. - ..(ANSWER)...coverage c is 25,000 x 10% =
2,500
2,500 would be off-premise coverage limit
HO-5 - ..(ANSWER)...Best coverage policy
A processing and servicing company would qualify for a BOP only if they have less
than - ..(ANSWER)...3 million in annual rev
A "Single Occurrence" on the earthquake and volcanic eruptions for involves any
and all eruptions and/or earthquakes that take place with in a: -
..(ANSWER)...Single 168-hour Policy -7 days
