Florida Public Adjuster State Test
Florida Public Adjuster State Test: 80
Multiple-Choice Questions
Covering Policy Interpretation, Ethics, Claims Process, State Laws, and
Licensing
June 16, 2025
Instructions
This test contains 80 multiple-choice questions. Each question has four answer choices (A,
B, C, D). Select the correct answer and review the rationale provided for each question.
The test is designed to prepare candidates for the Florida 3-20 Public Adjuster License
Exam, focusing on key topics outlined by the Florida Department of Financial Services.
Questions
1. What is the primary role of a public adjuster in Florida?
A. Represent the insurance company in claim settlements
B. Assist policyholders in negotiating fair claim settlements
C. Conduct inspections on behalf of contractors
D. Determine premium rates for insurance policies
Answer: B
Rationale: A public adjuster in Florida represents policyholders, not insurers, in
preparing, filing, and negotiating insurance claims to ensure fair settlements, as
defined in s. 626.854, Florida Statutes.
2. Under Florida law, what is the maximum percentage fee a public adjuster can
charge for a residential claim not related to a declared state of emergency?
A. 10%
B. 15%
C. 20%
D. 25%
Answer: C
Rationale: Per s. 626.854(10)(a), Florida Statutes, a public adjuster’s fee for a
residential claim is capped at 20% of the insurance recovery, unless the claim arises
from a declared state of emergency, where the cap may be lower (e.g., 10% for the
first year post-emergency).
3. Which of the following is a prohibited practice under the Florida Unfair Insurance
Trade Practices Act?
1
, Florida Public Adjuster State Test
A. Keeping accurate records of claims
B. Denying claims without reasonable investigation
C. Explaining claim denials in writing
D. Maintaining complaint-handling procedures
Answer: B
Rationale: The Florida Unfair Insurance Trade Practices Act (s. 626.9541, F.S.)
prohibits denying claims without reasonable investigation. The other options are
required or permissible practices to ensure fair treatment of policyholders.
4. How long must a public adjuster retain records of a claimant’s loss estimate?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: C
Rationale: Per s. 626.854(14), Florida Statutes, public adjusters must retain
written estimates and other claim-related records for at least 5 years after the
claim is settled or closed.
5. A homeowner’s policy excludes damage caused by wear and tear. A public adjuster
is reviewing a claim for roof damage due to a storm. How should they proceed?
A. Deny the claim due to the exclusion
B. Investigate whether the storm was the proximate cause of the damage
C. Advise the homeowner to file a lawsuit
D. Request the insurer to waive the exclusion
Answer: B
Rationale: The public adjuster must investigate to determine if a covered peril
(the storm) was the proximate cause of the damage, as exclusions like wear and
tear do not apply if a covered peril directly causes the loss.
6. What is the continuing education (CE) requirement for a Florida public adjuster
to maintain their license?
A. 12 hours annually
B. 24 hours biennially
C. 20 hours annually
D. 30 hours biennially
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, Florida Public Adjuster State Test
Answer: B
Rationale: Per s. 626.2815, Florida Statutes, public adjusters must complete 24
hours of CE biennially, including a 4-hour Florida Law and Ethics Update course
(CE 5-320).
7. A public adjuster is offered a referral fee by a contractor for sending clients. Is this
permissible under Florida law?
A. Yes, if disclosed to the client
B. Yes, if the fee is under $500
C. No, it is a prohibited practice
D. No, unless approved by the insurer
Answer: C
Rationale: Accepting referral fees from contractors creates a conflict of interest
and is prohibited under s. 626.854(8), Florida Statutes, to ensure the public adjuster
acts solely in the policyholder’s interest.
8. What is the statute of limitations for filing a windstorm damage claim in Florida?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: C
Rationale: Per s. 627.70132, Florida Statutes, the statute of limitations for filing
a claim for windstorm damage is 3 years from the date of loss.
9. Which of the following is NOT a fiduciary responsibility of a public adjuster?
A. Acting in the best interest of the policyholder
B. Maintaining confidentiality of client information
C. Providing legal advice on claim disputes
D. Disclosing any conflicts of interest
Answer: C
Rationale: Public adjusters are not licensed to provide legal advice, as this falls
under the practice of law, which is reserved for attorneys. The other options are
fiduciary duties owed to the policyholder.
10. How long does a client have to cancel a public adjuster’s contract in Florida?
A. 1 business day
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Florida Public Adjuster State Test: 80
Multiple-Choice Questions
Covering Policy Interpretation, Ethics, Claims Process, State Laws, and
Licensing
June 16, 2025
Instructions
This test contains 80 multiple-choice questions. Each question has four answer choices (A,
B, C, D). Select the correct answer and review the rationale provided for each question.
The test is designed to prepare candidates for the Florida 3-20 Public Adjuster License
Exam, focusing on key topics outlined by the Florida Department of Financial Services.
Questions
1. What is the primary role of a public adjuster in Florida?
A. Represent the insurance company in claim settlements
B. Assist policyholders in negotiating fair claim settlements
C. Conduct inspections on behalf of contractors
D. Determine premium rates for insurance policies
Answer: B
Rationale: A public adjuster in Florida represents policyholders, not insurers, in
preparing, filing, and negotiating insurance claims to ensure fair settlements, as
defined in s. 626.854, Florida Statutes.
2. Under Florida law, what is the maximum percentage fee a public adjuster can
charge for a residential claim not related to a declared state of emergency?
A. 10%
B. 15%
C. 20%
D. 25%
Answer: C
Rationale: Per s. 626.854(10)(a), Florida Statutes, a public adjuster’s fee for a
residential claim is capped at 20% of the insurance recovery, unless the claim arises
from a declared state of emergency, where the cap may be lower (e.g., 10% for the
first year post-emergency).
3. Which of the following is a prohibited practice under the Florida Unfair Insurance
Trade Practices Act?
1
, Florida Public Adjuster State Test
A. Keeping accurate records of claims
B. Denying claims without reasonable investigation
C. Explaining claim denials in writing
D. Maintaining complaint-handling procedures
Answer: B
Rationale: The Florida Unfair Insurance Trade Practices Act (s. 626.9541, F.S.)
prohibits denying claims without reasonable investigation. The other options are
required or permissible practices to ensure fair treatment of policyholders.
4. How long must a public adjuster retain records of a claimant’s loss estimate?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: C
Rationale: Per s. 626.854(14), Florida Statutes, public adjusters must retain
written estimates and other claim-related records for at least 5 years after the
claim is settled or closed.
5. A homeowner’s policy excludes damage caused by wear and tear. A public adjuster
is reviewing a claim for roof damage due to a storm. How should they proceed?
A. Deny the claim due to the exclusion
B. Investigate whether the storm was the proximate cause of the damage
C. Advise the homeowner to file a lawsuit
D. Request the insurer to waive the exclusion
Answer: B
Rationale: The public adjuster must investigate to determine if a covered peril
(the storm) was the proximate cause of the damage, as exclusions like wear and
tear do not apply if a covered peril directly causes the loss.
6. What is the continuing education (CE) requirement for a Florida public adjuster
to maintain their license?
A. 12 hours annually
B. 24 hours biennially
C. 20 hours annually
D. 30 hours biennially
2
, Florida Public Adjuster State Test
Answer: B
Rationale: Per s. 626.2815, Florida Statutes, public adjusters must complete 24
hours of CE biennially, including a 4-hour Florida Law and Ethics Update course
(CE 5-320).
7. A public adjuster is offered a referral fee by a contractor for sending clients. Is this
permissible under Florida law?
A. Yes, if disclosed to the client
B. Yes, if the fee is under $500
C. No, it is a prohibited practice
D. No, unless approved by the insurer
Answer: C
Rationale: Accepting referral fees from contractors creates a conflict of interest
and is prohibited under s. 626.854(8), Florida Statutes, to ensure the public adjuster
acts solely in the policyholder’s interest.
8. What is the statute of limitations for filing a windstorm damage claim in Florida?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: C
Rationale: Per s. 627.70132, Florida Statutes, the statute of limitations for filing
a claim for windstorm damage is 3 years from the date of loss.
9. Which of the following is NOT a fiduciary responsibility of a public adjuster?
A. Acting in the best interest of the policyholder
B. Maintaining confidentiality of client information
C. Providing legal advice on claim disputes
D. Disclosing any conflicts of interest
Answer: C
Rationale: Public adjusters are not licensed to provide legal advice, as this falls
under the practice of law, which is reserved for attorneys. The other options are
fiduciary duties owed to the policyholder.
10. How long does a client have to cancel a public adjuster’s contract in Florida?
A. 1 business day
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