Florida 3-20 Public Adjusters State Exam (Set 1)| 140 QUESTIONS| 11 PAGES
Course
Claims Adjuster
Question 1:
What is the primary duty of a public adjuster under Florida law?
A. Represent insurance companies
B. Set premium rates for policyholders
C. Represent policyholders in negotiating insurance claims
D. Appraise property value for tax purposes
✅ Answer: C. Represent policyholders in negotiating insurance claims
Rationale: A public adjuster is licensed to work on behalf of the insured, not the insurer,
and helps negotiate and settle claims with insurance companies.
Question 2:
How long must a licensed public adjuster retain client records and claim documents
in Florida?
A. 1 year
B. 3 years
C. 5 years
D. 10 years
✅ Answer: C. 5 years
Rationale: According to Florida Statute 626.8695, all records related to public adjusting
services must be retained for 5 years after the claim is resolved.
Question 3:
When may a public adjuster legally initiate contact with a policyholder after a state
of emergency has been declared?
A. Immediately after the event
B. Within 24 hours
C. After 48 hours
D. After 72 hours
✅ Answer: D. After 72 hours
Rationale: Florida law (F.S. 626.854(6)) prohibits public adjusters from initiating
contact with a potential client within the first 72 hours following a declared state of
emergency.
Question 4:
What must a public adjuster include in a contract with a policyholder?
A. The insurer’s claims adjuster’s name
B. The replacement cost of the loss
, C. Compensation method and cancellation terms
D. Appraisal panel details
✅ Answer: C. Compensation method and cancellation terms
Rationale: Per Florida Statute 626.8796, the written contract must clearly include the
adjuster's fee structure and the right to cancel within a specified time.
Question 5:
What is the maximum fee a public adjuster may charge for a residential claim not
tied to a declared emergency?
A. 25%
B. 20%
C. 10%
D. 15%
✅ Answer: B. 20%
Rationale: The Florida Administrative Code sets a cap of 20% on fees for non-
emergency residential claims to protect consumers from excessive charges.
Question 6:
What disciplinary action can be taken if a public adjuster misrepresents an
insurance policy's coverage?
A. None, if the client agrees
B. License suspension or revocation
C. Fine only
D. Warning letter
✅ Answer: B. License suspension or revocation
Rationale: Misrepresentation is considered a fraudulent and unethical act, and the
Florida Department of Financial Services can impose serious penalties, including license
suspension or revocation.
Question 7:
What is the term for the type of policy that reimburses the insured for the cost to
replace an item with a new one?
A. Actual Cash Value (ACV)
B. Stated Value
C. Replacement Cost
D. Agreed Value
✅ Answer: C. Replacement Cost
Rationale: Replacement Cost coverage pays to replace damaged property with a new
item of similar kind and quality, without deducting for depreciation.
Question 8:
, Which department regulates and licenses public adjusters in Florida?
A. Department of Revenue
B. Florida Office of Insurance Regulation
C. Florida Department of Financial Services (DFS)
D. Department of Business and Professional Regulation
✅ Answer: C. Florida Department of Financial Services (DFS)
Rationale: The DFS is the agency responsible for licensing, regulating, and
disciplining insurance professionals, including public adjusters, in Florida.
Question 9:
Which of the following is considered a first-party property insurance claim?
A. A guest sues a homeowner for injuries
B. A business sues another business for negligence
C. A homeowner files a wind damage claim with their insurer
D. An insurer sues a contractor for faulty repair
✅ Answer: C. A homeowner files a wind damage claim with their insurer
Rationale: A first-party claim involves a claim filed by the insured directly with their
own insurer, typically for damage to their own property.
Question 10:
How often must Florida public adjusters complete continuing education (CE)
requirements?
A. Annually
B. Every 2 years
C. Every 3 years
D. Every 5 years
✅ Answer: B. Every 2 years
Rationale: Florida law mandates that public adjusters complete 24 hours of continuing
education every 2 years, including ethics and adjuster-specific courses.
Question 11:
What is the cancellation period granted to a policyholder after signing a public
adjuster contract in Florida?
A. 24 hours
B. 48 hours
C. 3 business days
D. 5 calendar days
✅ Answer: C. 3 business days
Rationale: Florida law (F.S. 626.854) gives policyholders a 3-business-day right of
rescission after signing a contract with a public adjuster, allowing them to cancel without
penalty.
Question 12:
, Which of the following statements is TRUE regarding a public adjuster’s conduct?
A. A public adjuster can offer a rebate if the claim is paid quickly.
B. A public adjuster may advise a client to fabricate damage if the insurer is
unresponsive.
C. A public adjuster must avoid conflicts of interest and act in the client’s best interest.
D. A public adjuster may enter into a contract before the policyholder contacts their
insurer.
✅ Answer: C. A public adjuster must avoid conflicts of interest and act in the client’s
best interest.
Rationale: Florida law and ethical standards require adjusters to avoid conflicts of
interest and act with honesty and integrity toward their clients.
Question 13:
Which of the following is NOT a valid responsibility of a public adjuster?
A. Estimating damages
B. Interpreting policy language
C. Representing the insurer in negotiations
D. Assisting in documentation of the loss
✅ Answer: C. Representing the insurer in negotiations
Rationale: Public adjusters are licensed to represent the insured, not the insurance
company. Representing the insurer would be a conflict of interest and a violation of law.
Question 14:
In a declared state of emergency, what is the maximum fee a public adjuster may
charge for a residential claim?
A. 25%
B. 20%
C. 15%
D. 10%
✅ Answer: D. 10%
Rationale: Under F.S. 626.854(10), during a declared state of emergency, public adjuster
fees for residential claims are capped at 10% of the claim payment for 1 year following
the declaration.
Question 15:
What must a public adjuster do upon receiving a claim payment check made out to
both the policyholder and the public adjuster?
A. Deposit the entire check into the public adjuster’s account
B. Return the check to the insurer
C. Endorse and deliver the check to the policyholder
D. Hold the check until the policyholder signs a release
✅ Answer: C. Endorse and deliver the check to the policyholder
Rationale: The check is co-payable; the adjuster cannot deposit or hold it unilaterally.
Course
Claims Adjuster
Question 1:
What is the primary duty of a public adjuster under Florida law?
A. Represent insurance companies
B. Set premium rates for policyholders
C. Represent policyholders in negotiating insurance claims
D. Appraise property value for tax purposes
✅ Answer: C. Represent policyholders in negotiating insurance claims
Rationale: A public adjuster is licensed to work on behalf of the insured, not the insurer,
and helps negotiate and settle claims with insurance companies.
Question 2:
How long must a licensed public adjuster retain client records and claim documents
in Florida?
A. 1 year
B. 3 years
C. 5 years
D. 10 years
✅ Answer: C. 5 years
Rationale: According to Florida Statute 626.8695, all records related to public adjusting
services must be retained for 5 years after the claim is resolved.
Question 3:
When may a public adjuster legally initiate contact with a policyholder after a state
of emergency has been declared?
A. Immediately after the event
B. Within 24 hours
C. After 48 hours
D. After 72 hours
✅ Answer: D. After 72 hours
Rationale: Florida law (F.S. 626.854(6)) prohibits public adjusters from initiating
contact with a potential client within the first 72 hours following a declared state of
emergency.
Question 4:
What must a public adjuster include in a contract with a policyholder?
A. The insurer’s claims adjuster’s name
B. The replacement cost of the loss
, C. Compensation method and cancellation terms
D. Appraisal panel details
✅ Answer: C. Compensation method and cancellation terms
Rationale: Per Florida Statute 626.8796, the written contract must clearly include the
adjuster's fee structure and the right to cancel within a specified time.
Question 5:
What is the maximum fee a public adjuster may charge for a residential claim not
tied to a declared emergency?
A. 25%
B. 20%
C. 10%
D. 15%
✅ Answer: B. 20%
Rationale: The Florida Administrative Code sets a cap of 20% on fees for non-
emergency residential claims to protect consumers from excessive charges.
Question 6:
What disciplinary action can be taken if a public adjuster misrepresents an
insurance policy's coverage?
A. None, if the client agrees
B. License suspension or revocation
C. Fine only
D. Warning letter
✅ Answer: B. License suspension or revocation
Rationale: Misrepresentation is considered a fraudulent and unethical act, and the
Florida Department of Financial Services can impose serious penalties, including license
suspension or revocation.
Question 7:
What is the term for the type of policy that reimburses the insured for the cost to
replace an item with a new one?
A. Actual Cash Value (ACV)
B. Stated Value
C. Replacement Cost
D. Agreed Value
✅ Answer: C. Replacement Cost
Rationale: Replacement Cost coverage pays to replace damaged property with a new
item of similar kind and quality, without deducting for depreciation.
Question 8:
, Which department regulates and licenses public adjusters in Florida?
A. Department of Revenue
B. Florida Office of Insurance Regulation
C. Florida Department of Financial Services (DFS)
D. Department of Business and Professional Regulation
✅ Answer: C. Florida Department of Financial Services (DFS)
Rationale: The DFS is the agency responsible for licensing, regulating, and
disciplining insurance professionals, including public adjusters, in Florida.
Question 9:
Which of the following is considered a first-party property insurance claim?
A. A guest sues a homeowner for injuries
B. A business sues another business for negligence
C. A homeowner files a wind damage claim with their insurer
D. An insurer sues a contractor for faulty repair
✅ Answer: C. A homeowner files a wind damage claim with their insurer
Rationale: A first-party claim involves a claim filed by the insured directly with their
own insurer, typically for damage to their own property.
Question 10:
How often must Florida public adjusters complete continuing education (CE)
requirements?
A. Annually
B. Every 2 years
C. Every 3 years
D. Every 5 years
✅ Answer: B. Every 2 years
Rationale: Florida law mandates that public adjusters complete 24 hours of continuing
education every 2 years, including ethics and adjuster-specific courses.
Question 11:
What is the cancellation period granted to a policyholder after signing a public
adjuster contract in Florida?
A. 24 hours
B. 48 hours
C. 3 business days
D. 5 calendar days
✅ Answer: C. 3 business days
Rationale: Florida law (F.S. 626.854) gives policyholders a 3-business-day right of
rescission after signing a contract with a public adjuster, allowing them to cancel without
penalty.
Question 12:
, Which of the following statements is TRUE regarding a public adjuster’s conduct?
A. A public adjuster can offer a rebate if the claim is paid quickly.
B. A public adjuster may advise a client to fabricate damage if the insurer is
unresponsive.
C. A public adjuster must avoid conflicts of interest and act in the client’s best interest.
D. A public adjuster may enter into a contract before the policyholder contacts their
insurer.
✅ Answer: C. A public adjuster must avoid conflicts of interest and act in the client’s
best interest.
Rationale: Florida law and ethical standards require adjusters to avoid conflicts of
interest and act with honesty and integrity toward their clients.
Question 13:
Which of the following is NOT a valid responsibility of a public adjuster?
A. Estimating damages
B. Interpreting policy language
C. Representing the insurer in negotiations
D. Assisting in documentation of the loss
✅ Answer: C. Representing the insurer in negotiations
Rationale: Public adjusters are licensed to represent the insured, not the insurance
company. Representing the insurer would be a conflict of interest and a violation of law.
Question 14:
In a declared state of emergency, what is the maximum fee a public adjuster may
charge for a residential claim?
A. 25%
B. 20%
C. 15%
D. 10%
✅ Answer: D. 10%
Rationale: Under F.S. 626.854(10), during a declared state of emergency, public adjuster
fees for residential claims are capped at 10% of the claim payment for 1 year following
the declaration.
Question 15:
What must a public adjuster do upon receiving a claim payment check made out to
both the policyholder and the public adjuster?
A. Deposit the entire check into the public adjuster’s account
B. Return the check to the insurer
C. Endorse and deliver the check to the policyholder
D. Hold the check until the policyholder signs a release
✅ Answer: C. Endorse and deliver the check to the policyholder
Rationale: The check is co-payable; the adjuster cannot deposit or hold it unilaterally.
