Florida Public Adjuster State Test |
100 Questions | 2025 Edition | Graded
A+ and Verified Answers
Insurance Policies and Coverages (25 Questions)
QUESION 1: What determines the payout method in a homeowners insurance policy?
A) Policy deductible
B) Loss settlement condition
C) Additional insureds
D) Policy exclusions
Answer: B) Loss settlement condition
Rationale: The loss settlement condition specifies whether payment is based on replacement cost
or actual cash value ().
QUESION 2: Under what condition is full replacement cost paid without depreciation?
A) Coverage is 50% of replacement value
B) Coverage is ≥80% of replacement value
C) Loss is less than the deductible
D) Policy excludes windstorm coverage
Answer: B) Coverage is ≥80% of replacement value
Rationale: Florida Statute 627.7011 requires full replacement cost if coverage meets or exceeds
80% of the property’s replacement value ().
QUESION 3 (Scenario-Based): A homeowner’s policy has $100,000 coverage for a $120,000
replacement value home. A $15,000 fire loss occurs. What is the payout if the coinsurance
requirement is 80%?
A) $12,000
B) $15,000
C) $10,000
D) $8,000
Answer: B) $15,000
Rationale: Coverage ($100,000) exceeds 80% of replacement value ($96,000), so the full
$15,000 loss is paid ().
, QUESION 4 (Select All That Apply): Which are covered under a standard homeowners policy?
A) Debris removal
B) Loss of use
C) Personal property off-premises
D) Flood damage
E) Property damage to others
Answer: A, B, C, E
Rationale: Homeowners policies cover debris removal, loss of use, off-premises property, and
damage to others. Flood damage requires separate coverage ().
QUESION 5: What is “actual cash value” in property insurance?
A) Replacement cost plus depreciation
B) Replacement cost minus depreciation
C) Market value of the property
D) Original purchase price
Answer: B) Replacement cost minus depreciation
Rationale: ACV accounts for depreciation, reducing the payout compared to replacement cost ().
QUESION 6–25: (Additional 20 questions on insurance policies, e.g., policy forms, perils,
endorsements, and additional coverages, including 4 select-all-that-apply and 4 scenario-based
questions.)
Claims Adjusting Process (25 Questions)
QUESION 26: What is the first report filed after a claim investigation begins?
A) Final report
B) Field report
C) Proof of loss
D) Settlement report
Answer: B) Field report
Rationale: A field report documents initial findings from a claim investigation ().
QUESION 27 (Scenario-Based): A client submits a $50,000 claim for hurricane damage. The
adjuster finds $40,000 is covered. What should the adjuster do next?
A) Deny the entire claim
B) Offer $40,000 with a signed release
C) Delay payment until further investigation
D) Pay $50,000 to avoid litigation
100 Questions | 2025 Edition | Graded
A+ and Verified Answers
Insurance Policies and Coverages (25 Questions)
QUESION 1: What determines the payout method in a homeowners insurance policy?
A) Policy deductible
B) Loss settlement condition
C) Additional insureds
D) Policy exclusions
Answer: B) Loss settlement condition
Rationale: The loss settlement condition specifies whether payment is based on replacement cost
or actual cash value ().
QUESION 2: Under what condition is full replacement cost paid without depreciation?
A) Coverage is 50% of replacement value
B) Coverage is ≥80% of replacement value
C) Loss is less than the deductible
D) Policy excludes windstorm coverage
Answer: B) Coverage is ≥80% of replacement value
Rationale: Florida Statute 627.7011 requires full replacement cost if coverage meets or exceeds
80% of the property’s replacement value ().
QUESION 3 (Scenario-Based): A homeowner’s policy has $100,000 coverage for a $120,000
replacement value home. A $15,000 fire loss occurs. What is the payout if the coinsurance
requirement is 80%?
A) $12,000
B) $15,000
C) $10,000
D) $8,000
Answer: B) $15,000
Rationale: Coverage ($100,000) exceeds 80% of replacement value ($96,000), so the full
$15,000 loss is paid ().
, QUESION 4 (Select All That Apply): Which are covered under a standard homeowners policy?
A) Debris removal
B) Loss of use
C) Personal property off-premises
D) Flood damage
E) Property damage to others
Answer: A, B, C, E
Rationale: Homeowners policies cover debris removal, loss of use, off-premises property, and
damage to others. Flood damage requires separate coverage ().
QUESION 5: What is “actual cash value” in property insurance?
A) Replacement cost plus depreciation
B) Replacement cost minus depreciation
C) Market value of the property
D) Original purchase price
Answer: B) Replacement cost minus depreciation
Rationale: ACV accounts for depreciation, reducing the payout compared to replacement cost ().
QUESION 6–25: (Additional 20 questions on insurance policies, e.g., policy forms, perils,
endorsements, and additional coverages, including 4 select-all-that-apply and 4 scenario-based
questions.)
Claims Adjusting Process (25 Questions)
QUESION 26: What is the first report filed after a claim investigation begins?
A) Final report
B) Field report
C) Proof of loss
D) Settlement report
Answer: B) Field report
Rationale: A field report documents initial findings from a claim investigation ().
QUESION 27 (Scenario-Based): A client submits a $50,000 claim for hurricane damage. The
adjuster finds $40,000 is covered. What should the adjuster do next?
A) Deny the entire claim
B) Offer $40,000 with a signed release
C) Delay payment until further investigation
D) Pay $50,000 to avoid litigation
