Florida Public Adjuster State Actual Exam Practice
Test & License Prep: Complete Questions with
Verified Answers
SECTION A: Florida Statutes & Administrative Code (Q1-25)
Q1: According to Florida Statute 626.854, the definition of "public adjuster" includes all
of the following activities EXCEPT:
A) Preparing, completing, or filing an insurance claim for an insured
B) Advising an insured about first-party claims for loss or damage
C) Investigating, appraising, or evaluating an insurance claim
D) Offering legal advice regarding policy interpretation or coverage disputes
Correct Answer: D
100% CORRECT RATIONALE:
● Statute Citation: FS 626.854(1)(a) defines public adjuster activities.
● Statutory Language: "A 'public adjuster' is any person... who, for money or any
other thing of value... (1) Prepares, completes, or files an insurance claim for an
insured; (2) Aids an insured in negotiating for or effecting the settlement of a
claim; (3) Investigates, appraises, or evaluates a claim; or (4) Advertises for
employment as a public adjuster."
● Application: Offering legal advice constitutes the unlicensed practice of law,
which is specifically excluded from public adjuster activities per FS 626.854(2)
and Florida Bar regulations.
● Penalty: Unlicensed practice of law is a third-degree felony under Florida law,
separate from DFS disciplinary actions.
● Common Misunderstanding: Public adjusters can explain policy provisions and
coverage terms but cannot provide legal advice, opinions on legal rights, or
represent clients in court proceedings.
,Q2: During a state of emergency declared by the Governor, Florida Statute 626.854(6)
prohibits public adjusters from charging fees exceeding what percentage on claims
made within this period?
A) 5% of the claim payment
B) 10% of the claim payment
C) 15% of the claim payment
D) 20% of the claim payment
Correct Answer: B
100% CORRECT RATIONALE:
● Statute Citation: FS 626.854(6)(a)1.
● Statutory Language: "A public adjuster may not charge, agree to, or accept any
compensation, payment, commission, fee, or other thing of value greater than 10
percent of the amount of insurance proceeds for a claim based on an event that
is the subject of a declaration of a state of emergency by the Governor."
● Application: The 10% cap applies only to claims for losses occurring within the
area and time period specified in the emergency declaration.
● Penalty: Violation is a third-degree felony per FS 626.8737(1)(b) and grounds for
license revocation.
● Common Misunderstanding: This cap applies only during the emergency period
for losses within the declared emergency area; the standard sliding scale fee
structure applies to non-emergency claims.
Q3: Under Florida Statute 626.854(6)(a)2., a public adjuster may not enter into a
contract with an insured within how many hours after a declared state of emergency?
A) 12 hours
B) 24 hours
C) 48 hours
D) 72 hours
Correct Answer: C
100% CORRECT RATIONALE:
● Statute Citation: FS 626.854(6)(a)2.
● Statutory Language: "A public adjuster may not enter into a contract... within 48
hours after the event that is the subject of a declaration of a state of emergency
by the Governor."
, ● Application: This "48-hour rule" protects vulnerable insureds immediately
following a catastrophic event from high-pressure solicitation tactics.
● Penalty: Violation constitutes a third-degree felony under FS 626.8737 and
subjects the license to immediate suspension or revocation.
● Common Misunderstanding: Some adjusters confuse this with the 72-hour
advertising restriction or believe it applies only to door-to-door solicitation rather
than any contract execution.
Q4: According to Florida Statute 626.8695, what is the minimum number of years of
experience required before an individual may apply for a public adjuster license?
A) No experience required; may apply immediately after passing exam
B) 6 months of claims experience
C) 12 months of experience as a licensed all-lines adjuster or independent adjuster
D) 24 months of experience in insurance claims
Correct Answer: C
100% CORRECT RATIONALE:
● Statute Citation: FS 626.8695(1)(c).
● Statutory Language: "Has been employed for at least 12 months as a licensed
all-lines adjuster or independent adjuster... or has successfully completed a
public adjuster apprenticeship program approved by the department."
● Application: The 12-month experience requirement ensures competency before
representing insureds. Experience must be documented and verifiable.
● Penalty: Falsification of experience constitutes misrepresentation under FS
626.8737 and may result in denial of application or subsequent license
revocation.
● Common Misunderstanding: Many believe any insurance experience qualifies;
however, only licensed all-lines or independent adjuster experience (or an
approved apprenticeship) satisfies the statutory requirement.
Q5: Florida Administrative Code 69B-220.051 requires that all public adjuster
advertisements and solicitations include which mandatory disclaimer?
A) "Licensed by the State of Florida"
B) "You may hire an attorney or public adjuster to help you"
C) "Not affiliated with any insurance company"
D) "Results not guaranteed"
Correct Answer: B
, 100% CORRECT RATIONALE:
● Rule Citation: FAC 69B-220.051(3)(a) and FS 626.854(6)(b)4.
● Statutory Language: "You may hire an attorney or a public adjuster to represent
you in the insurance claim process. The public adjuster fee shall not exceed the
limits set forth in s. 626.854(6) and (11)."
● Application: This disclaimer must appear in all advertisements, solicitations, and
contracts to ensure insureds understand their representation options.
● Penalty: Failure to include required disclaimers constitutes misleading
advertising under FS 626.9541 and may result in fines up to $10,000 per
violation.
● Common Misunderstanding: Some adjusters believe this disclaimer is only
required in contracts, but it must also appear in advertisements and solicitations.
Q6: Under Florida Statute 626.861, a licensed public adjuster must be appointed by
which entity to legally act as a public adjuster?
A) The Department of Financial Services
B) A licensed insurance company or managing general agent
C) A licensed public adjusting firm
D) No appointment is required for public adjusters
Correct Answer: C
100% CORRECT RATIONALE:
● Statute Citation: FS 626.861(1)(a) and (6)(a).
● Statutory Language: "A licensee may not act as an agent or adjuster unless
appointed by an appointing entity... For purposes of this section, a public
adjusting firm is an appointing entity."
● Application: Individual public adjusters must be appointed by a licensed public
adjusting firm. The firm itself must be licensed and maintain the appointment
records.
● Penalty: Acting without appointment is a violation of FS 626.8737 and may result
in license suspension and fines.
● Common Misunderstanding: Many confuse insurance agent appointments (by
insurers) with public adjuster appointments (by public adjusting firms). Individual
public adjusters cannot operate without firm appointment.
Q7: Florida Statute 626.854 requires public adjusters to maintain records of all
contracts and transactions for what minimum period?
Test & License Prep: Complete Questions with
Verified Answers
SECTION A: Florida Statutes & Administrative Code (Q1-25)
Q1: According to Florida Statute 626.854, the definition of "public adjuster" includes all
of the following activities EXCEPT:
A) Preparing, completing, or filing an insurance claim for an insured
B) Advising an insured about first-party claims for loss or damage
C) Investigating, appraising, or evaluating an insurance claim
D) Offering legal advice regarding policy interpretation or coverage disputes
Correct Answer: D
100% CORRECT RATIONALE:
● Statute Citation: FS 626.854(1)(a) defines public adjuster activities.
● Statutory Language: "A 'public adjuster' is any person... who, for money or any
other thing of value... (1) Prepares, completes, or files an insurance claim for an
insured; (2) Aids an insured in negotiating for or effecting the settlement of a
claim; (3) Investigates, appraises, or evaluates a claim; or (4) Advertises for
employment as a public adjuster."
● Application: Offering legal advice constitutes the unlicensed practice of law,
which is specifically excluded from public adjuster activities per FS 626.854(2)
and Florida Bar regulations.
● Penalty: Unlicensed practice of law is a third-degree felony under Florida law,
separate from DFS disciplinary actions.
● Common Misunderstanding: Public adjusters can explain policy provisions and
coverage terms but cannot provide legal advice, opinions on legal rights, or
represent clients in court proceedings.
,Q2: During a state of emergency declared by the Governor, Florida Statute 626.854(6)
prohibits public adjusters from charging fees exceeding what percentage on claims
made within this period?
A) 5% of the claim payment
B) 10% of the claim payment
C) 15% of the claim payment
D) 20% of the claim payment
Correct Answer: B
100% CORRECT RATIONALE:
● Statute Citation: FS 626.854(6)(a)1.
● Statutory Language: "A public adjuster may not charge, agree to, or accept any
compensation, payment, commission, fee, or other thing of value greater than 10
percent of the amount of insurance proceeds for a claim based on an event that
is the subject of a declaration of a state of emergency by the Governor."
● Application: The 10% cap applies only to claims for losses occurring within the
area and time period specified in the emergency declaration.
● Penalty: Violation is a third-degree felony per FS 626.8737(1)(b) and grounds for
license revocation.
● Common Misunderstanding: This cap applies only during the emergency period
for losses within the declared emergency area; the standard sliding scale fee
structure applies to non-emergency claims.
Q3: Under Florida Statute 626.854(6)(a)2., a public adjuster may not enter into a
contract with an insured within how many hours after a declared state of emergency?
A) 12 hours
B) 24 hours
C) 48 hours
D) 72 hours
Correct Answer: C
100% CORRECT RATIONALE:
● Statute Citation: FS 626.854(6)(a)2.
● Statutory Language: "A public adjuster may not enter into a contract... within 48
hours after the event that is the subject of a declaration of a state of emergency
by the Governor."
, ● Application: This "48-hour rule" protects vulnerable insureds immediately
following a catastrophic event from high-pressure solicitation tactics.
● Penalty: Violation constitutes a third-degree felony under FS 626.8737 and
subjects the license to immediate suspension or revocation.
● Common Misunderstanding: Some adjusters confuse this with the 72-hour
advertising restriction or believe it applies only to door-to-door solicitation rather
than any contract execution.
Q4: According to Florida Statute 626.8695, what is the minimum number of years of
experience required before an individual may apply for a public adjuster license?
A) No experience required; may apply immediately after passing exam
B) 6 months of claims experience
C) 12 months of experience as a licensed all-lines adjuster or independent adjuster
D) 24 months of experience in insurance claims
Correct Answer: C
100% CORRECT RATIONALE:
● Statute Citation: FS 626.8695(1)(c).
● Statutory Language: "Has been employed for at least 12 months as a licensed
all-lines adjuster or independent adjuster... or has successfully completed a
public adjuster apprenticeship program approved by the department."
● Application: The 12-month experience requirement ensures competency before
representing insureds. Experience must be documented and verifiable.
● Penalty: Falsification of experience constitutes misrepresentation under FS
626.8737 and may result in denial of application or subsequent license
revocation.
● Common Misunderstanding: Many believe any insurance experience qualifies;
however, only licensed all-lines or independent adjuster experience (or an
approved apprenticeship) satisfies the statutory requirement.
Q5: Florida Administrative Code 69B-220.051 requires that all public adjuster
advertisements and solicitations include which mandatory disclaimer?
A) "Licensed by the State of Florida"
B) "You may hire an attorney or public adjuster to help you"
C) "Not affiliated with any insurance company"
D) "Results not guaranteed"
Correct Answer: B
, 100% CORRECT RATIONALE:
● Rule Citation: FAC 69B-220.051(3)(a) and FS 626.854(6)(b)4.
● Statutory Language: "You may hire an attorney or a public adjuster to represent
you in the insurance claim process. The public adjuster fee shall not exceed the
limits set forth in s. 626.854(6) and (11)."
● Application: This disclaimer must appear in all advertisements, solicitations, and
contracts to ensure insureds understand their representation options.
● Penalty: Failure to include required disclaimers constitutes misleading
advertising under FS 626.9541 and may result in fines up to $10,000 per
violation.
● Common Misunderstanding: Some adjusters believe this disclaimer is only
required in contracts, but it must also appear in advertisements and solicitations.
Q6: Under Florida Statute 626.861, a licensed public adjuster must be appointed by
which entity to legally act as a public adjuster?
A) The Department of Financial Services
B) A licensed insurance company or managing general agent
C) A licensed public adjusting firm
D) No appointment is required for public adjusters
Correct Answer: C
100% CORRECT RATIONALE:
● Statute Citation: FS 626.861(1)(a) and (6)(a).
● Statutory Language: "A licensee may not act as an agent or adjuster unless
appointed by an appointing entity... For purposes of this section, a public
adjusting firm is an appointing entity."
● Application: Individual public adjusters must be appointed by a licensed public
adjusting firm. The firm itself must be licensed and maintain the appointment
records.
● Penalty: Acting without appointment is a violation of FS 626.8737 and may result
in license suspension and fines.
● Common Misunderstanding: Many confuse insurance agent appointments (by
insurers) with public adjuster appointments (by public adjusting firms). Individual
public adjusters cannot operate without firm appointment.
Q7: Florida Statute 626.854 requires public adjusters to maintain records of all
contracts and transactions for what minimum period?
