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FLORIDA 3-20 PUBLIC ADJUSTERS STATE EXAM
ALL 200 QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
1. Which party hires a public adjuster?
A. The insurance company
B. The Department of Financial Services
C. The insured
D. The reinsurer
✅ Correct Answer: C. The insured
Rationale: A public adjuster represents the policyholder, not the insurer, and works exclusively
in the insured’s interest.
2. What type of contract is an insurance policy because only the insurer makes a legally
enforceable promise?
A. Conditional
B. Aleatory
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C. Unilateral
D. Executory
✅ Correct Answer: C. Unilateral
Rationale: Only the insurer promises to pay covered losses; the insured is not required to file a
claim.
3. Which principle prevents an insured from profiting from a loss?
A. Insurable interest
B. Subrogation
C. Indemnity
D. Proximate cause
✅ Correct Answer: C. Indemnity
Rationale: Indemnity restores the insured to their financial position prior to loss—no gain
allowed.
4. Which hazard results from poor maintenance of property?
A. Moral hazard
B. Morale hazard
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C. Legal hazard
D. Physical hazard
✅ Correct Answer: D. Physical hazard
Rationale: Unsafe physical conditions (e.g., faulty wiring) increase the likelihood of loss.
5. What must exist at the time of loss for a policy to respond?
A. Proximate cause
B. Deductible
C. Insurable interest
D. Subrogation
✅ Correct Answer: C. Insurable interest
Rationale: The insured must suffer a financial loss when the damage occurs.
6. Which type of risk involves the possibility of loss only?
A. Speculative
B. Pure
C. Financial
D. Dynamic
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✅ Correct Answer: B. Pure
Rationale: Insurance only covers pure risks, not speculative risks that involve gain or loss.
7. A loss caused by fire leading to smoke damage is an example of:
A. Concurrent causation
B. Remote cause
C. Proximate cause
D. Intervening cause
✅ Correct Answer: C. Proximate cause
Rationale: The fire is the dominant cause that set the chain of events in motion.
8. What policy provision transfers the insured’s rights to the insurer after payment of a loss?
A. Assignment
B. Contribution
C. Subrogation
D. Indemnity
✅ Correct Answer: C. Subrogation
Rationale: Allows the insurer to recover from negligent third parties.
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FLORIDA 3-20 PUBLIC ADJUSTERS STATE EXAM
ALL 200 QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
1. Which party hires a public adjuster?
A. The insurance company
B. The Department of Financial Services
C. The insured
D. The reinsurer
✅ Correct Answer: C. The insured
Rationale: A public adjuster represents the policyholder, not the insurer, and works exclusively
in the insured’s interest.
2. What type of contract is an insurance policy because only the insurer makes a legally
enforceable promise?
A. Conditional
B. Aleatory
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C. Unilateral
D. Executory
✅ Correct Answer: C. Unilateral
Rationale: Only the insurer promises to pay covered losses; the insured is not required to file a
claim.
3. Which principle prevents an insured from profiting from a loss?
A. Insurable interest
B. Subrogation
C. Indemnity
D. Proximate cause
✅ Correct Answer: C. Indemnity
Rationale: Indemnity restores the insured to their financial position prior to loss—no gain
allowed.
4. Which hazard results from poor maintenance of property?
A. Moral hazard
B. Morale hazard
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C. Legal hazard
D. Physical hazard
✅ Correct Answer: D. Physical hazard
Rationale: Unsafe physical conditions (e.g., faulty wiring) increase the likelihood of loss.
5. What must exist at the time of loss for a policy to respond?
A. Proximate cause
B. Deductible
C. Insurable interest
D. Subrogation
✅ Correct Answer: C. Insurable interest
Rationale: The insured must suffer a financial loss when the damage occurs.
6. Which type of risk involves the possibility of loss only?
A. Speculative
B. Pure
C. Financial
D. Dynamic
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✅ Correct Answer: B. Pure
Rationale: Insurance only covers pure risks, not speculative risks that involve gain or loss.
7. A loss caused by fire leading to smoke damage is an example of:
A. Concurrent causation
B. Remote cause
C. Proximate cause
D. Intervening cause
✅ Correct Answer: C. Proximate cause
Rationale: The fire is the dominant cause that set the chain of events in motion.
8. What policy provision transfers the insured’s rights to the insurer after payment of a loss?
A. Assignment
B. Contribution
C. Subrogation
D. Indemnity
✅ Correct Answer: C. Subrogation
Rationale: Allows the insurer to recover from negligent third parties.
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