FLORIDA 3-20 PUBLIC ADJUSTER STATE EXAM
140 COMPREHENSIVE STUDY GUIDE 2026
INSURANCE CLAIMS ADJUSTING PRINCIPLES
AND FLORIDA REGULATIONS
◉ Someone who has care, custody or control of another's property.
Answer: Bailee
◉ Claim filed by policy holder against his _.
Answer: First Party Claim
◉ When a person who entrusts another with an object and it results
in injury to someone can be held liable for the injury to someone.
Can be held liable for the injury i.e. Firearm or DWI.
Answer: Negligent Entrustment
◉ Hazard that results from a conscious decision made by an insured
to participate in a manner or behavior more likely to result in a loss
because they have insurance.
Answer: Moral Hazard
,◉ Used to provide temporary insurance coverage until an insurance
policy can be written.
Answer: Binder
◉ Required by lenders to guarantee that outstanding loans against a
job are paid upon completion.
Answer: Completion Bonds
◉ The section of an insurance policy identifying the insured,
endorsements, coverages, limits, and premiums.
Answer: Declarations
◉ Policyholder cannot transfer the policy to someone else without
written permission from their insurance company.
Answer: Assignment
◉ An instance, behavior or environment that increases the
likelihood of a loss on an insured item.
Answer: Hazard
◉ Actual cause or source of an incidence of destruction, injury, or
loss.
Answer: Peril
, ◉ An insurance company organized and domiciled outside the US.
Answer: Alien
◉ When there is an unbroken chain of events between an
occurrence and a loss, then the loss is part of the original
occurrence.
Answer: Proximate Cause
◉ Is proximate cause of all subsequent damages.
Answer: Original Occurance
◉ An individual who contracts with an adjusting firm as an
independent contractor and handles claims for the insurance
companies.
Answer: Independent Adjuster
◉ Action or practice of the insured party is permitted to continue
because any defense against a continuation of said action or practice
has been waived by the insurer.
Answer: Estoppel
◉ Operate for profit, collect premiums, reserve a portion of
premiums to pay claims.
140 COMPREHENSIVE STUDY GUIDE 2026
INSURANCE CLAIMS ADJUSTING PRINCIPLES
AND FLORIDA REGULATIONS
◉ Someone who has care, custody or control of another's property.
Answer: Bailee
◉ Claim filed by policy holder against his _.
Answer: First Party Claim
◉ When a person who entrusts another with an object and it results
in injury to someone can be held liable for the injury to someone.
Can be held liable for the injury i.e. Firearm or DWI.
Answer: Negligent Entrustment
◉ Hazard that results from a conscious decision made by an insured
to participate in a manner or behavior more likely to result in a loss
because they have insurance.
Answer: Moral Hazard
,◉ Used to provide temporary insurance coverage until an insurance
policy can be written.
Answer: Binder
◉ Required by lenders to guarantee that outstanding loans against a
job are paid upon completion.
Answer: Completion Bonds
◉ The section of an insurance policy identifying the insured,
endorsements, coverages, limits, and premiums.
Answer: Declarations
◉ Policyholder cannot transfer the policy to someone else without
written permission from their insurance company.
Answer: Assignment
◉ An instance, behavior or environment that increases the
likelihood of a loss on an insured item.
Answer: Hazard
◉ Actual cause or source of an incidence of destruction, injury, or
loss.
Answer: Peril
, ◉ An insurance company organized and domiciled outside the US.
Answer: Alien
◉ When there is an unbroken chain of events between an
occurrence and a loss, then the loss is part of the original
occurrence.
Answer: Proximate Cause
◉ Is proximate cause of all subsequent damages.
Answer: Original Occurance
◉ An individual who contracts with an adjusting firm as an
independent contractor and handles claims for the insurance
companies.
Answer: Independent Adjuster
◉ Action or practice of the insured party is permitted to continue
because any defense against a continuation of said action or practice
has been waived by the insurer.
Answer: Estoppel
◉ Operate for profit, collect premiums, reserve a portion of
premiums to pay claims.
