Florida 3-20 Public Adjusters State Exam (Set 1)| 140
QUESTIONS| 11 PAGES
Course
Claims Adjuster
Question 1
What is the primary responsibility of a public adjuster?
A) To represent insurance companies
B) To represent policyholders in negotiating insurance claims
C) To manage claims for government programs
D) To provide legal advice to policyholders
Answer: B) To represent policyholders in negotiating insurance claims
Rationale: Public adjusters are licensed professionals who work on behalf of policyholders
to help them negotiate and settle their insurance claims, ensuring they receive a fair
settlement.
Question 2
In Florida, what is the maximum percentage a public adjuster can charge as a fee on a
property claim?
A) 10%
B) 20%
C) 25%
D) 15%
Answer: B) 20%
Rationale: Florida law limits public adjuster fees to a maximum of 20% of the total amount
recovered on a property claim, ensuring that adjusters remain incentivized while protecting
consumers.
Question 3
Which of the following is NOT a requirement to become a licensed public adjuster in
Florida?
A) Completion of a state-approved training program
B) Passing the state licensing exam
C) Having prior experience in insurance claims
D) Submitting a fingerprint background check
,Answer: C) Having prior experience in insurance claims
Rationale: While experience can be beneficial, it is not a formal requirement to obtain a
public adjuster license in Florida. The main requirements include training, passing the exam,
and background checks.
Question 4
What is the purpose of a public adjuster's scope of work?
A) To determine the insurance company's liability
B) To assess and document damages for a claim
C) To file a lawsuit against the insurance company
D) To handle all insurance claims without limitations
Answer: B) To assess and document damages for a claim
Rationale: The public adjuster’s scope of work includes evaluating the extent of the damages
and providing detailed documentation to support the policyholder's claim.
Question 5
What must a public adjuster do if they receive a commission from the insurance
company for a referral?
A) Disclose the commission to the policyholder
B) Keep the commission confidential
C) Refuse the commission altogether
D) Report the commission to the state board
Answer: A) Disclose the commission to the policyholder
Rationale: Transparency is crucial in the public adjusting profession. Adjusters are required
to disclose any commissions or fees received from referrals to maintain trust and integrity.
Question 6
Which of the following is a common reason for a claim denial?
A) The claim was filed within the policy's time frame
B) The policyholder failed to pay their premium
C) The adjuster documented all damages accurately
D) The policyholder has a public adjuster representing them
Answer: B) The policyholder failed to pay their premium
Rationale: If a policyholder has not paid their insurance premiums, the insurance company
may deny the claim due to the policy being inactive or void.
,Question 7
What is the statute of limitations for filing a property insurance claim in Florida?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
Rationale: Florida law generally allows three years from the date of loss to file a property
insurance claim, emphasizing the importance of timely reporting.
Question 8
What is an endorsement in an insurance policy?
A) A denial of coverage
B) A modification to the original policy terms
C) A type of claim
D) A standard coverage option
Answer: B) A modification to the original policy terms
Rationale: An endorsement is an addition or change to an insurance policy that alters the
original terms, providing additional coverage or excluding certain risks.
Question 9
What document is essential for a public adjuster to provide to their client before
starting work?
A) A confidentiality agreement
B) A written contract detailing fees and services
C) A list of all past clients
D) A certificate of insurance
Answer: B) A written contract detailing fees and services
Rationale: Florida law requires public adjusters to provide a written contract that outlines the
services to be performed and the fees to be charged, ensuring clarity for both parties.
Question 10
, If a policyholder feels their claim has been unfairly denied, what action can a public
adjuster assist them with?
A) Filing a lawsuit immediately
B) Appealing the claim denial
C) Closing the claim
D) Switching insurance providers
Answer: B) Appealing the claim denial
Rationale: Public adjusters can assist policyholders in the appeal process for denied claims,
providing necessary documentation and advocacy to strengthen their case.
Question 11
What does the term "actual cash value" (ACV) refer to in insurance?
A) The total replacement cost of an item
B) The depreciated value of an item at the time of loss
C) The market value of a property
D) The maximum payout of an insurance policy
Answer: B) The depreciated value of an item at the time of loss
Rationale: Actual cash value (ACV) is calculated by taking the replacement cost of an item
and subtracting depreciation, representing what the item was worth at the time of the loss.
Question 12
What should a public adjuster do immediately after a disaster occurs?
A) File the claim with the insurance company
B) Assess the damages and gather evidence
C) Wait for the insurance company to respond
D) Advise the policyholder to abandon the property
Answer: B) Assess the damages and gather evidence
Rationale: The public adjuster’s first step should be to document the damages thoroughly
and gather evidence to support the claim, which is crucial for successful negotiations.
Question 13
In Florida, what is the primary purpose of the Florida Department of Financial
Services?
A) To provide legal representation for policyholders
B) To regulate and oversee the insurance industry
QUESTIONS| 11 PAGES
Course
Claims Adjuster
Question 1
What is the primary responsibility of a public adjuster?
A) To represent insurance companies
B) To represent policyholders in negotiating insurance claims
C) To manage claims for government programs
D) To provide legal advice to policyholders
Answer: B) To represent policyholders in negotiating insurance claims
Rationale: Public adjusters are licensed professionals who work on behalf of policyholders
to help them negotiate and settle their insurance claims, ensuring they receive a fair
settlement.
Question 2
In Florida, what is the maximum percentage a public adjuster can charge as a fee on a
property claim?
A) 10%
B) 20%
C) 25%
D) 15%
Answer: B) 20%
Rationale: Florida law limits public adjuster fees to a maximum of 20% of the total amount
recovered on a property claim, ensuring that adjusters remain incentivized while protecting
consumers.
Question 3
Which of the following is NOT a requirement to become a licensed public adjuster in
Florida?
A) Completion of a state-approved training program
B) Passing the state licensing exam
C) Having prior experience in insurance claims
D) Submitting a fingerprint background check
,Answer: C) Having prior experience in insurance claims
Rationale: While experience can be beneficial, it is not a formal requirement to obtain a
public adjuster license in Florida. The main requirements include training, passing the exam,
and background checks.
Question 4
What is the purpose of a public adjuster's scope of work?
A) To determine the insurance company's liability
B) To assess and document damages for a claim
C) To file a lawsuit against the insurance company
D) To handle all insurance claims without limitations
Answer: B) To assess and document damages for a claim
Rationale: The public adjuster’s scope of work includes evaluating the extent of the damages
and providing detailed documentation to support the policyholder's claim.
Question 5
What must a public adjuster do if they receive a commission from the insurance
company for a referral?
A) Disclose the commission to the policyholder
B) Keep the commission confidential
C) Refuse the commission altogether
D) Report the commission to the state board
Answer: A) Disclose the commission to the policyholder
Rationale: Transparency is crucial in the public adjusting profession. Adjusters are required
to disclose any commissions or fees received from referrals to maintain trust and integrity.
Question 6
Which of the following is a common reason for a claim denial?
A) The claim was filed within the policy's time frame
B) The policyholder failed to pay their premium
C) The adjuster documented all damages accurately
D) The policyholder has a public adjuster representing them
Answer: B) The policyholder failed to pay their premium
Rationale: If a policyholder has not paid their insurance premiums, the insurance company
may deny the claim due to the policy being inactive or void.
,Question 7
What is the statute of limitations for filing a property insurance claim in Florida?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
Rationale: Florida law generally allows three years from the date of loss to file a property
insurance claim, emphasizing the importance of timely reporting.
Question 8
What is an endorsement in an insurance policy?
A) A denial of coverage
B) A modification to the original policy terms
C) A type of claim
D) A standard coverage option
Answer: B) A modification to the original policy terms
Rationale: An endorsement is an addition or change to an insurance policy that alters the
original terms, providing additional coverage or excluding certain risks.
Question 9
What document is essential for a public adjuster to provide to their client before
starting work?
A) A confidentiality agreement
B) A written contract detailing fees and services
C) A list of all past clients
D) A certificate of insurance
Answer: B) A written contract detailing fees and services
Rationale: Florida law requires public adjusters to provide a written contract that outlines the
services to be performed and the fees to be charged, ensuring clarity for both parties.
Question 10
, If a policyholder feels their claim has been unfairly denied, what action can a public
adjuster assist them with?
A) Filing a lawsuit immediately
B) Appealing the claim denial
C) Closing the claim
D) Switching insurance providers
Answer: B) Appealing the claim denial
Rationale: Public adjusters can assist policyholders in the appeal process for denied claims,
providing necessary documentation and advocacy to strengthen their case.
Question 11
What does the term "actual cash value" (ACV) refer to in insurance?
A) The total replacement cost of an item
B) The depreciated value of an item at the time of loss
C) The market value of a property
D) The maximum payout of an insurance policy
Answer: B) The depreciated value of an item at the time of loss
Rationale: Actual cash value (ACV) is calculated by taking the replacement cost of an item
and subtracting depreciation, representing what the item was worth at the time of the loss.
Question 12
What should a public adjuster do immediately after a disaster occurs?
A) File the claim with the insurance company
B) Assess the damages and gather evidence
C) Wait for the insurance company to respond
D) Advise the policyholder to abandon the property
Answer: B) Assess the damages and gather evidence
Rationale: The public adjuster’s first step should be to document the damages thoroughly
and gather evidence to support the claim, which is crucial for successful negotiations.
Question 13
In Florida, what is the primary purpose of the Florida Department of Financial
Services?
A) To provide legal representation for policyholders
B) To regulate and oversee the insurance industry
