FLORIDA 3-20 PUBLIC ADJUSTER EXAM
QUESTIONS AND ANSWERS
True or False: Both mediation and sinkhole neutral evaluation are non-binding.
Neither the insured nor the insurance company is legally obligated to accept the
outcome of the mediation conference. - correct-answer-True
The ______________ is intended for use by parties who are beginning the process
of filing suit against an insurer, when a party feels they have been damaged by
specific acts of the insurer. The Notice is intended to meet a portion of legal
requirements set forth in Section 624.155, Florida Statutes, which requires a party
to file Notice with both the insurer and the Department of Financial Services (DFS)
at least 60 days prior to bringing an action against the insurer. The DFS does not
involve itself in the pre-suit negotiations or communications related to Notices as
such actions are not within the scope of its statutory authority. - correct-answer-
Civil Remedies Notice
Mediation Statute 627.7015 - correct-answer-The department shall adopt by rule
a property insurance mediation program to be administered by the department or
its designee. The department may also adopt special rules which are applicable in
cases of an emergency within the state. The rules shall be modeled after practices
and procedures set forth in mediation rules of procedure adopted by the Supreme
Court. The rules shall provide for:(a) Reasonable requirement for processing and
scheduling of requests for mediation.(b) Qualifications, denial of application,
suspension, revocation of approval, and other penalties for mediators as provided
in s. 627.745 and the Florida Rules for Certified and Court-Appointed Mediators.
(c) Provisions governing who may attend mediation conferences.(d) Selection of
mediators.(e) Criteria for the conduct of mediation conferences.(f) Right to legal
counsel.
(5) All statements made and documents produced at a mediation conference shall
be deemed to be settlement negotiations in anticipation of litigation within the
scope of s. 90.408. All parties to the mediation must negotiate in good faith and
must have the authority to immediately settle the claim. Mediators are deemed to
be agents of the department and shall have the immunity from suit provided in s.
,44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the
policyholder has 3 business days within which the policyholder may rescind the
settlement unless the policyholder has cashed or deposited any check or draft
disbursed to the policyholder for the disputed matters as a result of the
conference. If a settlement agreement is reached and is not rescinded, it is
binding and acts as a release of all specific claims that were presented in that
mediation conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report
of the re
Code of ethics (FAC 69B-220.201) - correct-answer-The work of adjusting
insurance claims engages the public trust. An adjuster shall put the duty for fair
and honest treatment of the claimant above the adjuster's own interests in every
instance. ... (b) An adjuster shall treat all claimants equally.
Florida Insurance Guaranty Association - correct-answer-establishes and maintains
a service-oriented operation for processing covered claims of insolvent members.
FIGA is a nonprofit corporation created by the Florida Legislature in 1970. FIGA
services pending claims by or against Florida policyholders of member insurance
companies which become insolvent and are ordered liquidated.
The Residential Property and Casualty Joint Underwriting Association originally
created by this statute shall be known as the Citizens Property Insurance
Corporation - correct-answer-The corporation shall provide insurance for
residential and commercial property, for applicants who are entitled, but, in good
faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage - correct-
answer-We will pay for "loss" to a covered "auto" or its equipment under:
a. Comprehensive Coverage From any cause except: (1) The covered "auto's"
collision with another object; or (2) The covered "auto's" overturn.
, b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion;
(2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism;
or (6) The sinking, burning, collision or derailment of any conveyance transporting
the covered "auto".
c. Collision Coverage Caused by: (1) The covered "auto's" collision with another
object; or (2) The covered "auto's" overturn.
Part D - Coverage for damage to your auto - correct-answer-the insurance
company agrees to pay an amount in excess of your deductible for direct and
accidental loss to your covered car or any other car specified in the agreement.
Thus, it pays for damage or theft to your car.
627.70131 Insurer's duty to acknowledge communications regarding claims;
investigation. - correct-answer-(1) Upon an insurer's receiving a communication
with respect to a claim, the insurer shall, within 14 calendar days, review and
acknowledge receipt of such communication unless payment is made within that
period of time or unless the failure to acknowledge is caused by factors beyond
the control of the insurer which reasonably prevent such acknowledgment. If the
acknowledgment is not in writing, a notification indicating acknowledgment shall
be made in the insurer's claim file and dated. A communication made to or by an
agent of an insurer with respect to a claim shall constitute communication to or by
the insurer.
(2) Such acknowledgment shall be responsive to the communication. If the
communication constitutes a notification of a claim, unless the acknowledgment
reasonably advises the claimant that the claim appears not to be covered by the
insurer, the acknowledgment shall provide necessary claim forms, and
instructions, including an appropriate telephone number.
(3) Unless otherwise provided by the policy of insurance or by law, within 10
working days after an insurer receives proof of loss statements, the insurer shall
begin such investigation as is reasonably necessary unless the failure to begin such
investigation is caused by factors beyond the control of the insurer which
reasonably prevent the commencement of such investigation.
(4) For purposes of this section, the term "insurer" means any residential property
insurer.
(5)(a) Within 90 days after an insurer receives notice of an initial, reopened, or
supplemental property insurance claim from a policyholder, the insurer shall pay
QUESTIONS AND ANSWERS
True or False: Both mediation and sinkhole neutral evaluation are non-binding.
Neither the insured nor the insurance company is legally obligated to accept the
outcome of the mediation conference. - correct-answer-True
The ______________ is intended for use by parties who are beginning the process
of filing suit against an insurer, when a party feels they have been damaged by
specific acts of the insurer. The Notice is intended to meet a portion of legal
requirements set forth in Section 624.155, Florida Statutes, which requires a party
to file Notice with both the insurer and the Department of Financial Services (DFS)
at least 60 days prior to bringing an action against the insurer. The DFS does not
involve itself in the pre-suit negotiations or communications related to Notices as
such actions are not within the scope of its statutory authority. - correct-answer-
Civil Remedies Notice
Mediation Statute 627.7015 - correct-answer-The department shall adopt by rule
a property insurance mediation program to be administered by the department or
its designee. The department may also adopt special rules which are applicable in
cases of an emergency within the state. The rules shall be modeled after practices
and procedures set forth in mediation rules of procedure adopted by the Supreme
Court. The rules shall provide for:(a) Reasonable requirement for processing and
scheduling of requests for mediation.(b) Qualifications, denial of application,
suspension, revocation of approval, and other penalties for mediators as provided
in s. 627.745 and the Florida Rules for Certified and Court-Appointed Mediators.
(c) Provisions governing who may attend mediation conferences.(d) Selection of
mediators.(e) Criteria for the conduct of mediation conferences.(f) Right to legal
counsel.
(5) All statements made and documents produced at a mediation conference shall
be deemed to be settlement negotiations in anticipation of litigation within the
scope of s. 90.408. All parties to the mediation must negotiate in good faith and
must have the authority to immediately settle the claim. Mediators are deemed to
be agents of the department and shall have the immunity from suit provided in s.
,44.107.
(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the
policyholder has 3 business days within which the policyholder may rescind the
settlement unless the policyholder has cashed or deposited any check or draft
disbursed to the policyholder for the disputed matters as a result of the
conference. If a settlement agreement is reached and is not rescinded, it is
binding and acts as a release of all specific claims that were presented in that
mediation conference.
(b) At the conclusion of the mediation, the mediator shall provide a written report
of the re
Code of ethics (FAC 69B-220.201) - correct-answer-The work of adjusting
insurance claims engages the public trust. An adjuster shall put the duty for fair
and honest treatment of the claimant above the adjuster's own interests in every
instance. ... (b) An adjuster shall treat all claimants equally.
Florida Insurance Guaranty Association - correct-answer-establishes and maintains
a service-oriented operation for processing covered claims of insolvent members.
FIGA is a nonprofit corporation created by the Florida Legislature in 1970. FIGA
services pending claims by or against Florida policyholders of member insurance
companies which become insolvent and are ordered liquidated.
The Residential Property and Casualty Joint Underwriting Association originally
created by this statute shall be known as the Citizens Property Insurance
Corporation - correct-answer-The corporation shall provide insurance for
residential and commercial property, for applicants who are entitled, but, in good
faith, are unable to procure insurance through the voluntary market.
Business auto coverage form Section 3 Physical Damage Coverage - correct-
answer-We will pay for "loss" to a covered "auto" or its equipment under:
a. Comprehensive Coverage From any cause except: (1) The covered "auto's"
collision with another object; or (2) The covered "auto's" overturn.
, b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion;
(2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism;
or (6) The sinking, burning, collision or derailment of any conveyance transporting
the covered "auto".
c. Collision Coverage Caused by: (1) The covered "auto's" collision with another
object; or (2) The covered "auto's" overturn.
Part D - Coverage for damage to your auto - correct-answer-the insurance
company agrees to pay an amount in excess of your deductible for direct and
accidental loss to your covered car or any other car specified in the agreement.
Thus, it pays for damage or theft to your car.
627.70131 Insurer's duty to acknowledge communications regarding claims;
investigation. - correct-answer-(1) Upon an insurer's receiving a communication
with respect to a claim, the insurer shall, within 14 calendar days, review and
acknowledge receipt of such communication unless payment is made within that
period of time or unless the failure to acknowledge is caused by factors beyond
the control of the insurer which reasonably prevent such acknowledgment. If the
acknowledgment is not in writing, a notification indicating acknowledgment shall
be made in the insurer's claim file and dated. A communication made to or by an
agent of an insurer with respect to a claim shall constitute communication to or by
the insurer.
(2) Such acknowledgment shall be responsive to the communication. If the
communication constitutes a notification of a claim, unless the acknowledgment
reasonably advises the claimant that the claim appears not to be covered by the
insurer, the acknowledgment shall provide necessary claim forms, and
instructions, including an appropriate telephone number.
(3) Unless otherwise provided by the policy of insurance or by law, within 10
working days after an insurer receives proof of loss statements, the insurer shall
begin such investigation as is reasonably necessary unless the failure to begin such
investigation is caused by factors beyond the control of the insurer which
reasonably prevent the commencement of such investigation.
(4) For purposes of this section, the term "insurer" means any residential property
insurer.
(5)(a) Within 90 days after an insurer receives notice of an initial, reopened, or
supplemental property insurance claim from a policyholder, the insurer shall pay
