1
Florida 3-20 Public Adjusters State Exam (Set 1) Questions
with Answers (100% Correct Answers)
The insurer and insured agree to a specific value of insured item —ANS: Agreed
Value Policies
Someone who has care, custody or control of another's property —ANS: Bailee
Claim filed by policy holder against his _ —ANS: 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 —ANS: 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 —ANS:
Moral Hazard
Used to provide temporary insurance coverage until an insurance policy can be written
—ANS: Binder
© 2025 All rights reserved
,2
Required by lenders to guarantee that outstanding loans against a job are paid upon
completion —ANS: Completion Bonds
The section of an insurance policy identifying the insured, endorsements, coverages,
limits, and premiums —ANS: Declarations
Policyholder cannot transfer the policy to someone else without written permission
from their insurance company —ANS: Assignment
An instance, behavior or environment that increases the likelihood of a loss on an
insured item —ANS: Hazard
Actual cause or source of an incidence of destruction, injury, or loss —ANS: Peril
An insurance company organized and domiciled outside the US —ANS: Alien
When there is an unbroken chain of events between an occurrence and a loss, then the
loss is part of the original occurrence —ANS: Proximate Cause
Is proximate cause of all subsequent damages —ANS: Original Occurance
An individual who contracts with an adjusting firm as an independent contractor and
handles claims for the insurance companies —ANS: Independent Adjuster
© 2025 All rights reserved
, 3
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 —
ANS: Estoppel
Operate for profit, collect premiums, reserve a portion of premiums to pay claims —
ANS: Commercial Insurers
Any person who investigates or adjusts losses on behalf of either an insurer or a self-
insured —ANS: Independent Adjuster
The result of an insured's tort or wrongdoing. Consequences of a loss or amount or
type of losses suffered —ANS: Damages
Requires the insured to insure the named property for a specific amount of insurance
as required by the insurance company —ANS: Agreed Value
Physical harm to tangible property caused by peril (loss to property or person in which
a covered peril is the proximate cause of damage or destruction) —ANS: Direct loss
The entity that is the "recipient" to the Principal —ANS: Obligee
Insurance contracts are written on a take it or leave it basis to the policy owner. —
ANS: Adhesion
© 2025 All rights reserved
Florida 3-20 Public Adjusters State Exam (Set 1) Questions
with Answers (100% Correct Answers)
The insurer and insured agree to a specific value of insured item —ANS: Agreed
Value Policies
Someone who has care, custody or control of another's property —ANS: Bailee
Claim filed by policy holder against his _ —ANS: 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 —ANS: 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 —ANS:
Moral Hazard
Used to provide temporary insurance coverage until an insurance policy can be written
—ANS: Binder
© 2025 All rights reserved
,2
Required by lenders to guarantee that outstanding loans against a job are paid upon
completion —ANS: Completion Bonds
The section of an insurance policy identifying the insured, endorsements, coverages,
limits, and premiums —ANS: Declarations
Policyholder cannot transfer the policy to someone else without written permission
from their insurance company —ANS: Assignment
An instance, behavior or environment that increases the likelihood of a loss on an
insured item —ANS: Hazard
Actual cause or source of an incidence of destruction, injury, or loss —ANS: Peril
An insurance company organized and domiciled outside the US —ANS: Alien
When there is an unbroken chain of events between an occurrence and a loss, then the
loss is part of the original occurrence —ANS: Proximate Cause
Is proximate cause of all subsequent damages —ANS: Original Occurance
An individual who contracts with an adjusting firm as an independent contractor and
handles claims for the insurance companies —ANS: Independent Adjuster
© 2025 All rights reserved
, 3
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 —
ANS: Estoppel
Operate for profit, collect premiums, reserve a portion of premiums to pay claims —
ANS: Commercial Insurers
Any person who investigates or adjusts losses on behalf of either an insurer or a self-
insured —ANS: Independent Adjuster
The result of an insured's tort or wrongdoing. Consequences of a loss or amount or
type of losses suffered —ANS: Damages
Requires the insured to insure the named property for a specific amount of insurance
as required by the insurance company —ANS: Agreed Value
Physical harm to tangible property caused by peril (loss to property or person in which
a covered peril is the proximate cause of damage or destruction) —ANS: Direct loss
The entity that is the "recipient" to the Principal —ANS: Obligee
Insurance contracts are written on a take it or leave it basis to the policy owner. —
ANS: Adhesion
© 2025 All rights reserved
