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FLORIDA ALL LINES ADJUSTER PRACTICE QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025
- What is the primary purpose of the Florida Insurance Code? A. To set tax rates for insurance companies B. To protect the public and ensure fair insurance practices C. To increase revenue for the Department of Insurance D. To license insurance companies only The Florida Insurance Code exists to protect consumers and maintain the integrity of the insurance industry through fair practices and regulation.
- Which of the following is NOT considered an "adjuster" under Florida law? A. Company adjuster B. Public adjuster C. Underwriting agent D. Independent adjuster An underwriting agent is involved in evaluating risks and issuing policies, not handling claims, which is the adjuster's role.
- What is the minimum bond amount required for a public adjuster in Florida?
A. $25,
B. $50,
C. $75,
D. $10,
Florida law mandates that public adjusters post a $50,000 surety bond as a condition of licensure to ensure financial responsibility.
- How long must adjusters maintain claim files and supporting documentation? A. 1 year B. 2 years C. 3 years D. 5 years Florida statutes require adjusters to retain records for five years after the claim is closed to comply with audits and legal inquiries.
- When must a notice of claim be acknowledged under the Florida Claims Administration Statute? A. Within 30 days B. Within 10 business days C. Within 14 calendar days D. Immediately Florida law requires insurers or adjusters to acknowledge a claim within 14 calendar days of receipt.
- What is the statute of limitations for filing a property insurance claim in Florida?
C. Avoid litigation at all costs D. Deny as many claims as possible Adjusters must fairly investigate and settle claims in accordance with policy provisions and Florida law. 10.Who regulates insurance adjusters in Florida? A. Florida Department of Business and Professional Regulation B. Florida Bar Association C. Florida Department of Financial Services (DFS) D. U.S. Department of Labor The Florida DFS oversees licensure and conduct of insurance adjusters in the state. 11.A Florida All Lines Adjuster license allows you to adjust which of the following? A. Workers’ compensation only B. All types of property and casualty claims, including workers' comp C. Only auto and property D. Life and health An All Lines license permits adjusting any property and casualty claim in Florida. 12.Which of the following is considered a "first-party claim"? A. A liability claim filed by a third party B. A homeowner filing a claim for windstorm damage C. An injured party suing the policyholder D. A car accident caused by the insured
First-party claims are made by the policyholder directly under their own coverage. 13.What does the term "reservation of rights" mean? A. The policyholder denies coverage B. The claim is denied C. The insurer may not provide coverage while investigating D. The adjuster accepts full liability A reservation of rights letter informs the insured that coverage may be denied depending on findings. 14.What Florida statute governs Unfair Insurance Trade Practices? A. Chapter 440 B. Chapter 120 C. Chapter 626 Part IX D. Chapter 627 Chapter 626 Part IX outlines prohibited conduct and penalties for unfair trade practices. 15.Which of the following is an example of misrepresentation? A. Charging higher rates in high-risk areas B. Lying about coverage terms to sell a policy C. Offering discounts for multiple policies D. Canceling a policy after a claim Misrepresentation involves false statements about coverage, premiums, or terms.
C. Transfer of coverage D. Denial of liability Subrogation allows insurers to seek reimbursement from the responsible third party. 20.A public adjuster is hired by: A. The insurance company B. The policyholder C. The state D. An independent firm Public adjusters represent and advocate for the policyholder in claims. 21.What is the purpose of actual cash value (ACV) in a property loss? A. To replace the property with new items B. To pay the depreciated value of the property C. To pay the original purchase price D. To increase the policy limit ACV compensates the insured for the value of the property minus depreciation. 22.What does "proof of loss" refer to? A. A copy of the policy B. A sworn statement from the insured describing the loss C. The police report D. The claim denial notice Proof of loss is a formal statement verifying the details and value of a claim.
23.When must insurers pay or deny a claim after receiving proof of loss in Florida? A. Within 90 days B. Within 60 days C. Within 30 days D. Within 14 days Florida law requires insurers to pay or deny a claim within 30 days of receiving proof of loss. 24.Which of the following is considered an "unfair claims practice"? A. Denying a claim with documented cause B. Paying a claim within 30 days C. Failing to communicate claim updates D. Assigning multiple adjusters Failure to provide timely updates or communications violates Florida’s unfair claims handling statutes. 25.A “material misrepresentation” on an insurance application can lead to: A. Increased premiums B. Claim denial or policy cancellation C. Warning from the DFS D. A fine If an insured provides false information, the insurer may cancel the policy or deny future claims. 26.What is the maximum fee a public adjuster may charge on a claim resulting from a declared state emergency in Florida?
D. Pays after repairs Replacement cost pays the full cost of replacing damaged property without deducting for depreciation. 30.When an insurer issues a “reservation of rights” letter, what are they doing? A. Denying the claim B. Closing the claim C. Notifying that coverage may not apply depending on facts D. Offering a settlement This letter preserves the insurer’s right to deny coverage while continuing the investigation. 31.What document gives an adjuster the authority to handle claims? A. Insurance license B. Letter of authority or appointment C. Policy declaration page D. Adjuster manual A letter of authority or appointment from an insurer gives the adjuster power to act on their behalf. 32.What does a "loss reserve" represent? A. Deductible amount B. Estimated amount the insurer expects to pay C. Agent commission D. Insurance premium
A loss reserve is a liability account representing an estimate of the future claim payout. 33.What is “comparative negligence”? A. Only one party is liable B. The insurer pays regardless of fault C. Fault is shared among parties involved in the loss D. The policy is void In comparative negligence, each party may bear a portion of the fault and damages are split accordingly. 34.What is the purpose of salvage? A. Increase policy limits B. Allow the insurer to recover value from damaged property C. Let the insured keep the claim check D. Lower claim amounts Salvage allows insurers to recoup part of their payout by selling damaged goods. 35.In Florida, a “windstorm” includes which of the following? A. Fire B. Hail C. Hurricane D. Tornado only Florida statutes define windstorm to include hurricanes and associated wind- driven damage.
C. The policyholder is elderly D. The loss occurred during a weekend A claim can only be denied if the loss is not covered or excluded in the policy. 40.What is the meaning of “assignment of benefits” (AOB)? A. Adjuster reassigns file B. Insured changes policy C. Insured transfers claim rights to a third party (usually a contractor) D. Insurer delegates liability An AOB allows a third party to receive insurance payments directly, often used by contractors. 41.In a property claim, what is considered "concurrent causation"? A. Coverage for two cars B. Coverage for flood and fire C. Two or more perils combine to cause the same damage D. Simultaneous inspections Concurrent causation involves two causes contributing to one loss, complicating coverage decisions. 42.What is mediation in the Florida claims process? A. A trial B. A lawsuit C. A non-binding process to resolve claim disputes D. A deposition Mediation offers a non-binding, informal resolution method between insured and insurer.
43.What is considered an “indemnity” principle? A. To enrich the policyholder B. To restore the insured to their pre-loss condition C. To reduce future premiums D. To reward good claims history Indemnity ensures the insured is compensated fairly, without gain or loss. 44.What must an adjuster do before inspecting a property? A. Request a police report B. Obtain the insured’s permission C. Notify the governor D. Finalize the claim The adjuster must coordinate with the insured to schedule access for inspection. 45.What does “peril” mean in insurance? A. Coverage limit B. A cause of loss like fire, theft, or wind C. Deductible D. Liability dispute A peril is a specific risk or event causing damage to insured property. 46.What is a coverage “endorsement”? A. Policy cancellation B. Modification or addition to a policy C. Automatic renewal
50.What must an adjuster do if they receive a complaint from the Department of Financial Services? A. Ignore it B. Delay response for 90 days C. Respond promptly and fully cooperate D. Contact the claimant Adjusters are legally obligated to respond and cooperate with DFS investigations. 51.What is an appraisal clause used for in property insurance? A. To cancel a policy B. To resolve disputes over the value of a loss C. To determine coverage D. To file suit against the insurer The appraisal clause allows both parties to resolve disputes about the amount of loss through impartial appraisers. 52.Which of the following is an example of moral hazard? A. A home built in a flood zone B. A new roof C. An insured intentionally damaging their property for a claim D. A hailstorm forecast Moral hazard involves dishonesty or fraudulent behavior by the insured. 53.What is the effect of a coinsurance clause?
A. No change in coverage B. Deductible is waived C. Insured must carry a percentage of value to receive full payout D. Premiums increase Coinsurance requires the insured to carry a certain percentage of insurance, or else penalties apply at claim time. 54.When must an insurer respond to a Department of Financial Services (DFS) complaint? A. 60 days B. 30 days C. 20 days D. 10 days Florida law mandates a response to DFS inquiries or complaints within 20 days. 55.What does an “independent adjuster” do? A. Works for the claimant B. Works for DFS C. Handles claims on behalf of multiple insurers D. Works under an attorney Independent adjusters are contracted by insurers to adjust claims but are not employed by any one carrier. 56.What is a “non-waiver agreement”? A. A policy cancellation B. A document stating investigation doesn't admit liability C. A claim denial
60.What is the purpose of mediation under Florida Statute §627.7015? A. To determine negligence B. To resolve disputed property claims without litigation C. To adjust policy limits D. To deny claims Florida allows mediation to help resolve disputes over residential property claims without court. 61.An adjuster receives a claim where liability is uncertain. What should they do? A. Deny the claim B. Investigate thoroughly before determining liability C. Pay full amount immediately D. Refer it to another department only Adjusters must investigate claims to determine the facts and evaluate potential liability. 62.When can an insurer cancel a residential property policy mid-term? A. For any reason B. Only during hurricane season C. For material misrepresentation or unpaid premium D. Never Insurers can only cancel mid-term for specific reasons such as fraud or nonpayment. 63.Who must sign the proof of loss?
A. The insurer B. The insured C. The public adjuster D. The contractor The insured must verify the facts of the loss by signing the sworn proof of loss. 64.What is the maximum fine for willful violation of unfair claim practices? A. $5, B. $10, C. $100, D. $ Willful violations may result in fines up to $100,000 per violation. 65.What type of claim would a Florida All Lines Adjuster not handle? A. Wind damage B. Auto liability C. Workers’ compensation D. Life insurance All Lines Adjusters do not handle life insurance, which is regulated under a separate license. 66.When is an adjuster required to notify DFS of a change in address? A. Annually B. Only if license is renewed C. Within 30 days D. At the time of next claim Florida law requires licensees to report address changes within 30 days.
