Florida 6-20 All-Lines Adjuster Practice Test: Florida law, Part 2

Correct answer: A. It must take compulsory action, such as suspending or revoking the license

Section 626.611(1), F.S., lists grounds for compulsory action: when DFS finds one, it shall require license reexamination or deny, suspend, revoke, or refuse to renew or continue the license or appointment (the reexamination option was added by ch. 2026-174). Paragraph (1)(f) covers an adjuster who materially misrepresents policy terms and coverage to effect settlement on less favorable terms than the contract provides. Section 626.621, F.S., lists the discretionary grounds. The same conduct is an unfair claim settlement practice under s. 626.9541(1)(i)2.

Reference: s. 626.611(1)(f), F.S., Grounds for compulsory refusal, suspension, or revocation

Correct answer: A. 72 hours

Section 319.30(3)(b), F.S., requires an insurer that pays a total loss on a motor vehicle or mobile home to obtain the title, notify the National Motor Vehicle Title Information System, and forward the title within 72 hours after receiving it. The 30-day figure is when an insurer that cannot obtain the title may apply for a salvage certificate or certificate of destruction after paying the claim.

Reference: s. 319.30(3)(b), F.S., Dismantling, destruction, change of identity of motor vehicle or mobile home; salvage

Correct answer: B. Within 14 days

Section 624.307(10)(b), F.S., requires anyone licensed by DFS or OIR to respond in writing or electronically within 14 days after receiving the division's written request, addressing the complaint's issues and including requested documents not protected by privilege. The division may impose penalties for failing to respond: up to $1,000 per violation for an individual licensee and up to $5,000 per violation for an entity.

Reference: s. 624.307(10)(b), F.S., General powers; duties (Division of Consumer Services)

Correct answer: D. Send a report to the DFS Division of Criminal Investigations

Section 626.989(6)(a), F.S., requires insurers, agents, and other licensees who know or believe a fraudulent insurance act is being or has been committed to send a report to the DFS Division of Criminal Investigations. Under s. 626.989(4)(c), a person who files a required report without malice is not civilly liable absent fraud or bad faith. Insurers must also maintain an anti-fraud unit and plan under s. 626.9891, F.S.

Reference: s. 626.989(4)(c) and (6)(a), F.S., Investigation by department; immunity for reporting

Correct answer: B. The claimant presenting the claim

The code of ethics in rule 69B-220.201(3), F.A.C., opens by stating that adjusting claims engages the public trust and that an adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster's own interests in every instance. The rule binds company employee, independent, and public adjusters, including apprentice and emergency licensees, and any breach is an unfair claims settlement practice.

Reference: Rule 69B-220.201(1)-(3), F.A.C., Ethical Requirements for All Adjusters

Correct answer: A. She may not negotiate or settle without his attorney's consent

Rule 69B-220.201(3)(g), F.A.C., prohibits an adjuster from negotiating or effecting settlement, directly or indirectly, with a third-party claimant the adjuster knows is represented by an attorney, except with the attorney's consent. Who starts the conversation does not matter, and there is no dollar threshold. Public adjusters cannot handle bodily injury claims anyway under s. 626.854(3), F.S.

Reference: Rule 69B-220.201(3)(g), F.A.C.

Correct answer: B. The insured's son who lives in the insured's household

Rule 69B-220.201(3)(g), F.A.C., states that the term third-party claimant does not include the insured or the insured's resident relatives, so the resident son falls outside it. The other three people are making claims against the insured, so an adjuster who knows any of them has a lawyer may not negotiate or settle with that person without the lawyer's consent.

Reference: Rule 69B-220.201(3)(g), F.A.C.

Correct answer: D. Telling her that hiring either one would be a waste of money

Rule 69B-220.201(3)(h), F.A.C., bars an adjuster from advising a claimant to refrain from seeking legal advice, or advising against retaining counsel or employing a public adjuster to protect the claimant's interest. Neutral information about those options is fine, and paragraph (3)(j) requires the adjuster not to knowingly fail to advise the claimant of claim options under the policy.

Reference: Rule 69B-220.201(3)(h) and (3)(j), F.A.C.

Correct answer: A. Wait until the insured is no longer in shock or serious distress

Rule 69B-220.201(3)(i), F.A.C., prohibits an adjuster from negotiating with or obtaining any statement from a claimant or witness who is, or would reasonably be expected to be, in shock or serious mental or emotional distress from the loss, and from concluding a settlement that would be disadvantageous to a claimant in that state. The statement should wait.

Reference: Rule 69B-220.201(3)(i), F.A.C.

Correct answer: B. It is a violation, because he has an undisclosed financial interest

Rule 69B-220.201(3)(a), F.A.C., forbids an adjuster from directly or indirectly referring or steering a claimant needing repairs or other services to anyone in whom the adjuster has an undisclosed financial interest, or from whom the adjuster expects compensation for the referral or resulting business. Reasonable pricing or the claimant's freedom of choice does not cure the undisclosed conflict.

Reference: Rule 69B-220.201(3)(a), F.A.C.

Correct answer: C. He should not undertake a claim beyond his current competence and knowledge

Rule 69B-220.201(3)(k), F.A.C., says an adjuster shall not undertake a claim when the adjuster is not currently competent and knowledgeable about the coverage terms, or when the claim otherwise exceeds current expertise. The all-lines license (s. 626.869, F.S.) authorizes adjusting all lines except life and annuities, but legal authority is not the same as competence.

Reference: Rule 69B-220.201(3)(k), F.A.C.; s. 626.869(1), F.S.

Correct answer: D. She may not act for the insurer against her former public adjuster clients

Rule 69B-220.201(3)(l), F.A.C., provides that no person may, as a company employee or independent adjuster, represent himself or herself or any insurer or independent adjusting firm against any person or entity the adjuster previously represented as a public adjuster. The rule has no exception for a new loss, internal disclosure, or the passage of time. Paragraph (4)(f) is the mirror rule for public adjusters.

Reference: Rule 69B-220.201(3)(l), F.A.C.

Correct answer: A. An electronic estimating program using itemized, per-unit local market prices

As amended in 2025, rule 69B-220.201(3)(m), F.A.C., requires an electronic estimating program that produces an itemized, per-unit estimate of equipment, materials, labor, and supplies using market prices for the relevant geographic area. Changing program prices or inputs is prohibited unless documented, with the modifying adjuster's name, and any change from a prior estimate must be explained. An insurer may still settle on the insured's contractor's quote.

Reference: Rule 69B-220.201(3)(m), F.A.C. (amended 4-21-25)

Correct answer: B. 48 hours

Section 626.854(14), F.S., requires a company employee adjuster, independent adjuster, attorney, investigator, or anyone else acting for the insurer to give at least 48 hours' notice to the insured or claimant, public adjuster, or legal representative before scheduling a meeting or onsite inspection. The insured may deny access if notice was not given, or may waive it. The rule applies to residential and condominium unit owner policies.

Reference: s. 626.854(14) and (19), F.S.

Correct answer: C. A document with the adjuster's name and state license number

Section 627.70131(3)(b), F.S., requires the licensed adjuster assigned to physically inspect the property to give the policyholder a printed or electronic document containing the adjuster's name and state adjuster license number. Under (3)(c), every later communication about the claim must also include the name and license number of the adjuster communicating, and subsection (4) requires the insurer to log each adjuster who communicates with the policyholder.

Reference: s. 627.70131(3)(b)-(c) and (4), F.S.

Correct answer: B. The adjuster appointment type he or she holds

Section 626.878(2), F.S., requires any licensed adjuster to identify himself or herself in any advertisement, solicitation, or written document according to the adjuster appointment type held, such as company employee, independent, or public adjuster apprentice. This tells the public whom the adjuster represents. Section 626.878(1) also requires every adjuster to subscribe to the DFS code of ethics.

Reference: s. 626.878(1)-(2), F.S.

Correct answer: A. 7 calendar days

Section 627.70131(1)(a), F.S., requires acknowledgment within 7 calendar days, unless payment is made within that time or factors beyond the insurer's control prevent it. A communication to the insurer's authorized representative counts as a communication to the insurer, and an oral acknowledgment must be noted and dated in the claim file. The deadline was 14 days before SB 2-A (2022).

Reference: s. 627.70131(1)(a), F.S.; ch. 2022-271, Laws of Florida

Correct answer: C. November 1

Section 627.70131(7)(a), F.S., requires a residential insurer to pay or deny an initial, reopened, or supplemental claim, or a portion of it, within 60 days after receiving notice. Counting 60 days from September 2 (28 days remaining in September, 31 in October, then 1 more) gives November 1. A late payment bears interest from the date the insurer received notice of the claim.

Reference: s. 627.70131(7)(a), F.S.

Correct answer: D. Begin investigating within 7 days and inspect within 30 days after receiving the proof of loss

Section 627.70131(3), F.S., requires the insurer to begin its investigation within 7 days after receiving proof-of-loss statements and, if the investigation involves a physical inspection, to conduct it within 30 days after receiving them. The 14-day start and 45-day inspection figures reflect older law; SB 2-A (2022) shortened both. Sixty days is the separate pay-or-deny deadline in subsection (7).

Reference: s. 627.70131(3)(a)-(b), F.S.; ch. 2022-271, Laws of Florida

Correct answer: A. Within 7 days after the estimate is generated

Section 627.70131(3)(e), F.S., requires the insurer to send the policyholder a copy of any detailed estimate of the amount of the loss within 7 days after the insurer's adjuster generates it, although a detailed estimate is not required when not reasonably necessary. If the insurer later pays less than its detailed estimate, subsection (7)(a) requires a written explanation of the difference.

Reference: s. 627.70131(3)(e) and (7)(a), F.S.

Correct answer: B. It is tolled until the insurer receives the requested information

Under s. 627.70131(8)(b), F.S., the section's requirements are tolled when the policyholder or representative fails to provide requested material claim information within 10 days after receiving the request, and tolling ends when the insurer receives the information. It applies only to requests sent at least 15 days before the pay-or-deny deadline, which a day-20 request meets. DFS mediation or policy ADR also tolls the deadlines.

Reference: s. 627.70131(8), F.S.

Correct answer: C. No, because the request was sent fewer than 15 days before the deadline

Tolling under s. 627.70131(8)(b), F.S., applies only to requests sent at least 15 days before the insurer must pay or deny under subsection (7). A request on day 50 leaves only 10 days before the day-60 deadline, so the insured's silence does not stop the clock. To rely on this tolling, the insurer needed to send its request by day 45.

Reference: s. 627.70131(8)(b), F.S.

Correct answer: D. The date the insurer received notice of the claim

Section 627.70131(7)(a), F.S., says late payments bear interest at the s. 55.03 rate and that interest begins to accrue from the date the insurer receives notice of the claim, not from the missed deadline. The insured chooses between this interest and any prejudgment interest, and the policy cannot waive it. A violation breaches the insurance code but cannot be the sole basis for a private lawsuit.

Reference: s. 627.70131(7)(a), F.S.

Correct answer: A. A structure claim on a 9,500 square foot office building in Ocala

For subsection (7), s. 627.70131, F.S., defines a claim to include residential coverage, commercial structure or contents claims if the insured structure is 10,000 square feet or less, and commercial tenant contents claims if the premises are 10,000 square feet or less. It excludes policies covering nonresidential commercial structures or contents in more than one state. Only the 9,500 square foot building fits.

Reference: s. 627.70131(7)(b)-(c), F.S.

Correct answer: C. 14 days

Section 627.7142, F.S., requires insurers to provide the Homeowner Claims Bill of Rights within 14 days after receiving an initial communication about a personal lines residential claim. It summarizes rights such as acknowledgment within 7 days, a copy of any detailed estimate within 7 days, a pay-or-deny decision within 60 days, and free DFS mediation. It does not create a civil cause of action.

Reference: s. 627.7142, F.S., Homeowner Claims Bill of Rights