Florida 6-20 All-Lines Adjuster Practice Test: Florida law, Part 3

Correct answer: B. September 28, 2026

Section 627.70132(2), F.S., bars an initial or reopened property claim unless notice is given within 1 year after the date of loss, and subsection (3) makes the date of loss for a hurricane the date of landfall. One year after September 28, 2025 is September 28, 2026. The 18-month limit (March 28, 2027) applies only to supplemental claims.

Reference: s. 627.70132(2)-(3), F.S., Notice of property insurance claim

Correct answer: C. October 10, 2026

For tornadoes and other weather events, s. 627.70132(3), F.S., makes the date of loss the date NOAA verifies the event. A supplemental claim, meaning additional loss from the same peril the insurer previously adjusted, is barred unless noticed within 18 months after the date of loss, so the deadline is October 10, 2026. April 10, 2026 would be the 1-year limit for an initial or reopened claim.

Reference: s. 627.70132(1)(b), (2) and (3), F.S.

Correct answer: B. A reopened claim, subject to the 1-year notice limit

Section 627.70132(1)(a), F.S., defines a reopened claim as one the insurer closed that is reopened at the insured's request for additional costs for loss or damage previously disclosed. Reopened claims share the 1-year limit with initial claims. A supplemental claim is for additional loss from the same peril the insurer previously adjusted, or costs incurred completing repairs under an open timely claim, and has an 18-month limit.

Reference: s. 627.70132(1)-(2), F.S.

Correct answer: C. The limits are tolled while the deployment materially affects her ability to file

Since 2023 (ch. 2023-172), s. 627.70132(2), F.S., tolls the claim, reopened claim, and supplemental claim notice limits during any term of deployment to a combat zone or combat support posting that materially affects a named insured servicemember's ability to file. The clock does not run while that deployment prevents her from filing.

Reference: s. 627.70132(2), F.S.; ch. 2023-172, Laws of Florida

Correct answer: D. Misrepresenting policy terms to settle for less than the policy provides

Section 626.9541(1)(i)2., F.S., makes a material misrepresentation to an insured or other interested person, made to effect settlement on less favorable terms than the policy provides, a stand-alone violation. The failures listed in subparagraph 3., such as not acknowledging communications, not promptly requesting needed information, or denying without reasonable investigation, are unfair practices when done with such frequency as to indicate a general business practice.

Reference: s. 626.9541(1)(i)2.-3., F.S., Unfair claim settlement practices

Correct answer: D. 30 days

Section 626.9541(1)(i)3.e., F.S., lists as an unfair practice, when done as a general business practice, failing to affirm or deny full or partial coverage (and, for partial coverage, the dollar amount or extent), or to provide a written statement that the claim is being investigated, within 30 days after proof-of-loss statements are completed and the insured makes a written request. The Homeowner Claims Bill of Rights repeats this right.

Reference: s. 626.9541(1)(i)3.e., F.S.

Correct answer: A. Explaining the reduction in detail and listing each change and who ordered it

Altering an adjuster's report is an unfair claim settlement practice under s. 626.9541(1)(i)3.j., F.S., unless the insurer gives a detailed explanation of any change that reduces the estimate and a detailed list of all changes and who ordered each, or retains every version identifying who made or ordered each change. Destroying the original or hiding the changes satisfies neither statutory alternative.

Reference: s. 626.9541(1)(i)3.j., F.S.

Correct answer: B. $350, paid entirely by the insurer

Section 627.7015(3), F.S., requires the insurer to bear all costs of conducting the mediation conference, and rule 69J-166.031(6)(a), F.A.C., sets the total at $350: $300 for the mediator and $50 for the administrator. A policyholder who fails to appear must pay for a rescheduled conference, but otherwise the program costs the policyholder nothing.

Reference: s. 627.7015(3), F.S.; Rule 69J-166.031(6)(a), F.A.C.

Correct answer: C. No, a dispute under $500 is not eligible unless both parties agree

Section 627.7015(9)(d), F.S., excludes from mediation any dispute in which the amount in controversy is less than $500, unless the parties agree to mediate a lesser amount. Other exclusions include suspected fraud, no coverage on agreed facts, denial for intentional material misrepresentation, and losses not timely noticed under s. 627.70132. Both personal lines and commercial residential claims are otherwise eligible.

Reference: s. 627.7015(9), F.S.; Rule 69J-166.031(2), F.A.C.

Correct answer: D. Rescind the settlement, because she is within 3 business days

Mediation under s. 627.7015(6)(a), F.S., is nonbinding, but once a written settlement is reached the policyholder has 3 business days to rescind it unless she has cashed or deposited a check or draft issued for the disputed matters. Wednesday, Thursday, and Friday are the 3 business days after a Tuesday settlement. If not rescinded, the settlement is binding and releases the claims presented.

Reference: s. 627.7015(6)(a), F.S.

Correct answer: A. A homeowner's dispute over the amount of covered wind damage

DFS mediation under s. 627.7015(1), F.S., is a nonadversarial, nonbinding process for claims under personal lines and commercial residential property policies, available before appraisal or litigation. The statute expressly excludes commercial coverages, private passenger motor vehicle coverages, and disputes about liability coverages in property policies. A claim becomes eligible once the insurer has paid or denied it under s. 627.70131(7) or elected to reinspect.

Reference: s. 627.7015(1)-(2), F.S.

Correct answer: B. Abrupt collapse, visible depression, foundation damage, home condemned and vacated

Under s. 627.706(2)(a), F.S., catastrophic ground cover collapse requires all four elements: abrupt collapse of the ground cover, a depression visible to the naked eye, structural damage to the covered building including the foundation, and the structure condemned and ordered vacated by the governmental agency. Settling or cracking alone does not qualify. Broader sinkhole loss coverage must be made available for an additional premium.

Reference: s. 627.706(1)-(2), F.S., Sinkhole insurance; catastrophic ground cover collapse

Correct answer: A. $2,500

When an insurer denies a sinkhole claim without testing, s. 627.707(4), F.S., lets the policyholder demand testing in writing within 60 days after receiving the denial. The policyholder pays 50% of the actual cost or $2,500, whichever is less. Half of $7,000 is $3,500, so he pays $2,500, and the insurer must reimburse him if its engineer or geologist certifies a sinkhole loss.

Reference: s. 627.707(4), F.S.

Correct answer: C. It is nonbinding, but mandatory once either party requests it

Section 627.7074, F.S., makes sinkhole neutral evaluation nonbinding but mandatory if requested by either party. The evaluator is a licensed engineer or professional geologist with sinkhole training, chosen from a DFS list (each side may strike two without cause), and the insurer pays the reasonable costs. Neutral evaluation supersedes s. 627.7015 mediation for these disputes but does not invalidate appraisal.

Reference: s. 627.7074, F.S., Alternative procedure for resolution of disputed sinkhole insurance claims

Correct answer: D. The umpire was employed by the insurer three years ago

Section 627.70151, F.S., limits umpire disqualification to four grounds: a family relationship within the third degree with a party or representative; prior professional representation of a party on the same claim or property; representing another person with materially adverse interests on a substantially related matter; or working as an employer or employee of a party within the preceding 5 years. Employment three years ago falls inside that window.

Reference: s. 627.70151, F.S., Appraisal; conflicts of interest

Correct answer: C. 60 days

Section 624.155(3), F.S., requires 60 days' written notice of the violation, on a DFS form, to DFS and the authorized insurer. No action lies if, within 60 days after the insurer receives the notice, it pays the damages or corrects the circumstances giving rise to the violation. For residential property claims, the notice may not be filed within 60 days after appraisal is invoked.

Reference: s. 624.155(3), F.S., Civil remedy

Correct answer: A. 10% of claim payments

Section 626.854(11)(b)1., F.S., caps public adjuster compensation at 10% of claim payments or settlements, excluding attorney fees and costs, for claims based on a Governor-declared emergency made during the year after the declaration. After that year, and for non-emergency claims, the cap is 20%. Fees can never be based on the deductible, and the rate cannot rise just because the claim is litigated.

Reference: s. 626.854(11)(b)-(e), F.S.

Correct answer: C. $8,000

For claims not tied to a Governor-declared emergency, s. 626.854(11)(b)2., F.S., caps the fee at 20% of claim payments, so 20% x $40,000 = $8,000. Paragraph (c) says claim payments do not include the deductible, so $8,400 (20% of $42,000) is wrong. The $4,000 and $4,200 figures apply the 10% emergency cap, which does not apply here.

Reference: s. 626.854(11)(b)2. and (11)(c), F.S.

Correct answer: B. $2,400

On a reopened or supplemental claim, s. 626.854(11)(a), F.S., bars any fee based on prior payments or settlements and limits compensation to 20% of the new money obtained after the contract. Twenty percent of $12,000 is $2,400. Charging on the earlier $30,000 ($6,000) or on the full $42,000 ($8,400) violates the statute. An emergency claim in its first year would be capped at 10%.

Reference: s. 626.854(11)(a), F.S.

Correct answer: B. $2,500

Section 626.854(11)(b)3., F.S., limits the fee to 1% on any coverage part where the insurer pays or commits in writing to pay at least the policy limit within 14 days after the loss or 10 days after the contract, whichever is later. The later date here is June 15, so the June 10 commitment qualifies: 1% of $250,000 is $2,500. A 0% cap applies only to payments or commitments made before the contract was signed.

Reference: s. 626.854(11)(b)3.-4., F.S.

Correct answer: C. November 4

For contracts based on a Governor-declared emergency, s. 626.854(7), F.S., allows cancellation within 30 days after the date of loss or 10 days after the contract is executed, whichever is longer. Thirty days after October 1 is October 31; 10 days after October 25 is November 4, the longer period. He may also cancel if the public adjuster provides no written estimate within 60 days of the contract.

Reference: s. 626.854(7) and (12), F.S.

Correct answer: A. Saturday at 10 a.m.

Section 626.854(5), F.S., allows a public adjuster to solicit an insured or claimant, directly or through others, only Monday through Saturday between 8 a.m. and 8 p.m. Saturday at 10 a.m. qualifies. Sunday solicitation is never allowed, and 8:30 p.m. and 7:30 a.m. fall outside the permitted hours. This limit applies to residential and condominium unit owner policies.

Reference: s. 626.854(5) and (19), F.S.

Correct answer: C. Within 7 days after execution

Section 626.8796(2), F.S., requires an unaltered copy of the executed contract to go to the insured at signing and to the insurer or its representative within 7 days after execution. The contract must be titled Public Adjuster Contract, use at least 12-point type, and show the fee percentage and fraud statement in 18-point bold. A noncompliant contract is invalid and unenforceable.

Reference: s. 626.8796(1)-(3) and (7), F.S.

Correct answer: B. No, merchandise worth over $25 may not be offered as an inducement

Section 626.854(10), F.S., bars public adjusters, apprentices, and anyone acting for them from giving or offering any article of merchandise worth more than $25 for advertising or as an inducement to sign a contract. Items worth $25 or less are not banned, so a total ban on promotional items overstates the rule. Subsection (9) separately bans loans or advances to clients.

Reference: s. 626.854(9)-(10), F.S.

Correct answer: C. Within 14 days

Chapter 2026-174 (SB 1452), effective June 26, 2026, added s. 626.854(24), F.S., requiring a public adjuster, apprentice, or public adjusting firm to respond with specific information to a written or electronic claim-status request within 14 days and to document the file. Rule 69B-220.201(4)(g), F.A.C., still says 30 days, but the newer statute controls.

Reference: s. 626.854(24), F.S.; ch. 2026-174, Laws of Florida