Florida 6-20 All-Lines Adjuster Practice Test: Florida law, Part 5

Correct answer: C. No, a roof under 15 years old cannot be the sole reason for nonrenewal

Section 627.7011(5)(b), F.S., prohibits an insurer from refusing to issue or renew a homeowner's policy on a residential structure with a roof less than 15 years old solely because of the roof's age. Roof age runs from the last date 100% of the roof surface was built or replaced to code. Roofs 15 years or older are handled under paragraph (5)(c), which allows an inspection by an authorized inspector.

Reference: s. 627.7011(5)(b) and (d), F.S.

Correct answer: B. The insurer may not refuse to renew solely because of the roof's age

For a roof at least 15 years old, s. 627.7011(5)(c), F.S., requires the insurer to let the homeowner obtain an inspection by an authorized inspector, at the homeowner's expense, before requiring replacement. If the inspection shows 5 or more years of useful life left, the insurer may not refuse to issue or renew solely because of roof age. Authorized inspectors include insurer-approved home inspectors, building code inspectors, contractors (including roofing contractors), engineers, and architects.

Reference: s. 627.7011(5)(a) and (c), F.S.

Correct answer: D. Only the amount of the loss caused by wind, the covered peril

Florida's valued policy law, s. 627.702(1)(a), F.S., makes the insurer liable for the full policy amount when a covered peril causes a total loss of a building. Paragraph (1)(b) adds that when a loss is caused partly by a covered peril and partly by a noncovered peril, the insurer is liable only for the loss caused by the covered peril, unless the covered peril alone would have caused the total loss.

Reference: s. 627.702(1), F.S., Valued policy law

Correct answer: A. Personal property inside a home destroyed by fire

Section 627.702(5), F.S., states that the valued policy law does not apply to personal property, except mobile homes and manufactured buildings, or to appurtenant or other structures without a dollar amount stated specifically for them. Under subsection (3) it also does not apply to undisclosed concurrent insurance, blanket coverage on multiple buildings, or builder's risk policies. Buildings, mobile homes, and manufactured buildings are covered.

Reference: s. 627.702(3) and (5), F.S.

Correct answer: B. 25% of the dwelling limit

Section 627.7011(1)-(2), F.S., requires homeowners insurers to offer law and ordinance coverage limited to 25% or 50% of the dwelling limit. Unless the insurer obtains the policyholder's written refusal on an OIR-approved form, the policy is deemed to include law and ordinance coverage at 25% of the dwelling limit. Policy documents must also carry an 18-point bold notice urging the insured to consider this coverage.

Reference: s. 627.7011(1), (2) and (4)(a), F.S.

Correct answer: C. $75,000

Law and ordinance coverage limited to 25% of the dwelling limit pays up to 25% x $300,000 = $75,000. Section 627.7011(1)(b), F.S., limits the coverage to repairs of the damaged portion unless total damage exceeds 50% of the structure's replacement cost; $180,000 is 60%, so whole-house upgrades qualify. The $90,000 cost exceeds the $75,000 limit, and $45,000 wrongly applies 25% to the loss instead of the dwelling limit.

Reference: s. 627.7011(1)(b) and (2), F.S.

Correct answer: B. May 2, 2027

Section 627.70132(4), F.S., requires notice of a loss assessment claim by the later of 1 year after the date of loss (September 1, 2026) or 90 days after the association votes to levy the assessment (May 2, 2027), and never later than 3 years after the loss (September 1, 2028). May 2, 2027 is the later date and falls inside the 3-year cap. The date of loss is the covered event that created the need for the assessment.

Reference: s. 627.70132(4), F.S.; ch. 2024-139, Laws of Florida

Correct answer: C. None, since his deductible already applied to the same event

Section 627.714(1), F.S., requires unit owner policies to include at least $2,000 of loss assessment coverage for assessments from the same direct loss, with a deductible of no more than $250 per direct property loss. If a deductible was or will be applied to other property loss the unit owner sustained from the same direct loss, no deductible applies to the loss assessment coverage, so his $1,800 assessment is paid without one.

Reference: s. 627.714(1), F.S., Residential condominium unit owner coverage

Correct answer: D. No, her signed rejection applies on behalf of all insureds

Section 627.727(1), F.S., requires UM coverage with bodily injury liability coverage unless a named insured rejects it in writing on behalf of all insureds. When the OIR-approved rejection form is signed by a named insured, it is conclusively presumed to be an informed, knowing rejection on behalf of all insureds, so her husband has no UM coverage under this policy. The insurer must notify the named insured of UM options at least annually.

Reference: s. 627.727(1), F.S.

Correct answer: A. $100,000 per person and $300,000 per accident

Under s. 627.727(1)-(2), F.S., UM coverage must be included with bodily injury liability coverage, and its limits may not be less than the bodily injury limits purchased unless the named insured selects lower limits or rejects the coverage in writing on the OIR-approved form. With no signed form, his UM limits match his $100,000/$300,000 bodily injury limits. The $10,000/$20,000 figures are Florida's financial responsibility amounts.

Reference: s. 627.727(1)-(2), F.S.

Correct answer: C. 30 days

Section 440.185(1), F.S., requires an injured employee to advise the employer within 30 days after the date of the injury or its initial manifestation. Failure bars a claim unless an exception applies, such as the employer's actual knowledge of the injury. Once the employer has actual knowledge, s. 440.185(2) gives it 7 days to report the injury to its carrier.

Reference: s. 440.185(1), F.S., Notice of injury or death; reports

Correct answer: A. 7 days after actual knowledge

Section 440.185(2), F.S., requires the employer to report an injury or death to its carrier within 7 days after actual knowledge, in a format the department prescribes, and to give the employee a copy. The carrier must file the information with the department within 14 days after the employer's receipt of the report form, and under subsection (3) must send the injured worker an informational brochure within 3 business days after learning of the injury.

Reference: s. 440.185(2)-(3), F.S.

Correct answer: B. No, because the employer had actual knowledge of the injury

Section 440.185(1), F.S., generally bars a petition if the employee fails to advise the employer within 30 days after the injury, but lists exceptions: the employer or its agent had actual knowledge of the injury; the cause could not be identified without a medical opinion and notice came within 30 days after that opinion; the employer failed to post the required notice; or exceptional circumstances. Her manager saw the fall, so the employer had actual knowledge.

Reference: s. 440.185(1)(a)-(d), F.S.

Correct answer: C. It expires automatically on the 91st day after the departure

Section 626.8695, F.S., requires each adjusting firm location to designate a licensed and appointed primary adjuster, report any change within 30 days, and have a primary adjuster providing services at all times. If the designated primary adjuster ends the affiliation and the firm fails to designate another within 90 days, the firm license automatically expires on the 91st day after the affiliation ended.

Reference: s. 626.8695(1), (2) and (8), F.S., Primary adjuster

Correct answer: D. No, the firm checked status within 5 working days and dismissed him at once

Section 626.8695(5), F.S., lets DFS suspend or revoke a primary adjuster's license if the firm employs someone whose license is denied, suspended, or revoked. Subsection (9) gives a safe harbor: a firm may check licensure status by submitting an appointment request within 5 working days after hiring, and if DFS reports a suspended, revoked, or denied license, the primary adjuster is not disciplined when the person is immediately dismissed.

Reference: s. 626.8695(5) and (9), F.S.

Correct answer: A. A flyer left at homes in the damaged neighborhood

Section 626.854(8)(b), F.S., requires the disclaimer, in bold capital letters no smaller than the body text, on all written advertisements by a public adjuster, and defines written advertisements as newspapers, magazines, flyers, and bulk mailers. Standard-size business cards are expressly excused. Rule 69B-220.051(3)(b), F.A.C., also requires every public adjuster advertisement to show the adjuster's full name and license number.

Reference: s. 626.854(8)(b), F.S.; Rule 69B-220.051(3)(b), F.A.C.

Correct answer: B. 1 year

Section 626.865(2), F.S., requires the $50,000 bond to be in favor of DFS, conditioned on faithful performance, and to remain in effect for 1 year after the license expires or is terminated, so consumers harmed by fraud or unfair practices can still recover. The surety may not terminate the bond without at least 30 days' written notice to the licensee and DFS. Public adjuster apprentices carry the same bond and 1-year tail under s. 626.8651, F.S.

Reference: s. 626.865(2), F.S.; s. 626.8651(1), F.S.

Correct answer: C. Submit new fingerprints, because his results were valid for 1 year

DFS states that fingerprint results are valid for only 1 year for applicants who do not currently hold a valid Florida license, so Darius must be fingerprinted again through DFS's vendor; DFS does not accept results from other vendors or states. The 48-month rule applies to a current licensee seeking an additional license. Under s. 626.171(4), F.S., DFS may not approve an application without fingerprints.

Reference: Florida DFS, Fingerprinting Information; s. 626.171(4), F.S.

Correct answer: B. A passing score is valid for 1 year, with at most 5 attempts in 12 months

The Pearson VUE handbook states that a passing score is valid for 1 year from the date earned; a candidate who does not complete licensing within that year must retake and pass the examination. Candidates are limited to five attempts at the same examination in a 12-month period, and the passing score is 70%. A license also requires an approved application, fees, and fingerprints under s. 626.171, F.S.

Reference: Pearson VUE, Florida Insurance Licensing Candidate Handbook (#121000); s. 626.171, F.S.

Correct answer: D. She forfeits it, because changes require at least 48 hours' notice

The handbook requires candidates to change or cancel a reservation online at least 48 hours before the examination; otherwise the fee, currently $44, is forfeited, and the candidate is liable for it once a reservation is made. Thursday at noon is only 21 hours before her appointment. Excused absences are limited to listed emergencies requested within 14 days. Section 624.501(13), F.S., sets the exam fee at the cost of the examination.

Reference: Pearson VUE, Florida Insurance Licensing Candidate Handbook (#121000), Change/Cancel Policy