Florida 6-20 Adjuster Practice Test
FL 6-20 Adjuster Insurance Concepts & Contracts Practice Questions
Insurance Concepts & Contracts makes up 4 of every 50 questions on a Tigertest FL 6-20 Adjuster practice test. Here are 10 of the 16 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the Florida all-lines adjuster content outline effective January 2026. Original questions; 50 per test, weighted like the real 100-question exam. Not affiliated with the Florida Department of Financial Services or Pearson VUE.
1. A Florida homeowners policy has been in force for 40 days. To cancel it for a reason other than nonpayment, the insurer must give at least:
- A.120 days' notice
- B.20 days' notice
- C.10 days' notice
- D.45 days' notice
Answer: B. s. 627.4133(2)(b) allows cancellation of a residential property policy in force 90 days or less, for reasons other than nonpayment, with at least 20 days' written notice; nonpayment takes 10 days and longer-running policies 120 days.
2. Because a property policy is a personal contract, the insured generally may not:
- A.Ask for an endorsement
- B.Add a mortgagee later
- C.Cancel it before the policy expires
- D.Assign it without the insurer's OK
Answer: D. The insurer chose to insure a particular person, not just the property, so a policy cannot be assigned before a loss without the insurer's written consent.
3. An insurance contract is called aleatory because:
- A.The amounts exchanged can be unequal
- B.It must be put in writing
- C.Only one party makes a binding promise
- D.One party writes every term
Answer: A. In an aleatory contract the values exchanged depend on chance: a small premium may buy a large payment, or no payment at all. A promise by one party only is a unilateral contract.
4. An adjuster notes that a homeowner has filed three small water claims in two years. This describes the homeowner's loss:
- A.Exposure
- B.Retention
- C.Frequency
- D.Severity
Answer: C. Frequency is how often losses happen; severity is how large they are. Underwriters and adjusters watch both.
5. Under Florida law, a claim for more damage from the same peril the insurer has already adjusted is a:
- A.New initial claim
- B.Subrogation claim
- C.Supplemental claim
- D.Reopened claim
Answer: C. s. 627.70132(1) defines a supplemental claim as one for additional loss from the same peril already adjusted; a reopened claim is a closed claim reopened for more costs on damage already disclosed.
6. Which of these risks is insurable?
- A.A house fire
- B.A losing lottery ticket
- C.A failed new business
- D.A fall in share prices
Answer: A. Insurers cover pure risks, where the only outcomes are loss or no loss. Shares, lotteries and ventures are speculative risks that can also produce a gain.
7. In insurance, a hazard is a condition that:
- A.Moves risk to another party
- B.Directly causes the loss
- C.Measures the loss's size
- D.Raises the chance of loss
Answer: D. A hazard, such as oily rags in a garage, increases the likelihood or severity of a loss. The peril is the cause itself, such as fire.
8. A Florida residential property insurer must give the policyholder the Homeowner Claims Bill of Rights within how long after the first communication about a claim?
- A.60 days
- B.14 days
- C.7 days
- D.30 days
Answer: B. s. 627.7142 requires the Homeowner Claims Bill of Rights within 14 days after the insurer receives an initial communication about a claim; it summarizes existing Florida claim rights.
9. Which coverage departs from the principle of indemnity because it can pay more than the property's actual cash value?
- A.Pro rata other insurance
- B.Replacement cost coverage
- C.Actual cash value coverage
- D.A coinsurance clause
Answer: B. Replacement cost pays to replace with new without deduction for depreciation, which can leave the insured better off than before. ACV, coinsurance and pro rata clauses all keep payment at or below indemnity.
10. A reciprocal insurance exchange is managed for its subscribers by a(n):
- A.Surplus lines broker
- B.Mutual holding company
- C.Board of stockholders
- D.Attorney-in-fact
Answer: D. In a reciprocal, subscribers insure one another, and an attorney-in-fact runs the exchange for them under a power of attorney.
Practice all 16 insurance concepts & contracts questions, and the rest of the 200-question bank, in the free FL 6-20 Adjuster training sets. Questions you miss come back until you have mastered them.
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