USAA Licensing Exam Questions & 100%
Correct Answers | Latest Update | Graded
A+
Law of Large numbers
➹➹➹: Mathematical principle used by insurers to predict losses to charge the
appropriate premiums
Insurable Interest
➹➹➹: Proof that someone stands to lose financially if a loss occurs; must exist at the
time of the loss in property and casualty insurance
Risk
➹➹➹: Chance of loss; uncertainty of loss
Speculative Risk
➹➹➹: Involves the simultaneous chance of gain or loss: is not insurable
Pure Risk
➹➹➹: a risk that presents the chance of loss but no opportunity for gain (insurable)
,What are two examples of speculative risk?
➹➹➹: Gambling Investing
Consideration
➹➹➹: An exchange of value between parties to a contract
What is Estopple?
➹➹➹: When an agent tells an insured/makes the statement there is coverage for a loss
when there is no such coverage, then the insurer is prevented from denying the claim
as a result of what precedent?
Material Misrepresentation
➹➹➹: Insured or prospect giving incorrect material information to the insurer, this voids
coverage
Warranty
➹➹➹: A written condition in the policy that must be true at the time of the loss
Unfair Claim Settlement
➹➹➹: An adjuster intentionally lowballs the claim settlement by offering less than the
amount owed to the insured
,Unfair Claim Settlement Practices Act
➹➹➹: An Agent collects a premium for a policy, but does not send it to the companyand
allows a policy to be canceled
Unfair Claims Settlement Practices Act
➹➹➹: The insurance company fails to adopt reasonable standards for processing
claims
Unfair Claim Settlement
➹➹➹: If an adjuster were to deny a claim without conducting a reasonable investigation.
This would be an example of what type of claim settlement violation?
Supplemental Coverages
➹➹➹: The insurance company defends the insured for a suit arising out of a covered
claim
An unfair claims settlement practice.
➹➹➹: If an adjuster were to deny a claim without providing the policyholder with a
reasonable explanation for the denial, this would be an example of what type of claims
settlement practice?
An unfair claims settlement practice
, ➹➹➹: If the adjuster tells the insured that he has no coverage under a policy when the
coverage really exists, this would be an example of what type of claims settlement
practice?
What hazards does Standard Fire Protection cover?
➹➹➹: (FLI)Fire, Lightning, Internal Explosions
What hazards does Name Peril "Basic" Cover?
➹➹➹: (FLI)+ W-Wind
C- Civil Commotion S- Smoke
H- Hail
A- Aircraft
V- Vehicle not owned by the insuredV- Volcano activity
E- ExplosionR- Riot
M- Malicious Mischief
What hazards are covered under "Named Peril Broad" coverage?
➹➹➹: (FLI+WCSHAVVERM) &
B- Burglary Damage
I- Ice/Sleet/Snow G- Glass Coverage
A- Accidental Discharge/OverflowF- Falling Objects
F- Freezing PlumingE- Electric Current
C- Collapse CoverageT- Tearing Appart
Correct Answers | Latest Update | Graded
A+
Law of Large numbers
➹➹➹: Mathematical principle used by insurers to predict losses to charge the
appropriate premiums
Insurable Interest
➹➹➹: Proof that someone stands to lose financially if a loss occurs; must exist at the
time of the loss in property and casualty insurance
Risk
➹➹➹: Chance of loss; uncertainty of loss
Speculative Risk
➹➹➹: Involves the simultaneous chance of gain or loss: is not insurable
Pure Risk
➹➹➹: a risk that presents the chance of loss but no opportunity for gain (insurable)
,What are two examples of speculative risk?
➹➹➹: Gambling Investing
Consideration
➹➹➹: An exchange of value between parties to a contract
What is Estopple?
➹➹➹: When an agent tells an insured/makes the statement there is coverage for a loss
when there is no such coverage, then the insurer is prevented from denying the claim
as a result of what precedent?
Material Misrepresentation
➹➹➹: Insured or prospect giving incorrect material information to the insurer, this voids
coverage
Warranty
➹➹➹: A written condition in the policy that must be true at the time of the loss
Unfair Claim Settlement
➹➹➹: An adjuster intentionally lowballs the claim settlement by offering less than the
amount owed to the insured
,Unfair Claim Settlement Practices Act
➹➹➹: An Agent collects a premium for a policy, but does not send it to the companyand
allows a policy to be canceled
Unfair Claims Settlement Practices Act
➹➹➹: The insurance company fails to adopt reasonable standards for processing
claims
Unfair Claim Settlement
➹➹➹: If an adjuster were to deny a claim without conducting a reasonable investigation.
This would be an example of what type of claim settlement violation?
Supplemental Coverages
➹➹➹: The insurance company defends the insured for a suit arising out of a covered
claim
An unfair claims settlement practice.
➹➹➹: If an adjuster were to deny a claim without providing the policyholder with a
reasonable explanation for the denial, this would be an example of what type of claims
settlement practice?
An unfair claims settlement practice
, ➹➹➹: If the adjuster tells the insured that he has no coverage under a policy when the
coverage really exists, this would be an example of what type of claims settlement
practice?
What hazards does Standard Fire Protection cover?
➹➹➹: (FLI)Fire, Lightning, Internal Explosions
What hazards does Name Peril "Basic" Cover?
➹➹➹: (FLI)+ W-Wind
C- Civil Commotion S- Smoke
H- Hail
A- Aircraft
V- Vehicle not owned by the insuredV- Volcano activity
E- ExplosionR- Riot
M- Malicious Mischief
What hazards are covered under "Named Peril Broad" coverage?
➹➹➹: (FLI+WCSHAVVERM) &
B- Burglary Damage
I- Ice/Sleet/Snow G- Glass Coverage
A- Accidental Discharge/OverflowF- Falling Objects
F- Freezing PlumingE- Electric Current
C- Collapse CoverageT- Tearing Appart
