USAA LICENSING Final Exam Questions
and Answers Latest Updates 2025 Top
rated A+
Named Insured - ANSWER A party named on the declarations who is purchasing
the insurance policy (a.k.a. first party to the contract)
Insured - ANSWER Who the insurer promises to protect in addition to the
named insured
Limit of Liability - ANSWER The maximum amount that can be paid for a covered
loss
Consideration - ANSWER An exchange of value between parties to a contract
Waiver - ANSWER The voluntary relinquishment of a known right
What is Estopple? - ANSWER 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?
Concealment - ANSWER Insured or prospect deliberately withholding material
information from the insurer, this voids coverage
Material Misrepresentation - ANSWER Insured or prospect giving incorrect
material information to the insurer, this voids coverage
Warranty - ANSWER A written condition in the policy that must be true at the
time of the loss
Texas Department of Insurance - ANSWER In Texas, the insurance industry is
regulated by the
Commissioner - ANSWER The ( ) is appointed by the governor and heads
the Texas Department of Insurance
Adjuster - ANSWER According to the Texas Insurance Code, any person who
investigates or adjusts losses, or any person who supervises the handling of claims
must be licensed as an ( )
A Staff Adjuster - ANSWER A ( ) is on the payroll of an insurance company
and is paid a salary or by the hour
,Independent Adjuster - ANSWER A ( ) handles claims for one or more
insurance companies and receives a fee based on time and expense.
Public Adjuster - ANSWER A ( ) works on behalf of the insured in negotiating a
claim settlement. In Texas a ( ) requires another separate license called a
"public adjusters license".
Insurance Agent - ANSWER Persons marketing (Selling) insurance products are
called ( )
Alien Insurer - ANSWER An insurer organized and domiciled outside the United
States is called an ( )
Domestic Insurer - ANSWER An insurer organized, admitted, and writing
insurance in Texas is called a ( )
A Foreign Insurer - ANSWER An insurer domiciled outside the state where she
writes business is called a ( )
Unfair Claim Settlement - ANSWER An adjuster intentionally lowballs the claim
settlement by offering less than the amount owed to the insured
Unfair Claim Settlement Practices Act - ANSWER An Agent collects a premium
for a policy, but does not send it to the company and allows a policy to be canceled
Unfair Claims Settlement Practices Act - ANSWER The insurance company fails
to adopt reasonable standards for processing claims
Unfair Claim Settlement - ANSWER 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 - ANSWER The insurance company defends the insured
for a suit arising out of a covered claim
An unfair claims settlement practice. - ANSWER 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 - ANSWER 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?
15 days - ANSWER How many days does an adjust have to acknowledge the claim
,15 Business days - ANSWER How many days does an adjust have to accept or
reject the claim after he receives complete information?
, 5 calendar days - ANSWER How many days does an adjuster have to send the
check after he agrees to pay the claim?
What hazards does Standard Fire Protection cover? - ANSWER (FLI)Fire,
Lightning, Internal Explosions
What hazards does Name Peril "Basic" Cover? - ANSWER (FLI)+
W-Wind
C- Civil Commotion
S- Smoke
H- Hail
A- Aircraft
V- Vehicle not owned by the insured
V- Volcano activity
E- Explosion
R- Riot
M- Malicious Mischief
What hazards are covered under "Named Peril Broad" coverage? - ANSWER
(FLI+WCSHAVVERM) &
B- Burglary Damage
I- Ice/Sleet/Snow
G- Glass Coverage
A- Accidental Discharge/Overflow
F- Falling Objects
F- Freezing Pluming
E- Electric Current
C- Collapse Coverage
T- Tearing Appart
and Answers Latest Updates 2025 Top
rated A+
Named Insured - ANSWER A party named on the declarations who is purchasing
the insurance policy (a.k.a. first party to the contract)
Insured - ANSWER Who the insurer promises to protect in addition to the
named insured
Limit of Liability - ANSWER The maximum amount that can be paid for a covered
loss
Consideration - ANSWER An exchange of value between parties to a contract
Waiver - ANSWER The voluntary relinquishment of a known right
What is Estopple? - ANSWER 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?
Concealment - ANSWER Insured or prospect deliberately withholding material
information from the insurer, this voids coverage
Material Misrepresentation - ANSWER Insured or prospect giving incorrect
material information to the insurer, this voids coverage
Warranty - ANSWER A written condition in the policy that must be true at the
time of the loss
Texas Department of Insurance - ANSWER In Texas, the insurance industry is
regulated by the
Commissioner - ANSWER The ( ) is appointed by the governor and heads
the Texas Department of Insurance
Adjuster - ANSWER According to the Texas Insurance Code, any person who
investigates or adjusts losses, or any person who supervises the handling of claims
must be licensed as an ( )
A Staff Adjuster - ANSWER A ( ) is on the payroll of an insurance company
and is paid a salary or by the hour
,Independent Adjuster - ANSWER A ( ) handles claims for one or more
insurance companies and receives a fee based on time and expense.
Public Adjuster - ANSWER A ( ) works on behalf of the insured in negotiating a
claim settlement. In Texas a ( ) requires another separate license called a
"public adjusters license".
Insurance Agent - ANSWER Persons marketing (Selling) insurance products are
called ( )
Alien Insurer - ANSWER An insurer organized and domiciled outside the United
States is called an ( )
Domestic Insurer - ANSWER An insurer organized, admitted, and writing
insurance in Texas is called a ( )
A Foreign Insurer - ANSWER An insurer domiciled outside the state where she
writes business is called a ( )
Unfair Claim Settlement - ANSWER An adjuster intentionally lowballs the claim
settlement by offering less than the amount owed to the insured
Unfair Claim Settlement Practices Act - ANSWER An Agent collects a premium
for a policy, but does not send it to the company and allows a policy to be canceled
Unfair Claims Settlement Practices Act - ANSWER The insurance company fails
to adopt reasonable standards for processing claims
Unfair Claim Settlement - ANSWER 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 - ANSWER The insurance company defends the insured
for a suit arising out of a covered claim
An unfair claims settlement practice. - ANSWER 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 - ANSWER 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?
15 days - ANSWER How many days does an adjust have to acknowledge the claim
,15 Business days - ANSWER How many days does an adjust have to accept or
reject the claim after he receives complete information?
, 5 calendar days - ANSWER How many days does an adjuster have to send the
check after he agrees to pay the claim?
What hazards does Standard Fire Protection cover? - ANSWER (FLI)Fire,
Lightning, Internal Explosions
What hazards does Name Peril "Basic" Cover? - ANSWER (FLI)+
W-Wind
C- Civil Commotion
S- Smoke
H- Hail
A- Aircraft
V- Vehicle not owned by the insured
V- Volcano activity
E- Explosion
R- Riot
M- Malicious Mischief
What hazards are covered under "Named Peril Broad" coverage? - ANSWER
(FLI+WCSHAVVERM) &
B- Burglary Damage
I- Ice/Sleet/Snow
G- Glass Coverage
A- Accidental Discharge/Overflow
F- Falling Objects
F- Freezing Pluming
E- Electric Current
C- Collapse Coverage
T- Tearing Appart
