5/13/25, 11:08 AM USAA Licensing Exam (2025) COMPREHENSIVE QUESTIONS AND VERIFIED DETAILED SOLUTIONS |COMPLETE SOL…
USAA Licensing Exam (2025) COMPREHENSIVE
QUESTIONS AND VERIFIED DETAILED
SOLUTIONS |COMPLETE SOLUTIONS |A+
GRADED |100% CORRECT!!
Save
Terms in this set (268)
Transfer of risk from one person or organization to
Insurance
an insurance company
The principle to restore the insured to the pre-loss
Indemnity
economic or financial condition.
Mathematical principle used by insurers to predict
Law of Large numbers
losses to charge the appropriate premiums
Proof that someone stands to lose financially if a
Insurable Interest loss occurs; must exist at the time of the loss in
property and casualty insurance
Temporary insurance contract; commits the
Binder
company to act as if a policy has been issued
Peril Cause of loss
Immediate actual physical damage to tangible
Direct Loss
property
Indirect loss Inability to use property as a result of a direct loss
Risk Chance of loss; uncertainty of loss
What are the two types Speculative and Pure
of risk?
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,5/13/25, 11:08 AM USAA Licensing Exam (2025) COMPREHENSIVE QUESTIONS AND VERIFIED DETAILED SOLUTIONS |COMPLETE SOL…
Involves the simultaneous chance of gain or loss: is
Speculative Risk
not insurable
a risk that presents the chance of loss but no
Pure Risk
opportunity for gain (insurable)
What are two examples Gambling
of speculative risk? Investing
What is an example of Car accident
your risk?
Physical hazards include Visible condition that increases the chance of loss
Morale Hazard Attitude of carelessness or indifference to loss
The insurance company (a.k.a. second party to the
Insurer
contract)
A party named on the declarations who is
Named Insured purchasing the insurance policy (a.k.a. first party to
the contract)
Who the insurer promises to protect in addition to
Insured
the named insured
The maximum amount that can be paid for a
Limit of Liability
covered loss
Consideration An exchange of value between parties to a contract
Waiver The voluntary relinquishment of a known right
When an agent tells an insured/makes the statement
there is coverage for a loss when there is no such
What is Estopple?
coverage, then the insurer is prevented from
denying the claim as a result of what precedent?
Insured or prospect deliberately withholding
Concealment material information from the insurer, this voids
coverage
Material Insured or prospect giving incorrect material
Misrepresentation information to the insurer, this voids coverage
A written condition in the policy that must be true at
Warranty
the time of the loss
https://quizlet.com/1043352917/usaa-licensing-exam-2025-comprehensive-questions-and-verified-detailed-solutions-complete-solutions-a-grade… 2/25
, 5/13/25, 11:08 AM USAA Licensing Exam (2025) COMPREHENSIVE QUESTIONS AND VERIFIED DETAILED SOLUTIONS |COMPLETE SOL…
Texas Department of In Texas, the insurance industry is regulated by the
Insurance
The (_______) is appointed by the governor and heads
Commissioner
the Texas Department of Insurance
According to the Texas Insurance Code, any person
who investigates or adjusts losses, or any person
Adjuster
who supervises the handling of claims must be
licensed as an (_______________)
A (_____) is on the payroll of an insurance company
A Staff Adjuster
and is paid a salary or by the hour
A (___) handles claims for one or more insurance
Independent Adjuster companies and receives a fee based on time and
expense.
A (__) works on behalf of the insured in negotiating a
Public Adjuster claim settlement. In Texas a (______) requires another
separate license called a "public adjusters license".
Persons marketing (Selling) insurance products are
Insurance Agent
called (___)
An insurer organized and domiciled outside the
Alien Insurer
United States is called an (_____)
An insurer organized, admitted, and writing
Domestic Insurer
insurance in Texas is called a (______)
An insurer domiciled outside the state where she
A Foreign Insurer
writes business is called a (____)
An adjuster intentionally lowballs the claim
Unfair Claim Settlement settlement by offering less than the amount owed to
the insured
An Agent collects a premium for a policy, but does
Unfair Claim Settlement
not send it to the company and allows a policy to
Practices Act
be canceled
Unfair Claims Settlement The insurance company fails to adopt reasonable
Practices Act standards for processing claims
https://quizlet.com/1043352917/usaa-licensing-exam-2025-comprehensive-questions-and-verified-detailed-solutions-complete-solutions-a-grade… 3/25
USAA Licensing Exam (2025) COMPREHENSIVE
QUESTIONS AND VERIFIED DETAILED
SOLUTIONS |COMPLETE SOLUTIONS |A+
GRADED |100% CORRECT!!
Save
Terms in this set (268)
Transfer of risk from one person or organization to
Insurance
an insurance company
The principle to restore the insured to the pre-loss
Indemnity
economic or financial condition.
Mathematical principle used by insurers to predict
Law of Large numbers
losses to charge the appropriate premiums
Proof that someone stands to lose financially if a
Insurable Interest loss occurs; must exist at the time of the loss in
property and casualty insurance
Temporary insurance contract; commits the
Binder
company to act as if a policy has been issued
Peril Cause of loss
Immediate actual physical damage to tangible
Direct Loss
property
Indirect loss Inability to use property as a result of a direct loss
Risk Chance of loss; uncertainty of loss
What are the two types Speculative and Pure
of risk?
https://quizlet.com/1043352917/usaa-licensing-exam-2025-comprehensive-questions-and-verified-detailed-solutions-complete-solutions-a-grade… 1/25
,5/13/25, 11:08 AM USAA Licensing Exam (2025) COMPREHENSIVE QUESTIONS AND VERIFIED DETAILED SOLUTIONS |COMPLETE SOL…
Involves the simultaneous chance of gain or loss: is
Speculative Risk
not insurable
a risk that presents the chance of loss but no
Pure Risk
opportunity for gain (insurable)
What are two examples Gambling
of speculative risk? Investing
What is an example of Car accident
your risk?
Physical hazards include Visible condition that increases the chance of loss
Morale Hazard Attitude of carelessness or indifference to loss
The insurance company (a.k.a. second party to the
Insurer
contract)
A party named on the declarations who is
Named Insured purchasing the insurance policy (a.k.a. first party to
the contract)
Who the insurer promises to protect in addition to
Insured
the named insured
The maximum amount that can be paid for a
Limit of Liability
covered loss
Consideration An exchange of value between parties to a contract
Waiver The voluntary relinquishment of a known right
When an agent tells an insured/makes the statement
there is coverage for a loss when there is no such
What is Estopple?
coverage, then the insurer is prevented from
denying the claim as a result of what precedent?
Insured or prospect deliberately withholding
Concealment material information from the insurer, this voids
coverage
Material Insured or prospect giving incorrect material
Misrepresentation information to the insurer, this voids coverage
A written condition in the policy that must be true at
Warranty
the time of the loss
https://quizlet.com/1043352917/usaa-licensing-exam-2025-comprehensive-questions-and-verified-detailed-solutions-complete-solutions-a-grade… 2/25
, 5/13/25, 11:08 AM USAA Licensing Exam (2025) COMPREHENSIVE QUESTIONS AND VERIFIED DETAILED SOLUTIONS |COMPLETE SOL…
Texas Department of In Texas, the insurance industry is regulated by the
Insurance
The (_______) is appointed by the governor and heads
Commissioner
the Texas Department of Insurance
According to the Texas Insurance Code, any person
who investigates or adjusts losses, or any person
Adjuster
who supervises the handling of claims must be
licensed as an (_______________)
A (_____) is on the payroll of an insurance company
A Staff Adjuster
and is paid a salary or by the hour
A (___) handles claims for one or more insurance
Independent Adjuster companies and receives a fee based on time and
expense.
A (__) works on behalf of the insured in negotiating a
Public Adjuster claim settlement. In Texas a (______) requires another
separate license called a "public adjusters license".
Persons marketing (Selling) insurance products are
Insurance Agent
called (___)
An insurer organized and domiciled outside the
Alien Insurer
United States is called an (_____)
An insurer organized, admitted, and writing
Domestic Insurer
insurance in Texas is called a (______)
An insurer domiciled outside the state where she
A Foreign Insurer
writes business is called a (____)
An adjuster intentionally lowballs the claim
Unfair Claim Settlement settlement by offering less than the amount owed to
the insured
An Agent collects a premium for a policy, but does
Unfair Claim Settlement
not send it to the company and allows a policy to
Practices Act
be canceled
Unfair Claims Settlement The insurance company fails to adopt reasonable
Practices Act standards for processing claims
https://quizlet.com/1043352917/usaa-licensing-exam-2025-comprehensive-questions-and-verified-detailed-solutions-complete-solutions-a-grade… 3/25
