USAA LICENSING EXAM QUESTIONS AND ANSWERS
GUARANTEE A+ 2025/2026
✔✔Unfair Claim Settlement Practices Act - ✔✔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 - ✔✔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?
✔✔15 days - ✔✔How many days does an adjust have to acknowledge the claim
✔✔15 Business days - ✔✔How many days does an adjust have to accept or reject the
claim after he receives complete information?
✔✔5 calendar days - ✔✔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? - ✔✔(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 insured
V- Volcano activity
E- Explosion
R- 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/Overflow
F- Falling Objects
F- Freezing Pluming
E- Electric Current
C- Collapse Coverage
T- Tearing Appart
✔✔What hazards or perils are listed in the "Special Exclusions" policy? - ✔✔Building
Ordinances
Mechanical Breakdown
War & Nuclear
Power Surge - Offcite
International Acts
Earthquake
Flood
✔✔Temporary/ Emergency License - ✔✔A special allowance that can be made by the
Texas Insurance Commissioner for an insurance company employee during an
emergency for the purposes of training?
✔✔Five day's notice - ✔✔How many days notice must a company give the
Commissioner to issue a temporary license or emergency license to an individual for the
pruposes of training?
✔✔Who is responsible for the actions of the licensee once an emergency or temporary
license has been issued? - ✔✔The firm requesting the license is responsible..
✔✔A Property and Casualty Adjuster licenses allows? - ✔✔This license allows a person
to adjust or supervise claims in all areas of property and casualty insurance EXECPT
workers' compensation.
✔✔Domestic Insurer - ✔✔An insurance company that is incorporated in the state.
✔✔Foreign Insurance Company - ✔✔An insurance company that is incorporated
outside the state where it is conducting business
✔✔Who is the Chief Executive Officer of the Texas Department of Insurance? - ✔✔The
Commissioner
, ✔✔How long does the Commissioner serve? - ✔✔A term of two years
✔✔What are the basic qualifications for adjusters in Texas? - ✔✔a. 18 years of age
b. Citizen of Texas or approved by a nonresidents home state
c. If a nonresident of the U.S., he must comply with all federal laws pertaining to
employment in the U.S.
d. Trustworthy
e. Sufficient training or experience to be a competent adjuster
f. Must pass an examination to qualify for adjusters licensing.
✔✔Who is exempt from Examination? - ✔✔Those individuals with are:
1. Chartered Property and Casualty Underwriter (CPCU)
2. Associate in Claims (AIC) designation
3. A persons who's adjusters license has expired within a period of less than one year
✔✔How long after the change of a business location must a licensee notify the
Commissioner? - ✔✔30 days
✔✔How long is an adjusters license good for? - ✔✔Two years on the licensee birthday
✔✔How much does is an adjuster required to pay to renew a license that has expired
within less than 90 days? - ✔✔The renewal fee PLUS a 50% penalty
✔✔How many hours of continuing education are requested to renew a license? - ✔✔24
hours every two year cycle
✔✔How much of continuing education must be conducted in a classroom environment?
- ✔✔50% of the 24 hours
✔✔How many hours of ethics training are required during continuing edcuation? - ✔✔2
hours of 24 total hours.
✔✔What authority does the Commissioner of Insurance have? - ✔✔To police the
activities of two entities:
1. Insurance companies
2. Insurance professionals, including the licensing of insurance agents and adjusters
✔✔How often is a domestic headquartered insurance company audited by the office of
the Commissioner? - ✔✔Once every 5 years
✔✔The insurance company pays for what event which is required to take place every
five years? - ✔✔The audit by the insurance commission.
GUARANTEE A+ 2025/2026
✔✔Unfair Claim Settlement Practices Act - ✔✔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 - ✔✔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?
✔✔15 days - ✔✔How many days does an adjust have to acknowledge the claim
✔✔15 Business days - ✔✔How many days does an adjust have to accept or reject the
claim after he receives complete information?
✔✔5 calendar days - ✔✔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? - ✔✔(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 insured
V- Volcano activity
E- Explosion
R- 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/Overflow
F- Falling Objects
F- Freezing Pluming
E- Electric Current
C- Collapse Coverage
T- Tearing Appart
✔✔What hazards or perils are listed in the "Special Exclusions" policy? - ✔✔Building
Ordinances
Mechanical Breakdown
War & Nuclear
Power Surge - Offcite
International Acts
Earthquake
Flood
✔✔Temporary/ Emergency License - ✔✔A special allowance that can be made by the
Texas Insurance Commissioner for an insurance company employee during an
emergency for the purposes of training?
✔✔Five day's notice - ✔✔How many days notice must a company give the
Commissioner to issue a temporary license or emergency license to an individual for the
pruposes of training?
✔✔Who is responsible for the actions of the licensee once an emergency or temporary
license has been issued? - ✔✔The firm requesting the license is responsible..
✔✔A Property and Casualty Adjuster licenses allows? - ✔✔This license allows a person
to adjust or supervise claims in all areas of property and casualty insurance EXECPT
workers' compensation.
✔✔Domestic Insurer - ✔✔An insurance company that is incorporated in the state.
✔✔Foreign Insurance Company - ✔✔An insurance company that is incorporated
outside the state where it is conducting business
✔✔Who is the Chief Executive Officer of the Texas Department of Insurance? - ✔✔The
Commissioner
, ✔✔How long does the Commissioner serve? - ✔✔A term of two years
✔✔What are the basic qualifications for adjusters in Texas? - ✔✔a. 18 years of age
b. Citizen of Texas or approved by a nonresidents home state
c. If a nonresident of the U.S., he must comply with all federal laws pertaining to
employment in the U.S.
d. Trustworthy
e. Sufficient training or experience to be a competent adjuster
f. Must pass an examination to qualify for adjusters licensing.
✔✔Who is exempt from Examination? - ✔✔Those individuals with are:
1. Chartered Property and Casualty Underwriter (CPCU)
2. Associate in Claims (AIC) designation
3. A persons who's adjusters license has expired within a period of less than one year
✔✔How long after the change of a business location must a licensee notify the
Commissioner? - ✔✔30 days
✔✔How long is an adjusters license good for? - ✔✔Two years on the licensee birthday
✔✔How much does is an adjuster required to pay to renew a license that has expired
within less than 90 days? - ✔✔The renewal fee PLUS a 50% penalty
✔✔How many hours of continuing education are requested to renew a license? - ✔✔24
hours every two year cycle
✔✔How much of continuing education must be conducted in a classroom environment?
- ✔✔50% of the 24 hours
✔✔How many hours of ethics training are required during continuing edcuation? - ✔✔2
hours of 24 total hours.
✔✔What authority does the Commissioner of Insurance have? - ✔✔To police the
activities of two entities:
1. Insurance companies
2. Insurance professionals, including the licensing of insurance agents and adjusters
✔✔How often is a domestic headquartered insurance company audited by the office of
the Commissioner? - ✔✔Once every 5 years
✔✔The insurance company pays for what event which is required to take place every
five years? - ✔✔The audit by the insurance commission.
