10/3/25, 8:29 PM USAA Licensing Exam 2025 (Actual Exam) Questions with verified Answers (Latest Update 2025) UPDATE!! Flashcards | Quizlet
USAA Licensing Exam 2025 (Actual Exam)
Questions with verified Answers (Latest Update
2025) UPDATE!!
Save
Terms in this set (268)
Transfer of risk from one person or organization to an
Insurance
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 loss
Insurable Interest occurs; must exist at the time of the loss in property
and casualty insurance
Temporary insurance contract; commits the company
Binder
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 of Speculative and Pure
risk?
https://quizlet.com/1086995705/usaa-licensing-exam-2025-actual-exam-questions-with-verified-answers-latest-update-2025-update-flash-cards/?new 1/27
,10/3/25, 8:29 PM USAA Licensing Exam 2025 (Actual Exam) Questions with verified Answers (Latest Update 2025) UPDATE!! Flashcards | Quizlet
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 of Gambling
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 purchasing
Named Insured
the insurance policy (a.k.a. first party to the contract)
Who the insurer promises to protect in addition to the
Insured
named insured
The maximum amount that can be paid for a covered
Limit of Liability
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 material
Concealment
information from the insurer, this voids coverage
Insured or prospect giving incorrect material
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/1086995705/usaa-licensing-exam-2025-actual-exam-questions-with-verified-answers-latest-update-2025-update-flash-cards/?new 2/27
, 10/3/25, 8:29 PM USAA Licensing Exam 2025 (Actual Exam) Questions with verified Answers (Latest Update 2025) UPDATE!! Flashcards | Quizlet
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 who
Adjuster
supervises the handling of claims must be licensed as
an (_______________)
A (_____) is on the payroll of an insurance company and
A Staff Adjuster
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 insurance
Domestic Insurer
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 settlement
Unfair Claim 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 be
Practices Act
canceled
Unfair Claims Settlement The insurance company fails to adopt reasonable
Practices Act standards for processing claims
https://quizlet.com/1086995705/usaa-licensing-exam-2025-actual-exam-questions-with-verified-answers-latest-update-2025-update-flash-cards/?new 3/27
USAA Licensing Exam 2025 (Actual Exam)
Questions with verified Answers (Latest Update
2025) UPDATE!!
Save
Terms in this set (268)
Transfer of risk from one person or organization to an
Insurance
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 loss
Insurable Interest occurs; must exist at the time of the loss in property
and casualty insurance
Temporary insurance contract; commits the company
Binder
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 of Speculative and Pure
risk?
https://quizlet.com/1086995705/usaa-licensing-exam-2025-actual-exam-questions-with-verified-answers-latest-update-2025-update-flash-cards/?new 1/27
,10/3/25, 8:29 PM USAA Licensing Exam 2025 (Actual Exam) Questions with verified Answers (Latest Update 2025) UPDATE!! Flashcards | Quizlet
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 of Gambling
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 purchasing
Named Insured
the insurance policy (a.k.a. first party to the contract)
Who the insurer promises to protect in addition to the
Insured
named insured
The maximum amount that can be paid for a covered
Limit of Liability
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 material
Concealment
information from the insurer, this voids coverage
Insured or prospect giving incorrect material
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/1086995705/usaa-licensing-exam-2025-actual-exam-questions-with-verified-answers-latest-update-2025-update-flash-cards/?new 2/27
, 10/3/25, 8:29 PM USAA Licensing Exam 2025 (Actual Exam) Questions with verified Answers (Latest Update 2025) UPDATE!! Flashcards | Quizlet
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 who
Adjuster
supervises the handling of claims must be licensed as
an (_______________)
A (_____) is on the payroll of an insurance company and
A Staff Adjuster
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 insurance
Domestic Insurer
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 settlement
Unfair Claim 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 be
Practices Act
canceled
Unfair Claims Settlement The insurance company fails to adopt reasonable
Practices Act standards for processing claims
https://quizlet.com/1086995705/usaa-licensing-exam-2025-actual-exam-questions-with-verified-answers-latest-update-2025-update-flash-cards/?new 3/27
