USAA LICENSING LATEST
EXAM
What type of business coverage does the Auto industry have? -
ANSWERS-Garagekeepers coverage
The aggregate limit of the commercial general liability (CGL) policy is
the most the insurer will pay per? - ANSWERS-Policy period, regardless
of the number of claims filed
The insured, Lefty's Bar wants coverage for liability arising out of
selling and serving alcoholic beverages. Such coverage can be provided
by purchasing? - ANSWERS-A liquor liability coverage form
The business-owners policy provides? - ANSWERS-a prepackaged
policy of property and liability coverage for certain types of small
businesses
What is theft? - ANSWERS-The unlawful taking of property.
What is burglary? - ANSWERS-breaking and entering
What is a custodian? - ANSWERS-A person having custody of insured
property inside the premises
END OF
PAGE
1
, USAA LICENSING LATEST
EXAM
What is a Surety? - ANSWERS-The party that guarantees fulfillment of
the obligor's promise.
Suretyship is? - ANSWERS-Bonding contract guaranteeing a principles
promise
The "penalty" on a bond is equal to what amount? - ANSWERS-The
face amount
What is a performance bond used for? - ANSWERS-Used to guarantee
that work will be completed to specifications.
What is a payment bond used for? - ANSWERS-Used to guarantee that
bills for labor and materials will be paid by the contractor.
What is Hull coverage in Ocean Marine Insurance? - ANSWERS-
coverage for the ship itself and all onboard equipment; comprehensive
and collision for the ship.
END OF
PAGE
2
, USAA LICENSING LATEST
EXAM
What is a peril? - ANSWERS-A cause of loss or hazard.
What protection does Barratry cover? - ANSWERS-Any illegal act by
the master or crew to defraud the ownders of the ship or cargo.
What does the Inchmaree Clause cover? - ANSWERS-applies to loss
resulting from negligence by the captain or crew as well as defects in the
ship's hull or machinery
What is hangerkeepers liability coverage used for? - ANSWERS-
Aviation coverage
Which surety bond guarantees that bills for labor and materials will be
paid by the contractor as they are due? - ANSWERS-Payment bond
The party to a surety bond who promises to do or not do a specific thing
is? - ANSWERS-The principle
A surety bond protects the? - ANSWERS-The obligee
END OF
PAGE
3
, USAA LICENSING LATEST
EXAM
Who pays losses under bond contacts? - ANSWERS-Surety
Insurance - ANSWERS-Transfer of risk from one person or organization
to an insurance company
Indemnity - ANSWERS-The principle to restore the insured to the pre-
loss economic or financial condition.
Law of Large numbers - ANSWERS-Mathematical principle used by
insurers to predict losses to charge the appropriate premiums
Insurable Interest - ANSWERS-Proof that someone stands to lose
financially if a loss occurs; must exist at the time of the loss in property
and casualty insurance
Binder - ANSWERS-Temporary insurance contract; commits the
company to act as if a policy has been issued
Peril - ANSWERS-Cause of loss
END OF
PAGE
4
EXAM
What type of business coverage does the Auto industry have? -
ANSWERS-Garagekeepers coverage
The aggregate limit of the commercial general liability (CGL) policy is
the most the insurer will pay per? - ANSWERS-Policy period, regardless
of the number of claims filed
The insured, Lefty's Bar wants coverage for liability arising out of
selling and serving alcoholic beverages. Such coverage can be provided
by purchasing? - ANSWERS-A liquor liability coverage form
The business-owners policy provides? - ANSWERS-a prepackaged
policy of property and liability coverage for certain types of small
businesses
What is theft? - ANSWERS-The unlawful taking of property.
What is burglary? - ANSWERS-breaking and entering
What is a custodian? - ANSWERS-A person having custody of insured
property inside the premises
END OF
PAGE
1
, USAA LICENSING LATEST
EXAM
What is a Surety? - ANSWERS-The party that guarantees fulfillment of
the obligor's promise.
Suretyship is? - ANSWERS-Bonding contract guaranteeing a principles
promise
The "penalty" on a bond is equal to what amount? - ANSWERS-The
face amount
What is a performance bond used for? - ANSWERS-Used to guarantee
that work will be completed to specifications.
What is a payment bond used for? - ANSWERS-Used to guarantee that
bills for labor and materials will be paid by the contractor.
What is Hull coverage in Ocean Marine Insurance? - ANSWERS-
coverage for the ship itself and all onboard equipment; comprehensive
and collision for the ship.
END OF
PAGE
2
, USAA LICENSING LATEST
EXAM
What is a peril? - ANSWERS-A cause of loss or hazard.
What protection does Barratry cover? - ANSWERS-Any illegal act by
the master or crew to defraud the ownders of the ship or cargo.
What does the Inchmaree Clause cover? - ANSWERS-applies to loss
resulting from negligence by the captain or crew as well as defects in the
ship's hull or machinery
What is hangerkeepers liability coverage used for? - ANSWERS-
Aviation coverage
Which surety bond guarantees that bills for labor and materials will be
paid by the contractor as they are due? - ANSWERS-Payment bond
The party to a surety bond who promises to do or not do a specific thing
is? - ANSWERS-The principle
A surety bond protects the? - ANSWERS-The obligee
END OF
PAGE
3
, USAA LICENSING LATEST
EXAM
Who pays losses under bond contacts? - ANSWERS-Surety
Insurance - ANSWERS-Transfer of risk from one person or organization
to an insurance company
Indemnity - ANSWERS-The principle to restore the insured to the pre-
loss economic or financial condition.
Law of Large numbers - ANSWERS-Mathematical principle used by
insurers to predict losses to charge the appropriate premiums
Insurable Interest - ANSWERS-Proof that someone stands to lose
financially if a loss occurs; must exist at the time of the loss in property
and casualty insurance
Binder - ANSWERS-Temporary insurance contract; commits the
company to act as if a policy has been issued
Peril - ANSWERS-Cause of loss
END OF
PAGE
4
