USAA Licensing Exam Most Recent exam COMPLETE (2026) EXAM
Questions and Answers (Verified Answers) (Latest Update 2026)
UPDATE!!
Insurable Interest - CORRECT ANSWER ✔✔✔✔✔ 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 - CORRECT ANSWER ✔✔✔✔✔ Temporary insurance contract; commits the
company to act as if a policy has been issued
Peril - CORRECT ANSWER ✔✔✔✔✔ Cause of loss
Direct Loss - CORRECT ANSWER ✔✔✔✔✔ Immediate actual physical damage to
tangible property
Indirect loss - CORRECT ANSWER ✔✔✔✔✔ Inability to use property as a result of a
direct loss
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,Risk - CORRECT ANSWER ✔✔✔✔✔ Chance of loss; uncertainty of loss
What are the two types of risk? - CORRECT ANSWER ✔✔✔✔✔ Speculative and Pure
Speculative Risk - CORRECT ANSWER ✔✔✔✔✔ Involves the simultaneous chance of
gain or loss: is not insurable
Pure Risk - CORRECT ANSWER ✔✔✔✔✔ a risk that presents the chance of loss but
no opportunity for gain (insurable)
What are two examples of speculative risk? - CORRECT ANSWER ✔✔✔✔✔ Gambling
Investing
What is an example of your risk? - CORRECT ANSWER ✔✔✔✔✔ Car accident
Physical hazards include - CORRECT ANSWER ✔✔✔✔✔ Visible condition that
increases the chance of loss
Morale Hazard - CORRECT ANSWER ✔✔✔✔✔ Attitude of carelessness or indifference
to loss
Insurer - CORRECT ANSWER ✔✔✔✔✔ The insurance company (a.k.a. second party
to the contract)
Named Insured - CORRECT ANSWER ✔✔✔✔✔ A party named on the declarations
who is purchasing the insurance policy (a.k.a. first party to the contract)
Insured - CORRECT ANSWER ✔✔✔✔✔ Who the insurer promises to protect in
addition to the named insured
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,Limit of Liability - CORRECT ANSWER ✔✔✔✔✔ The maximum amount that can be
paid for a covered loss
Consideration - CORRECT ANSWER ✔✔✔✔✔ An exchange of value between parties
to a contract
Waiver - CORRECT ANSWER ✔✔✔✔✔ The voluntary relinquishment of a known right
What is Estopple? - CORRECT 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 - CORRECT ANSWER ✔✔✔✔✔ Insured or prospect deliberately
withholding material information from the insurer, this voids coverage
Material Misrepresentation - CORRECT ANSWER ✔✔✔✔✔ Insured or prospect giving
incorrect material information to the insurer, this voids coverage
Warranty - CORRECT ANSWER ✔✔✔✔✔ A written condition in the policy that must be
true at the time of the loss
Texas Department of Insurance - CORRECT ANSWER ✔✔✔✔✔ In Texas, the
insurance industry is regulated by the
Commissioner - CORRECT ANSWER ✔✔✔✔✔ The (_______) is appointed by the
governor and heads the Texas Department of Insurance
Adjuster - CORRECT 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 (_______________)
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, A Staff Adjuster - CORRECT ANSWER ✔✔✔✔✔ A (_____) is on the payroll of an
insurance company and is paid a salary or by the hour
Independent Adjuster - CORRECT ANSWER ✔✔✔✔✔ A (___) handles claims for one
or more insurance companies and receives a fee based on time and expense.
Public Adjuster - CORRECT 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 - CORRECT ANSWER ✔✔✔✔✔ Persons marketing (Selling)
insurance products are called (___)
Alien Insurer - CORRECT ANSWER ✔✔✔✔✔ An insurer organized and domiciled
outside the United States is called an (_____)
Domestic Insurer - CORRECT ANSWER ✔✔✔✔✔ An insurer organized, admitted, and
writing insurance in Texas is called a (______)
A Foreign Insurer - CORRECT ANSWER ✔✔✔✔✔ An insurer domiciled outside the
state where she writes business is called a (____)
Unfair Claim Settlement - CORRECT ANSWER ✔✔✔✔✔ An adjuster intentionally
lowballs the claim settlement by offering less than the amount owed to the insured
Unfair Claim Settlement Practices Act - CORRECT 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 - CORRECT ANSWER ✔✔✔✔✔ The insurance
company fails to adopt reasonable standards for processing claims
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Questions and Answers (Verified Answers) (Latest Update 2026)
UPDATE!!
Insurable Interest - CORRECT ANSWER ✔✔✔✔✔ 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 - CORRECT ANSWER ✔✔✔✔✔ Temporary insurance contract; commits the
company to act as if a policy has been issued
Peril - CORRECT ANSWER ✔✔✔✔✔ Cause of loss
Direct Loss - CORRECT ANSWER ✔✔✔✔✔ Immediate actual physical damage to
tangible property
Indirect loss - CORRECT ANSWER ✔✔✔✔✔ Inability to use property as a result of a
direct loss
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EXAMPREPMASTER
,Risk - CORRECT ANSWER ✔✔✔✔✔ Chance of loss; uncertainty of loss
What are the two types of risk? - CORRECT ANSWER ✔✔✔✔✔ Speculative and Pure
Speculative Risk - CORRECT ANSWER ✔✔✔✔✔ Involves the simultaneous chance of
gain or loss: is not insurable
Pure Risk - CORRECT ANSWER ✔✔✔✔✔ a risk that presents the chance of loss but
no opportunity for gain (insurable)
What are two examples of speculative risk? - CORRECT ANSWER ✔✔✔✔✔ Gambling
Investing
What is an example of your risk? - CORRECT ANSWER ✔✔✔✔✔ Car accident
Physical hazards include - CORRECT ANSWER ✔✔✔✔✔ Visible condition that
increases the chance of loss
Morale Hazard - CORRECT ANSWER ✔✔✔✔✔ Attitude of carelessness or indifference
to loss
Insurer - CORRECT ANSWER ✔✔✔✔✔ The insurance company (a.k.a. second party
to the contract)
Named Insured - CORRECT ANSWER ✔✔✔✔✔ A party named on the declarations
who is purchasing the insurance policy (a.k.a. first party to the contract)
Insured - CORRECT ANSWER ✔✔✔✔✔ Who the insurer promises to protect in
addition to the named insured
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EXAMPREPMASTER
,Limit of Liability - CORRECT ANSWER ✔✔✔✔✔ The maximum amount that can be
paid for a covered loss
Consideration - CORRECT ANSWER ✔✔✔✔✔ An exchange of value between parties
to a contract
Waiver - CORRECT ANSWER ✔✔✔✔✔ The voluntary relinquishment of a known right
What is Estopple? - CORRECT 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 - CORRECT ANSWER ✔✔✔✔✔ Insured or prospect deliberately
withholding material information from the insurer, this voids coverage
Material Misrepresentation - CORRECT ANSWER ✔✔✔✔✔ Insured or prospect giving
incorrect material information to the insurer, this voids coverage
Warranty - CORRECT ANSWER ✔✔✔✔✔ A written condition in the policy that must be
true at the time of the loss
Texas Department of Insurance - CORRECT ANSWER ✔✔✔✔✔ In Texas, the
insurance industry is regulated by the
Commissioner - CORRECT ANSWER ✔✔✔✔✔ The (_______) is appointed by the
governor and heads the Texas Department of Insurance
Adjuster - CORRECT 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 (_______________)
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, A Staff Adjuster - CORRECT ANSWER ✔✔✔✔✔ A (_____) is on the payroll of an
insurance company and is paid a salary or by the hour
Independent Adjuster - CORRECT ANSWER ✔✔✔✔✔ A (___) handles claims for one
or more insurance companies and receives a fee based on time and expense.
Public Adjuster - CORRECT 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 - CORRECT ANSWER ✔✔✔✔✔ Persons marketing (Selling)
insurance products are called (___)
Alien Insurer - CORRECT ANSWER ✔✔✔✔✔ An insurer organized and domiciled
outside the United States is called an (_____)
Domestic Insurer - CORRECT ANSWER ✔✔✔✔✔ An insurer organized, admitted, and
writing insurance in Texas is called a (______)
A Foreign Insurer - CORRECT ANSWER ✔✔✔✔✔ An insurer domiciled outside the
state where she writes business is called a (____)
Unfair Claim Settlement - CORRECT ANSWER ✔✔✔✔✔ An adjuster intentionally
lowballs the claim settlement by offering less than the amount owed to the insured
Unfair Claim Settlement Practices Act - CORRECT 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 - CORRECT ANSWER ✔✔✔✔✔ The insurance
company fails to adopt reasonable standards for processing claims
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