USAA Test Questions With Correct Answers

USAA Test Questions With Correct Answers

What |type |of |reinsurance |contract |involves |two |companies |automatically |sharing |their |risk |
exposure? |- |CORRECT |ANSWER✔✔-treaty



A |group-owned |insurance |company |that |is |formed |to |assume |and |spread |the |liability |risks |of |
its |members |is |known |as |a |- |CORRECT |ANSWER✔✔-risk |retention |group



What |is |the |name |of |the |law |that |requires |insurers |to |disclose |information |gathering |practices |
and |where |the |information |was |obtained? |- |CORRECT |ANSWER✔✔-Fair |Credit |Reporting |Act



The |stated |amount |or |percent |of |liquid |assets |that |an |insurer |must |have |on |hand |that |will |
satisfy |future |obligations |to |its |policyholders |is |called: |- |CORRECT |ANSWER✔✔-reserves



A |nonprofit |incorporated |society |that |does |not |have |capital |stock |and |operates |for |the |sole |
benefit |of |its |members |is |known |as: |- |CORRECT |ANSWER✔✔-fraternal |benefit |society



If |a |contract |of |adhesion |contains |questionable |language, |to |whom |would |the |interpretation |
be |in |favor |of? |- |CORRECT |ANSWER✔✔-insured



What |is |a |warranty? |- |CORRECT |ANSWER✔✔-is |a |statement |guaranteed |to |be |true



A |policy |of |adhesion |can |only |be |modified |by |whom? |- |CORRECT |ANSWER✔✔-insurance |
company



Stranger |Originated |Life |Insurance |(STOLI) |has |been |found |to |be |in |violation |of |which |of |the |
following |contractual |elements? |- |CORRECT |ANSWER✔✔-Legal |Purpose |(Insurable |Interest)

,Which |of |these |is |considered |a |statement |that |is |assured |to |be |true |in |every |respect? |- |
CORRECT |ANSWER✔✔-warranty



Which |of |these |is |NOT |a |type |of |agent |authority? |- |CORRECT |ANSWER✔✔-principal



The |Consideration |clause |of |an |insurance |contract |includes: |- |CORRECT |ANSWER✔✔-the |
schedule |and |amount |of |premium |payments



What |is |the |consideration |given |by |an |insurer |in |the |Consideration |clause |of |the |life |policy? |- |
CORRECT |ANSWER✔✔-Promise |to |pay |a |death |benefit |to |a |named |beneficiary



Who |makes |the |legally |enforceable |promises |in |a |unilateral |insurance |policy? |- |CORRECT |
ANSWER✔✔-insurance |company



All |of |the |following |are |considered |to |be |typical |characteristics |describing |the |nature |of |an |
insurance |contract, |EXCEPT: |- |CORRECT |ANSWER✔✔-bilateral



At |what |point |does |an |informal |contact |become |binding? |- |CORRECT |ANSWER✔✔-When |one |
party |makes |an |offer |and |the |other |party |accepts |that |offer.



Which |of |these |arrangements |allows |one |to |bypass |insurable |interest |laws? |- |CORRECT |
ANSWER✔✔-Investor-Originated |Life |Insurance



Taking |receipt |of |premiums |and |holding |them |for |the |insurance |company |is |an |example |of |- |
CORRECT |ANSWER✔✔-fiduciary |responsibility



Life |and |health |insurance |policies |are: |- |CORRECT |ANSWER✔✔-unilateral |contracts

, What |type |of |life |insurance |gives |the |greatest |amount |of |coverage |for |a |limited |period |of |
time? |- |CORRECT |ANSWER✔✔-Term |life



Which |type |of |life |policy |contains |a |monthly |mortality |charge |as |well |as |self-directed |
investment |choices? |- |CORRECT |ANSWER✔✔-Variable |Universal |Life



T |has |a |term |policy |that |allows |him |to |continue |the |coverage |after |expiration |of |the |initial |
policy |period. |What |type |of |term |coverage |is |this? |- |CORRECT |ANSWER✔✔-renewable



Which |of |the |following |policies |is |characterized |by |a |flexible |premium |and |death |benefit |and |
allows |the |policyowner |control |of |the |investment |aspect |of |the |plan? |- |CORRECT |ANSWER✔✔-
Variable |universal |life



D |needs |life |insurance |that |provides |coverage |for |only |a |limited |amount |of |time |while |also |
paying |the |lowest |possible |premium. |What |kind |of |policy |is |needed? |- |CORRECT |ANSWER✔✔-
Level |term



A |policy |that |becomes |a |Modified |Endowment |Contract |(MEC) |- |CORRECT |ANSWER✔✔-will |
lose |many |of |its |tax |advantages



Term |insurance |has |which |of |the |following |characteristics? |- |CORRECT |ANSWER✔✔-Expires |at |
the |end |of |the |policy |period



What |type |of |life |policy |covers |two |people |and |pays |upon |death |of |the |last |insured? |- |
CORRECT |ANSWER✔✔-survivorship



A |father |who |dies |within |3 |years |after |purchasing |a |life |insurance |policy |on |his |infant |daughter
|can |have |the |policy |premiums |waived |under |which |provision? |- |CORRECT |ANSWER✔✔-Payor |


provision