USAA LICENSING Exam Questions and
Answers Latest Updated 2025 Graded
A+
A Staff Adjuster - ANS ✓A (_____) is on the payroll of an insurance company and
is paid a salary or by the hour
Independent Adjuster - ANS ✓A (___) handles claims for one or more insurance
companies and receives a fee based on time and expense.
Public Adjuster - ANS ✓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 - ANS ✓Persons marketing (Selling) insurance products are
called (___)
Alien Insurer - ANS ✓An insurer organized and domiciled outside the United
States is called an (_____)
Domestic Insurer - ANS ✓An insurer organized, admitted, and writing insurance
in Texas is called a (______)
A Foreign Insurer - ANS ✓An insurer domiciled outside the state where she
writes business is called a (____)
Unfair Claim Settlement - ANS ✓An adjuster intentionally lowballs the claim
settlement by offering less than the amount owed to the insured
1
USAA LICENSING
,Unfair Claim Settlement Practices Act - ANS ✓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 - ANS ✓The insurance company fails to
adopt reasonable standards for processing claims
Unfair Claim Settlement - ANS ✓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 - ANS ✓The insurance company defends the insured
for a suit arising out of a covered claim
An unfair claims settlement practice. - ANS ✓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 - ANS ✓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 - ANS ✓How many days does an adjust have to acknowledge the claim
15 Business days - ANS ✓How many days does an adjust have to accept or reject
the claim after he receives complete information?
5 calendar days - ANS ✓How many days does an adjuster have to send the check
after he agrees to pay the claim?
2
USAA LICENSING
,What hazards does Standard Fire Protection cover? - ANS ✓(FLI)Fire,
Lightning, Internal Explosions
What hazards does Name Peril "Basic" Cover? - ANS ✓(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? - ANS
✓(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? - ANS
✓Building Ordinances
3
USAA LICENSING
, Mechanical Breakdown
War & Nuclear
Power Surge - Offcite
International Acts
Earthquake
Flood
Temporary/ Emergency License - ANS ✓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 - ANS ✓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? - ANS ✓The firm requesting the license is
responsible..
A Property and Casualty Adjuster licenses allows? - ANS ✓This license allows
a person to adjust or supervise claims in all areas of property and casualty
insurance EXECPT workers' compensation.
Domestic Insurer - ANS ✓An insurance company that is incorporated in the
state.
Foreign Insurance Company - ANS ✓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? -
ANS ✓The Commissioner
4
USAA LICENSING
Answers Latest Updated 2025 Graded
A+
A Staff Adjuster - ANS ✓A (_____) is on the payroll of an insurance company and
is paid a salary or by the hour
Independent Adjuster - ANS ✓A (___) handles claims for one or more insurance
companies and receives a fee based on time and expense.
Public Adjuster - ANS ✓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 - ANS ✓Persons marketing (Selling) insurance products are
called (___)
Alien Insurer - ANS ✓An insurer organized and domiciled outside the United
States is called an (_____)
Domestic Insurer - ANS ✓An insurer organized, admitted, and writing insurance
in Texas is called a (______)
A Foreign Insurer - ANS ✓An insurer domiciled outside the state where she
writes business is called a (____)
Unfair Claim Settlement - ANS ✓An adjuster intentionally lowballs the claim
settlement by offering less than the amount owed to the insured
1
USAA LICENSING
,Unfair Claim Settlement Practices Act - ANS ✓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 - ANS ✓The insurance company fails to
adopt reasonable standards for processing claims
Unfair Claim Settlement - ANS ✓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 - ANS ✓The insurance company defends the insured
for a suit arising out of a covered claim
An unfair claims settlement practice. - ANS ✓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 - ANS ✓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 - ANS ✓How many days does an adjust have to acknowledge the claim
15 Business days - ANS ✓How many days does an adjust have to accept or reject
the claim after he receives complete information?
5 calendar days - ANS ✓How many days does an adjuster have to send the check
after he agrees to pay the claim?
2
USAA LICENSING
,What hazards does Standard Fire Protection cover? - ANS ✓(FLI)Fire,
Lightning, Internal Explosions
What hazards does Name Peril "Basic" Cover? - ANS ✓(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? - ANS
✓(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? - ANS
✓Building Ordinances
3
USAA LICENSING
, Mechanical Breakdown
War & Nuclear
Power Surge - Offcite
International Acts
Earthquake
Flood
Temporary/ Emergency License - ANS ✓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 - ANS ✓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? - ANS ✓The firm requesting the license is
responsible..
A Property and Casualty Adjuster licenses allows? - ANS ✓This license allows
a person to adjust or supervise claims in all areas of property and casualty
insurance EXECPT workers' compensation.
Domestic Insurer - ANS ✓An insurance company that is incorporated in the
state.
Foreign Insurance Company - ANS ✓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? -
ANS ✓The Commissioner
4
USAA LICENSING
