USAA LICENSING TEST PAPER QUESTIONS AND ANSWERS
GUARANTEE A+ 2025/2026
✔✔An insurance policy is prepared by the insurance company, with little or no input
from the insured. This means that an insurance police is - ✔✔An adhesion contract
✔✔In liability policies, supplementary payments are? - ✔✔Payable in addition to the
policy limit of liability.
✔✔Endorsements are used to do all of the following EXECPT - ✔✔Cancel the entire
policy.
✔✔Who writes an endorsement? - ✔✔Underwriter's do
✔✔What are Endorsements? - ✔✔They are changes to a policy by an underwriter and
have a direct link to an increase in premiums.
✔✔Are endorsements done verbally? - ✔✔No they are done in writing
✔✔What are Supplementary payments? - ✔✔payments applied to policies that are paid
in addition to policy limits
✔✔What does the term BAILED stand for? - ✔✔B- Bonds
A- Aid (First aid...)
I- Interest on judgments against insured with no limits
L- Loss of earnings, 250 per day
E- Expenses incurred at the request of the insurer
D- Defense and investigation costs-paid with no limit
✔✔What is an endorsement? - ✔✔The only way to modify or change a policy
✔✔What are the five elements of an endorsement? - ✔✔1. Add, delete, or modify
coverage
2. Must be in writing
3. Added to the back of a policy
4. Not used to cancel a policy
5. Only the underwriter has authority to issue endorsement.
* Requires an additional premium for expanded coverage
✔✔If more than one policy covers the same property, the payment of claims would be
based on what liability principle? - ✔✔Pro-rata liability
✔✔What does the acronym C.L.A.C. represent? - ✔✔- Competent Parties
- Legal (in public interest)
, - Agreement Acceptance by Insurer
- Consideration (Insured=Premium, Insurer=Promise to indemnify)
✔✔D.I.C.E.E - ✔✔D- Declaration Page= 5 P's
I- Insurance Agreement/Promise to pay
C- Conditions= Rules/Requirements- Both insured and insurer
E- Exclusions=(Perils, not covered) or (Property not covered)
E- Endorsements= Only way to modify a policy, completed by underwriter and costs an
additional premium.
✔✔When an insurance policy is canceled, what consideration is used in determining the
refund of the premiums? - ✔✔Insurer = Pro-rated
Insured = Short Rate penalty
✔✔BAILED - ✔✔B- Bonds
A- First Aid at the scene of the accident
I - Interest on judgments against insured
L- Loss of earnings for the first policyholders
E- Expenses determined by the adjuster
D- Defense and investigation costs
✔✔Supplementary Payments - ✔✔Paid policyholder and insurance company expenses
✔✔Law of large numbers - ✔✔Predict losses to charge the appropriate premiums
✔✔Limit of Liability also known as - ✔✔Policy limits
Face Amount
✔✔Independent Adjuster - ✔✔Works for a firm or breau
✔✔Public Adjuster - ✔✔Requires an additional license
✔✔Prompt, Fair, Accurate - ✔✔These terms keep you from violating the Unfair Claims
Settlement Practices
✔✔What must the adjuster provide to the insured to acknowledge a claim? - ✔✔Proof of
loss claim form
✔✔What is REAL PROPERTY? - ✔✔Bricks and sticks, property such as a structure.
✔✔What is personal property? - ✔✔Everything that goes into a home/physical structure.
✔✔What is SFP? - ✔✔Standard Fire Policy
GUARANTEE A+ 2025/2026
✔✔An insurance policy is prepared by the insurance company, with little or no input
from the insured. This means that an insurance police is - ✔✔An adhesion contract
✔✔In liability policies, supplementary payments are? - ✔✔Payable in addition to the
policy limit of liability.
✔✔Endorsements are used to do all of the following EXECPT - ✔✔Cancel the entire
policy.
✔✔Who writes an endorsement? - ✔✔Underwriter's do
✔✔What are Endorsements? - ✔✔They are changes to a policy by an underwriter and
have a direct link to an increase in premiums.
✔✔Are endorsements done verbally? - ✔✔No they are done in writing
✔✔What are Supplementary payments? - ✔✔payments applied to policies that are paid
in addition to policy limits
✔✔What does the term BAILED stand for? - ✔✔B- Bonds
A- Aid (First aid...)
I- Interest on judgments against insured with no limits
L- Loss of earnings, 250 per day
E- Expenses incurred at the request of the insurer
D- Defense and investigation costs-paid with no limit
✔✔What is an endorsement? - ✔✔The only way to modify or change a policy
✔✔What are the five elements of an endorsement? - ✔✔1. Add, delete, or modify
coverage
2. Must be in writing
3. Added to the back of a policy
4. Not used to cancel a policy
5. Only the underwriter has authority to issue endorsement.
* Requires an additional premium for expanded coverage
✔✔If more than one policy covers the same property, the payment of claims would be
based on what liability principle? - ✔✔Pro-rata liability
✔✔What does the acronym C.L.A.C. represent? - ✔✔- Competent Parties
- Legal (in public interest)
, - Agreement Acceptance by Insurer
- Consideration (Insured=Premium, Insurer=Promise to indemnify)
✔✔D.I.C.E.E - ✔✔D- Declaration Page= 5 P's
I- Insurance Agreement/Promise to pay
C- Conditions= Rules/Requirements- Both insured and insurer
E- Exclusions=(Perils, not covered) or (Property not covered)
E- Endorsements= Only way to modify a policy, completed by underwriter and costs an
additional premium.
✔✔When an insurance policy is canceled, what consideration is used in determining the
refund of the premiums? - ✔✔Insurer = Pro-rated
Insured = Short Rate penalty
✔✔BAILED - ✔✔B- Bonds
A- First Aid at the scene of the accident
I - Interest on judgments against insured
L- Loss of earnings for the first policyholders
E- Expenses determined by the adjuster
D- Defense and investigation costs
✔✔Supplementary Payments - ✔✔Paid policyholder and insurance company expenses
✔✔Law of large numbers - ✔✔Predict losses to charge the appropriate premiums
✔✔Limit of Liability also known as - ✔✔Policy limits
Face Amount
✔✔Independent Adjuster - ✔✔Works for a firm or breau
✔✔Public Adjuster - ✔✔Requires an additional license
✔✔Prompt, Fair, Accurate - ✔✔These terms keep you from violating the Unfair Claims
Settlement Practices
✔✔What must the adjuster provide to the insured to acknowledge a claim? - ✔✔Proof of
loss claim form
✔✔What is REAL PROPERTY? - ✔✔Bricks and sticks, property such as a structure.
✔✔What is personal property? - ✔✔Everything that goes into a home/physical structure.
✔✔What is SFP? - ✔✔Standard Fire Policy
