1
USAA Licensing Exam 2025 Real Exam Questions And
Answers ( 100% ACCURATE) GET IT RIGHT!!
Insurance - (ANSWER)Transfer of risk from one person or organization to an
insurance company
Indemnity - (ANSWER)The principle to restore the insured to the pre-loss
economic or financial condition.
Law of Large numbers - (ANSWER)Mathematical principle used by insurers to
predict losses to charge the appropriate premiums
Insurable Interest - (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 - (ANSWER)Temporary insurance contract; commits the company to act as
if a policy has been issued
Peril - (ANSWER)Cause of loss
Direct Loss - (ANSWER)Immediate actual physical damage to tangible property
Indirect loss - (ANSWER)Inability to use property as a result of a direct loss
Risk - (ANSWER)Chance of loss; uncertainty of loss
, 2
What are the two types of risk? - (ANSWER)Speculative and Pure
Speculative Risk - (ANSWER)Involves the simultaneous chance of gain or loss: is
not insurable
Pure Risk - (ANSWER)a risk that presents the chance of loss but no opportunity
for gain (insurable)
What are two examples of speculative risk? - (ANSWER)Gambling
Investing
What is an example of your risk? - (ANSWER)Car accident
Physical hazards include - (ANSWER)Visible condition that increases the chance of
loss
Morale Hazard - (ANSWER)Attitude of carelessness or indifference to loss
Insurer - (ANSWER)The insurance company (a.k.a. second party to the contract)
Named Insured - (ANSWER)A party named on the declarations who is purchasing
the insurance policy (a.k.a. first party to the contract)
, 3
Insured - (ANSWER)Who the insurer promises to protect in addition to the
named insured
Limit of Liability - (ANSWER)The maximum amount that can be paid for a covered
loss
Consideration - (ANSWER)An exchange of value between parties to a contract
Waiver - (ANSWER)The voluntary relinquishment of a known right
What is Estopple? - (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 - (ANSWER)Insured or prospect deliberately withholding material
information from the insurer, this voids coverage
Material Misrepresentation - (ANSWER)Insured or prospect giving incorrect
material information to the insurer, this voids coverage
Warranty - (ANSWER)A written condition in the policy that must be true at the
time of the loss
, 4
Texas Department of Insurance - (ANSWER)In Texas, the insurance industry is
regulated by the
Commissioner - (ANSWER)The (_______) is appointed by the governor and heads
the Texas Department of Insurance
Adjuster - (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 (_______________)
A Staff Adjuster - (ANSWER)A (_____) is on the payroll of an insurance company
and is paid a salary or by the hour
Independent Adjuster - (ANSWER)A (___) handles claims for one or more
insurance companies and receives a fee based on time and expense.
Public Adjuster - (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 - (ANSWER)Persons marketing (Selling) insurance products are
called (___)
Alien Insurer - (ANSWER)An insurer organized and domiciled outside the United
States is called an (_____)
USAA Licensing Exam 2025 Real Exam Questions And
Answers ( 100% ACCURATE) GET IT RIGHT!!
Insurance - (ANSWER)Transfer of risk from one person or organization to an
insurance company
Indemnity - (ANSWER)The principle to restore the insured to the pre-loss
economic or financial condition.
Law of Large numbers - (ANSWER)Mathematical principle used by insurers to
predict losses to charge the appropriate premiums
Insurable Interest - (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 - (ANSWER)Temporary insurance contract; commits the company to act as
if a policy has been issued
Peril - (ANSWER)Cause of loss
Direct Loss - (ANSWER)Immediate actual physical damage to tangible property
Indirect loss - (ANSWER)Inability to use property as a result of a direct loss
Risk - (ANSWER)Chance of loss; uncertainty of loss
, 2
What are the two types of risk? - (ANSWER)Speculative and Pure
Speculative Risk - (ANSWER)Involves the simultaneous chance of gain or loss: is
not insurable
Pure Risk - (ANSWER)a risk that presents the chance of loss but no opportunity
for gain (insurable)
What are two examples of speculative risk? - (ANSWER)Gambling
Investing
What is an example of your risk? - (ANSWER)Car accident
Physical hazards include - (ANSWER)Visible condition that increases the chance of
loss
Morale Hazard - (ANSWER)Attitude of carelessness or indifference to loss
Insurer - (ANSWER)The insurance company (a.k.a. second party to the contract)
Named Insured - (ANSWER)A party named on the declarations who is purchasing
the insurance policy (a.k.a. first party to the contract)
, 3
Insured - (ANSWER)Who the insurer promises to protect in addition to the
named insured
Limit of Liability - (ANSWER)The maximum amount that can be paid for a covered
loss
Consideration - (ANSWER)An exchange of value between parties to a contract
Waiver - (ANSWER)The voluntary relinquishment of a known right
What is Estopple? - (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 - (ANSWER)Insured or prospect deliberately withholding material
information from the insurer, this voids coverage
Material Misrepresentation - (ANSWER)Insured or prospect giving incorrect
material information to the insurer, this voids coverage
Warranty - (ANSWER)A written condition in the policy that must be true at the
time of the loss
, 4
Texas Department of Insurance - (ANSWER)In Texas, the insurance industry is
regulated by the
Commissioner - (ANSWER)The (_______) is appointed by the governor and heads
the Texas Department of Insurance
Adjuster - (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 (_______________)
A Staff Adjuster - (ANSWER)A (_____) is on the payroll of an insurance company
and is paid a salary or by the hour
Independent Adjuster - (ANSWER)A (___) handles claims for one or more
insurance companies and receives a fee based on time and expense.
Public Adjuster - (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 - (ANSWER)Persons marketing (Selling) insurance products are
called (___)
Alien Insurer - (ANSWER)An insurer organized and domiciled outside the United
States is called an (_____)
