USAA LICENSING EXAM TEST BANK WITH COMPLETE 400 QUESTIONS AND CORRECT ANSWERS JUST RELEASED THIS YEAR

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USAA LICENSING EXAM TEST BANK
WITH COMPLETE 400 QUESTIONS AND
CORRECT ANSWERS JUST RELEASED
THIS YEAR


USAA Licensing Exam

Question: Law of Large numbers - CORRECT ANSWER✔✔Mathematical principle used by
insurers to predict losses to charge the appropriate premiums




Question: 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




Question: Risk - CORRECT ANSWER✔✔Chance of loss; uncertainty of loss




Question: Speculative Risk - CORRECT ANSWER✔✔Involves the simultaneous chance of gain or
loss: is not insurable




Question: Pure Risk - CORRECT ANSWER✔✔a risk that presents the chance of loss but no
opportunity for gain (insurable)

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Question: What are two examples of speculative risk? - CORRECT ANSWER✔✔Gambling

Investing




Question: Consideration - CORRECT ANSWER✔✔An exchange of value between parties to a
contract




Question: 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?




Question: Material Misrepresentation - CORRECT ANSWER✔✔Insured or prospect giving
incorrect material information to the insurer, this voids coverage




Question: Warranty - CORRECT ANSWER✔✔A written condition in the policy that must be true
at the time of the loss




Question: Unfair Claim Settlement - CORRECT ANSWER✔✔An adjuster intentionally lowballs
the claim settlement by offering less than the amount owed to the insured

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Question: 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




Question: Unfair Claims Settlement Practices Act - CORRECT ANSWER✔✔The insurance
company fails to adopt reasonable standards for processing claims




Question: Unfair Claim Settlement - CORRECT ANSWER✔✔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?




Question: Supplemental Coverages - CORRECT ANSWER✔✔The insurance company defends the
insured for a suit arising out of a covered claim




Question: An unfair claims settlement practice. - CORRECT ANSWER✔✔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?




Question: An unfair claims settlement practice - CORRECT ANSWER✔✔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?

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Question: What hazards does Standard Fire Protection cover? - CORRECT ANSWER✔✔(FLI)Fire,
Lightning, Internal Explosions




Question: What hazards does Name Peril "Basic" Cover? - CORRECT ANSWER✔✔(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




Question: What hazards are covered under "Named Peril Broad" coverage? - CORRECT
ANSWER✔✔(FLI+WCSHAVVERM) &

B- Burglary Damage

I- Ice/Sleet/Snow

G- Glass Coverage