USAA Licensing Exam Questions and Answers 2024 with complete solution

USAA Licensing Exam Questions and Answers 2024 with complete solution Insurance - answerTransfer of risk from one person or organization to an insurance company Indemnity - answerThe principle to restore the insured to the pre-loss economic or financial condition. Law of Large numbers - answerMathematical principle used by insurers to predict losses to charge the appropriate premiums Insurable Interest - answerProof that someone stands to lose financially if a loss occurs; must exist at the time of the loss in property and casualty insurance Binder - answerTemporary insurance contract; commits the company to act as if a policy has been issued Peril - answerCause of loss Direct Loss - answerImmediate actual physical damage to tangible property Indirect loss - answerInability to use property as a result of a direct loss Risk - answerChance of loss; uncertainty of loss What are the two types of risk? - answerSpeculative and Pure Speculative Risk - answerInvolves the simultaneous chance of gain or loss: is not insurable Pure Risk - answera risk that presents the chance of loss but no opportunity for gain (insurable) What are two examples of speculative risk? - answerGambling Investing What is an example of your risk? - answerCar accident Physical hazards include - answerVisible condition that increases the chance of loss Morale Hazard - answerAttitude of carelessness or indifference to loss Insurer - answerThe insurance company (a.k.a. second party to the contract) Named Insured - answerA party named on the declarations who is purchasing the insurance policy (a.k.a. first party to the contract) Insured - answerWho the insurer promises to protect in addition to the named insured Limit of Liability - answerThe maximum amount that can be paid for a covered loss Consideration - answerAn exchange of value between parties to a contract Waiver - answerThe voluntary relinquishment of a known right What is Estopple? - answerWhen 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 - answerInsured or prospect deliberately withholding material information from the insurer, this voids coverage Material Misrepresentation - answerInsured or prospect giving incorrect material information to the insurer, this voids coverage Warranty - answerA written condition in the policy that must be true at the time of the loss Texas Department of Insurance - answerIn Texas, the insurance industry is regulated by the Commissioner - answerThe (_______) is appointed by the governor and heads the Texas Department of Insurance Adjuster - answerAccording 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 - answerA (_____) is on the payroll of an insurance company and is paid a salary or by the hour Independent Adjuster - answerA (___) handles claims for one or more insurance companies and receives a fee based on time and expense. Public Adjuster - answerA (__) 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 - answerPersons marketing (Selling) insurance products are called (___) Alien Insurer - answerAn insurer organ