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