USAA LICENSING EXAMINATION SET QUESTIONS AND
ANSWERS GUARANTEE A+ 2025/2026
✔✔What is Subrogation? - ✔✔Is the transfer by the insured by to the insurance
company of the legal right of the insureds' right of recovery against the party that
caused the harm.
*Only after insurer has paid first party*
✔✔When does a claim go to Arbitration? - ✔✔Dispute over weather or not a claim is
valid.
✔✔If there is a total loss by fire in the state of Texas? - ✔✔requires insurer pay the face
amount immediatly (limited to the value of the structure ONLY)
✔✔Intangible Damages - ✔✔Non-economic, general damages including pain and
suffering and mental anguish
✔✔Why is negotiation important? - ✔✔Negotiation is a critical factor in meeting a
companies goals.
To promptly, fairly, and accurately settle a claim.
✔✔When the insurer and the insured cannot agree on the value of a loss, the matter is
submitted to disinterested parties for resolution. Under a standard appraisal clause, how
many parties are involved in determining the value of the loss? - ✔✔3 Parties
✔✔What legal principles allows insurance companies to collect from the party at fault? -
✔✔Subrogation
✔✔Arbitration involves what type of issue? - ✔✔Coverage Issues
✔✔To whom might an insured abandon her property to be paid for a total loss? -
✔✔Abandonment is not allowed in Texas
✔✔The adjuster must always do which of the following regarding claims practices? -
✔✔Investigate the claim
✔✔The condition that provides a means to settle the amount of a loss when the insured
and the insurance company cannot agree is? - ✔✔The appraisal condition.
✔✔What is the split limit in the State of Texas? - ✔✔30/60/25
✔✔In Texas, coverage may be purchased with? - ✔✔Split limits or combined single
limits
, ✔✔$60,000? - ✔✔The most BI liability paid as a result of any one accident, regardless
of the number of BI claims
✔✔$25,000? - ✔✔The most PD liability that will be paid for any one accident.
✔✔##/##/## - ✔✔BI-any one person/BI-for the whole accident/Property Damage for any
one accident
✔✔What is the out-of-state clause? - ✔✔If the insured is involved in a accident in a
state that requires higher financial responsibility limits than Texas does, the policy will
be interpreted to provide the higher limit.
✔✔What is combined-single-limit? - ✔✔CSL combines the two per accident figures
stated previously. It does not distinguish between BI and PD liability.
✔✔Persons insured include? - ✔✔Named insured
Resident Spouse
Resident Relatives
*Any person driving an insured car with the insured's or spouse's permission.
✔✔Liability Coverage provides coverage for? - ✔✔Bodily injury(BI) and property
damage (PD) for which any insured becomes legally responsible because of an auto
accident.
✔✔What is P.I.P? - ✔✔Personal Injury Protection
✔✔What is UM coverage? - ✔✔Uninsured motorist.
✔✔What is UIM coverage? - ✔✔Underinsured Motorist Coverage.
✔✔Uninsured motorist (UM) coverage applies to? - ✔✔A hit-and-run driver is
considered to be uninsured.
UM coverage pays for the compensatory BI and PD's for which the insured is legally
entitled but unable to collect from the at-fault driver.
✔✔What does Part D of auto insurance cover? - ✔✔This is coverage purchased by the
insured to indemnify for physical losses that have occurred to an insured's car.
✔✔Dwelling Policy Form - ✔✔Structures where the actual owners live daily. This is also
a mono-line policy. This only insures the property.
✔✔Home owner policy form - ✔✔Structures where the actual owners do NOT live there.
Think "Land Lords"
ANSWERS GUARANTEE A+ 2025/2026
✔✔What is Subrogation? - ✔✔Is the transfer by the insured by to the insurance
company of the legal right of the insureds' right of recovery against the party that
caused the harm.
*Only after insurer has paid first party*
✔✔When does a claim go to Arbitration? - ✔✔Dispute over weather or not a claim is
valid.
✔✔If there is a total loss by fire in the state of Texas? - ✔✔requires insurer pay the face
amount immediatly (limited to the value of the structure ONLY)
✔✔Intangible Damages - ✔✔Non-economic, general damages including pain and
suffering and mental anguish
✔✔Why is negotiation important? - ✔✔Negotiation is a critical factor in meeting a
companies goals.
To promptly, fairly, and accurately settle a claim.
✔✔When the insurer and the insured cannot agree on the value of a loss, the matter is
submitted to disinterested parties for resolution. Under a standard appraisal clause, how
many parties are involved in determining the value of the loss? - ✔✔3 Parties
✔✔What legal principles allows insurance companies to collect from the party at fault? -
✔✔Subrogation
✔✔Arbitration involves what type of issue? - ✔✔Coverage Issues
✔✔To whom might an insured abandon her property to be paid for a total loss? -
✔✔Abandonment is not allowed in Texas
✔✔The adjuster must always do which of the following regarding claims practices? -
✔✔Investigate the claim
✔✔The condition that provides a means to settle the amount of a loss when the insured
and the insurance company cannot agree is? - ✔✔The appraisal condition.
✔✔What is the split limit in the State of Texas? - ✔✔30/60/25
✔✔In Texas, coverage may be purchased with? - ✔✔Split limits or combined single
limits
, ✔✔$60,000? - ✔✔The most BI liability paid as a result of any one accident, regardless
of the number of BI claims
✔✔$25,000? - ✔✔The most PD liability that will be paid for any one accident.
✔✔##/##/## - ✔✔BI-any one person/BI-for the whole accident/Property Damage for any
one accident
✔✔What is the out-of-state clause? - ✔✔If the insured is involved in a accident in a
state that requires higher financial responsibility limits than Texas does, the policy will
be interpreted to provide the higher limit.
✔✔What is combined-single-limit? - ✔✔CSL combines the two per accident figures
stated previously. It does not distinguish between BI and PD liability.
✔✔Persons insured include? - ✔✔Named insured
Resident Spouse
Resident Relatives
*Any person driving an insured car with the insured's or spouse's permission.
✔✔Liability Coverage provides coverage for? - ✔✔Bodily injury(BI) and property
damage (PD) for which any insured becomes legally responsible because of an auto
accident.
✔✔What is P.I.P? - ✔✔Personal Injury Protection
✔✔What is UM coverage? - ✔✔Uninsured motorist.
✔✔What is UIM coverage? - ✔✔Underinsured Motorist Coverage.
✔✔Uninsured motorist (UM) coverage applies to? - ✔✔A hit-and-run driver is
considered to be uninsured.
UM coverage pays for the compensatory BI and PD's for which the insured is legally
entitled but unable to collect from the at-fault driver.
✔✔What does Part D of auto insurance cover? - ✔✔This is coverage purchased by the
insured to indemnify for physical losses that have occurred to an insured's car.
✔✔Dwelling Policy Form - ✔✔Structures where the actual owners live daily. This is also
a mono-line policy. This only insures the property.
✔✔Home owner policy form - ✔✔Structures where the actual owners do NOT live there.
Think "Land Lords"
