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USAA Licensing Exam 2026 Actual Complete Real
Verified Exam Questions with verified Answers (100%
Correct Answers) Already Graded A+ / Newest Exam!!!
What is the consideration given by an insurer in the
Consideration clause of the life policy? - Answer-Promise
to pay a death benefit to a named beneficiary
Who makes the legally enforceable promises in a
unilateral insurance policy? - Answer-insurance company
All of the following are considered to be typical
characteristics describing the nature of an insurance
contract, EXCEPT: - Answer-bilateral
At what point does an informal contact become binding? -
Answer-When one party makes an offer and the other
party accepts that offer.
Which of these arrangements allows one to bypass
insurable interest laws? - Answer-Investor-Originated Life
Insurance
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Taking receipt of premiums and holding them for the
insurance company is an example of - Answer-fiduciary
responsibility
Life and health insurance policies are: - Answer-unilateral
contracts
What type of life insurance gives the greatest amount of
coverage for a limited period of time? - Answer-Term life
Which type of life policy contains a monthly mortality
charge as well as self-directed investment choices? -
Answer-Variable Universal Life
T has a term policy that allows him to continue the
coverage after expiration of the initial policy period. What
type of term coverage is this? - Answer-renewable
Which of the following policies is characterized by a
flexible premium and death benefit and allows the
policyowner control of the investment aspect of the plan? -
Answer-Variable universal life
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What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - Answer-treaty
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a - Answer-risk retention group
What is the name of the law that requires insurers to
disclose information gathering practices and where the
information was obtained? - Answer-Fair Credit Reporting
Act
The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders is called: - Answer-reserves
A nonprofit incorporated society that does not have capital
stock and operates for the sole benefit of its members is
known as: - Answer-fraternal benefit society
If a contract of adhesion contains questionable language,
to whom would the interpretation be in favor of? - Answer-
insured
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What is a warranty? - Answer-is a statement guaranteed
to be true
A policy of adhesion can only be modified by whom? -
Answer-insurance company
Stranger Originated Life Insurance (STOLI) has been
found to be in violation of which of the following
contractual elements? - Answer-Legal Purpose (Insurable
Interest)
Which of these is considered a statement that is assured
to be true in every respect? - Answer-warranty
Which of these is NOT a type of agent authority? -
Answer-principal
The Consideration clause of an insurance contract
includes: - Answer-the schedule and amount of premium
payments
USAA Licensing Exam 2026 Actual Complete Real
Verified Exam Questions with verified Answers (100%
Correct Answers) Already Graded A+ / Newest Exam!!!
What is the consideration given by an insurer in the
Consideration clause of the life policy? - Answer-Promise
to pay a death benefit to a named beneficiary
Who makes the legally enforceable promises in a
unilateral insurance policy? - Answer-insurance company
All of the following are considered to be typical
characteristics describing the nature of an insurance
contract, EXCEPT: - Answer-bilateral
At what point does an informal contact become binding? -
Answer-When one party makes an offer and the other
party accepts that offer.
Which of these arrangements allows one to bypass
insurable interest laws? - Answer-Investor-Originated Life
Insurance
,2|Page
Taking receipt of premiums and holding them for the
insurance company is an example of - Answer-fiduciary
responsibility
Life and health insurance policies are: - Answer-unilateral
contracts
What type of life insurance gives the greatest amount of
coverage for a limited period of time? - Answer-Term life
Which type of life policy contains a monthly mortality
charge as well as self-directed investment choices? -
Answer-Variable Universal Life
T has a term policy that allows him to continue the
coverage after expiration of the initial policy period. What
type of term coverage is this? - Answer-renewable
Which of the following policies is characterized by a
flexible premium and death benefit and allows the
policyowner control of the investment aspect of the plan? -
Answer-Variable universal life
,3|Page
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - Answer-treaty
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a - Answer-risk retention group
What is the name of the law that requires insurers to
disclose information gathering practices and where the
information was obtained? - Answer-Fair Credit Reporting
Act
The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders is called: - Answer-reserves
A nonprofit incorporated society that does not have capital
stock and operates for the sole benefit of its members is
known as: - Answer-fraternal benefit society
If a contract of adhesion contains questionable language,
to whom would the interpretation be in favor of? - Answer-
insured
, 4|Page
What is a warranty? - Answer-is a statement guaranteed
to be true
A policy of adhesion can only be modified by whom? -
Answer-insurance company
Stranger Originated Life Insurance (STOLI) has been
found to be in violation of which of the following
contractual elements? - Answer-Legal Purpose (Insurable
Interest)
Which of these is considered a statement that is assured
to be true in every respect? - Answer-warranty
Which of these is NOT a type of agent authority? -
Answer-principal
The Consideration clause of an insurance contract
includes: - Answer-the schedule and amount of premium
payments
