Hey CA,
I used to work at USAA in the onboarding department, so we'd handle new members with insurance, banking, credit cards, etc. A new member to USAA meant no active products on the books, so we'd occasionally get the returning member who had products in the past call back in and they'd still come to my department. We had what we called internal "CAD" codes on the account, I think CAD stood for Corporate Accounts Declined. Most CAD codes were "Uncollected" meaning they had an insurance policy with us, it NPCed (non-paid cancellation). We could still quote insurance but we couldn't issue until that balance was paid, plus any new requirements for the new policy, 10% down, 50% down, or the dreaded PIF (pay-in-full). Those weren't fun phone calls... The nice thing was USAA never sent unpaid insurance to collections or even reported to one's credit report.
Another more common CAD code was they owed the bank money. We couldn't really handle those, even though my department was trained to open new checking/savings/credit cards, we didn't service those accounts. Those codes were from a bank account that got overdrawn, credit card defaulted, etc. A completely useless side note, most states we could refuse to quote insurance let alone issue insurance until the bank monies were paid. However, in some states, I think they called it collateral business states, we could not refuse to issue an insurance policy just because they owed the bank side of the house money, weird right?
Bankruptcy was a CAD code, but only if USAA was IIB. Those we could still do insurance, but we could not open new banking accounts, we were also not supposed to solicit any business other than what the member called in about. If you called about an auto quote, that's all we would do. If you wanted an Auto and Homeowners quote, same thing, we weren't supposed to mention any other insurance product that was not directly and specifically requested. You could still keep an existing bank account(s) with USAA, but you'd be limited to the mobile version of the website, even from a desktop (weird, maybe to prevent them from trying to open their own accounts, new policies, etc.). A Bankruptcy CAD code was on a member's profile for either 7 or 10 years, I'm blanking on which number it is. 7 would make sense from the credit reporting standard, but for some reason, my first instinct was to the number 10. Anyway, once the time passed, business was back to normal. We didn't even discriminate against hiring those who included USAA in a bankruptcy, in my new hire class, there was a co-worker who had an account with USAA they IIB. As far as I could tell once that 10 years was up you were G2G.
The most interesting CAD codes were "Unacceptable" which usually involved some sort of fraud, typically most Unacceptable codes were a false claim, insurance fraud, etc. Those were the only permanent blacklisting that USAA would do. You'd typically have to mess up real bad, but we'd still see them come across every now and then...
Sorry for the long version, but I hope that answers your questions. Any other random USAA questions let me know, if I can't answer it, I am still friends with a lot of my former co-workers 
Oz