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LOMA 291 Module 2 Exam with complete solutions
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LOMA 291 Module 2 Exam with complete solutions
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LOMA 291 Module 2 Exam with completesolutions
Omnichannel distribution - Answer -A form of distribution that enables personalized sales to customers through multiple, integrated communication channels.
Common ways to engage with customers - Answer -- Face to Face
- Phone
- Direct Mail or Email
- Online
- Print and Broadcast Media
- Worksite Marketing
- Location Selling
Face to Face - Answer -Financial professionals commonly meet face-to-face with potential customers, often referred to as prospects. Financial professionals follow a fairly typical sales process during a series of meetings.
During these face-to-face meetings, the financial professional:
Identifies the prospect's financial needs
Develops a proposal that recommends one or more insurance products to meet the identified needs
Presents the proposal to the prospect in hopes of completing a sale
If the sale is successful, assists the customer in applying for the product, submits the application to the insurer, and, in some instances, delivers the policy to the customer
Prospects - Answer -A potential customer for an insurer's products or services.
Phone - Answer -Insurers and financial professionals can use telephones to share information with customers and prospects. Sometimes, the customer will initiate the contact...
Direct Mail or Email - Answer -An insurer or financial professional using direct mail or email distributes insurance sales materials through a mail service directly to a list of prospective customers. These mailings can be physical letters, brochures, or flyers mailed to the prospect or emails sent to a distribution list. The target market for direct mail might be readers of a particular publication or holders of a particular credit card.
For paper mail, the sales materials usually consist of an introduction letter, a brochure that describes a particular product, an insurance or annuity application, or an inquiry form the customer can use to request further information about the product. For email, the insurer provides links to similar items on the insurer's website.
Online - Answer -Most insurers' websites provide information and self-service options and promote products that can satisfy needs. Insurers also advertise their products through third-party websites and social media. Consumers using these websites may contact the company by telephone, email, or web chat to ask questions or purchase a product. Often, insurers put these consumers in contact with a financial professional.
Financial professionals may also use websites and social media to engage with customers directly.
Print and Broadcast Media - Answer -An insurer or financial professional may use printed publications, such as magazines or newspapers, to describe a particular product
and generate interest in that product. Insurers can try to reach a particular target market
by printing advertisements in newspapers in certain geographical areas or in magazines
that appeal to certain demographics. For example, an advertisement for an annuity product designed for people age 62 or older might appear in a magazine for retired people.
An insurer can use radio, television, or video streaming sites to disseminate an advertising message over a wide area to a large, generally undifferentiated audience. However, selecting certain programs or times of the day in which to advertise does allow an insurer some selectivity. For example, a life insurance product might be advertised on television between the hours of 8 and 10 p.m. when newly married couples or young parents are likely watching television.
Worksite Marketing - Answer -Financial professionals sometimes engage in worksite marketing to distribute voluntary benefits. Usually, the employer collaborates with the financial professional to promote voluntary benefits to employees.
Examples of voluntary benefits
include:
Life insurance
Disability insurance
Accident insurance
Critical illness insurance
Long-term care insurance
ID theft protection
Legal services
Financial counseling Worksite Marketing definition - Answer -A method for distributing voluntary benefits to people at their place of work.
Voluntary Benefits - Answer -Individual or group insurance or other financial products offered through an employer, but paid for by the covered employee, usually through payroll deduction.
Location selling - Answer -Some insurance companies also sell insurance products through a method known as location-selling. These locations can be staffed by a financial professional or offer self-service options for customers.
Location-selling systems may be located in businesses such as department stores, big box stores, grocery stores, and funeral homes.
Location selling system - Answer -A method for distributing insurance products that is designed to generate customer-initiated sales at an office or information kiosk in a store,
shopping mall, or other non-insurance business establishment.
Which of the following enables personalized sales to customers through multiple, integrated communication channels?
a. Omnichannel distribution
b. Worksite marketing
c. Location-selling - Answer -A. - Omnichannel distribution is the term generally used for
distribution that enables personalized sales to customers through multiple, integrated communication channels.
Which of the following are examples of products that can be offered as voluntary benefits? Choose all that apply.
Life insurance
Disability income insurance
Accident insurance
Critical illness insurance
Long-term care insurance - Answer -All of them- All of the above benefits are examples of voluntary benefits. Some financial professionals engage in worksite marketing to distribute these benefits.
Submit
The first step in a series of face-to-face meetings with a prospect is for the financial professional to present the proposal in hopes of completing the sale.
a. True
b. False - Answer -B. - One of the first steps in engaging face-to-face with a prospect is for the financial professional to identify the prospect's financial needs. A competent and ethical financial professional normally would not present a proposal without first understanding the prospect's needs. distribution systems - Answer -The method an insurance company uses to connect its products or services with the potential customers who might want or need them.
Direct distribution system - Answer -A distribution system in which the insurance company owns the distribution system and communicates directly with the customer.
Intermediary distribution system - Answer -A system in which the insurance company relies on external individuals and organizations to connect with the customer.
direct sales force - Answer -Financial professionals directed by an insurer who distribute
the insurer's products.
agent - Answer -A company employee or independent contractor who is authorized to act on behalf of an insurance company in selling insurance products.
agency contract - Answer -A written agreement that outlines the agent's role and responsibilities and the agent's compensation.
Career agent - Answer -An agent who is under a full-time contract with an insurer to sell
primarily that insurance company's life, health, and annuity products. Also known as a captive agent.
Multiple-line exclusive agents (MLEAs) - Answer -An agent who sells life insurance, health insurance, annuities, and property-casualty products for one insurance company,
with the majority of sales being property-casualty products.
salaried sales representatives - Answer -A company employee who is paid a salary for making insurance sales and providing sales support.
group representatives - Answer -Salaried insurance company employees specifically trained in the techniques of marketing and servicing group products.
direct to consumer (D2C) sales - Answer -Non-face-to-face distribution programs directed by the insurance company.
response rate - Answer -The percentage of targeted customers who respond to a direct-
to-consumer sales approach.
Companies use different types of professionals to sell their products. Can you distinguish among them?
Brian Delange maintains his own office where he sells a variety of products—annuities and life, health, and p/c insurance—for XYZ Insurance Group. Brian is a
a. Career agent
b. Multiple-line exclusive agent
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