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LOMA 281 Module 2 questions with correct answers
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LOMA 281 Module 2 questions with correct answers
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LOMA 281 Module 2Term Life insurance - correct answer ✔✔Insurance that provides a policy benefit if the insured dies
during a specified period of time.
Policy term - correct answer ✔✔The specified period of time for which a term life insurance policy
provides coverage.
Level Term life insurance - correct answer ✔✔A plan of term life insurance that provides a policy benefit
that remains the same over the term of coverage.
Decreasing term life insurance - correct answer ✔✔A plan of term life insurance that provides a policy
benefit that decrease in amount over the term of coverage.
Increasing term life insurance - correct answer ✔✔A plan of life insurance that provides a policy benefit
that starts at one amount and increases by some specified amount or percentage at stated intervals over
the term of coverage.
Mortgage insurance - correct answer ✔✔A plan of decreasing term life insurance designed to provide a
benefit amount that corresponds to the decreasing amount owed on a mortgage loan
Credit life insurance - correct answer ✔✔A type of term life insurance designed to pay the balance due
on a loan if the borrower dies before the loan is paid
Family income coverage - correct answer ✔✔A plan of decreasing term life insurance that provides a
stated monthly income benefit amount to the insured's surviving spouse if the insured dies during the
term of coverage.
Return of premium term insurance - correct answer ✔✔A type of term insurance that provides a death
benefit if the insured dies during the term of coverage and that promises a return of premiums if the
insured does not die during the term of coverage.
, Renewable term insurance - correct answer ✔✔Term life insurance that gives the policyowner the
option to continue the policy's coverage for an additional policy term without providing evidence of
insurability.
Evidence of insurability - correct answer ✔✔Proof that a given person is an insurable risk.
Convertible term insurance - correct answer ✔✔Term life insurance that gives the policyowner the right
to convert the term policy to a cash value life insurance policy without providing evidence of insurability.
Conversion period - correct answer ✔✔The specified period of time following policy issue during which
the owner of a convertible term life insurance policy can convert the coverage to cash value life
insurance.
Original age conversion - correct answer ✔✔A conversion of a term life insurance policy to a cash value
life insurance policy in which the renewal premium rate is based on the insured's age when the original
term life insurance policy was issued.
Cash value life insurance - correct answer ✔✔Insurance that provides life insurance coverage throughout
the insured's lifetime and also provides a savings element.
Cash value - correct answer ✔✔The savings element of a cash value life insurance policy, which
represents the policyowner's ownership interest in the policy.
Policy loan - correct answer ✔✔A loan a policyowner receives from an insurer using the cash value of a
life insurance policy as security.
Cash surrender value - correct answer ✔✔The amount, after adjustments for factors such as policy
loans, that the owner of a cash value life insurance policy is entitled to receive upon surrendering the
policy.
Single premium payment - correct answer ✔✔A type of limited-payment whole life insurance policy that
requires only one premium payment.
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