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LOMA 281 EXAM QUESTIONS AND ANSWERS $10.49   Add to cart

Exam (elaborations)

LOMA 281 EXAM QUESTIONS AND ANSWERS

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  • LOMA 281
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  • LOMA 281

LOMA 281 EXAM QUESTIONS AND ANSWERS

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  • October 29, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • LOMA 281
  • LOMA 281
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GEEKA
LOMA 281 EXAM QUESTIONS AND ANSWERS
What are speculative risks? - Answers- Risks that involve three outcomes: loss, gain, or
no change

What are pure risks? - Answers- Risks that involve no possibility of gain

What risks are insurable? - Answers- Only pure risks

Speculative risks involve the possibility of gain so they cannot be insured

What is a retention limit? - Answers- The maximum amount of risk the insurer is willing
to carry at its own risk

What is a commutative contract? - Answers- The parties agree to exchange specified
items or services that are equal in value

What is an aleatory contract? - Answers- One party exchanges something of value for
the other party's conditional promise

Is a life insurance policy a commutative or aleatory contract? - Answers- Aleatory

Are life insurance contracts bargaining contracts? - Answers- No, they are contracts of
adhesion. The insurance company sets the terms and the applicant can either accept or
reject

Are insurance contracts formal or informal? - Answers- Informal

What are the requirements of a valid contract? - Answers- Mutual assent
Legally adequate consideration
Lawful purpose
Contractual capacity

Which relatives automatically satisfy the requirement of insurable interest? - Answers-
Spouses, children, parents, siblings, grandparents, and grandchildren

What is ROP insurance? - Answers- A form of term life insurance that provides a death
benefit if the insured dies during the term of coverage and promises a return of
premiums if the insured does not die during the term of coverage.

What are the two main elements of cash value life insurance that term life does not
have? - Answers- Lifetime coverage
A savings element

Can a cash value policy with outstanding loans be surrendered? - Answers- Yes, the
surrender value will just be reduced by the amount of any outstanding policy loans

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