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LOMA 281 Module 1 exam questions with complete solution 2024.
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LOMA 281 Module 1 exam questions with complete solution 2024.
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LOMA 281 Module 1 exam questions withcomplete solution 2024
Risk j- jANS✓✓-the jpossibility jof jan junexpected jresult.
Premium j- jANS✓✓-A jspecified jamount jof jmoney jan jinsurer jcharges jin
jexchange jfor jits jagreement jto jpay ja jpolicy jbenefit jwhen ja jspecific jloss joccurs.
Insurance jcompany j- jANS✓✓-A jcompany jthat jprovides jprotection jagainst jthe
jrisk jof jfinancial jloss jcaused jby jspecific jevents.
Life jinsurance j- jANS✓✓-A jtype jof jinsurance junder jwhich jthe jinsurer jpromises
jto jpay ja jdeath jbenefit jupon jthe jdeath jof ja jnamed jperson.
Annuity j- jANS✓✓-A jfinancial jproduct jby jwhich jan jinsurer, jin jreturn jfor
jreceiving ja jpremium, jpromises jto jmake jperiodic jpayments jto ja jnamed jperson
jor jentity.
Applicant j- jANS✓✓-The jperson jor jentity jthat japplies jfor jan jinsurance jpolicy.
Policyowner j- jANS✓✓-The jperson jor jentity jthat jowns jthe jissued jpolicy.
Insured j- jANS✓✓-The jperson jwhose jlife jor jhealth jthe jpolicy jinsures.
Beneficiary j- jANS✓✓-The jperson jnamed jto jreceive jthe jpolicy jbenefit jif jthe
jinsured jevent joccurs.
Third jparty jpolicy j- jANS✓✓-A jpolicy jone jperson jpurchases jthat jinsures jthe jlife
jof janother jperson.
Speculative jrisks j- jANS✓✓-A jrisk jthat jinvolves jthree jpossible joutcomes: jloss,
jgain, jor jno jchange.
Pure jrisk j- jANS✓✓-A jrisk jthat jinvolves jno jpossibility jof jgain; jeither ja jloss
joccurs jor jno jloss joccurs.
Contracts jof jindemnity j- jANS✓✓-Health jinsurance; jAn jinsurance jpolicy junder
jwhich jthe jamount jof jthe jpolicy jbenefit jpayable jfor ja jcovered jloss jis jbased jon
jthe jactual jamount jof jfinancial jloss jthat jresults jfrom jthe jloss, jas jdetermined jat
jthe jtime jof jthe jloss.
, Valued jcontract j- jANS✓✓-Life jinsurance; jAn jinsurance jpolicy jthat jspecifies jthe
jamount jof jthe jpolicy jbenefit jthat jwill jbe jpayable jwhen ja jcovered jloss joccurs,
jregardless jof jthe jactual jamount jof jthe jloss jthe jwas jincurred.
Face jamount j- jANS✓✓-the jamount jof jthe jpolicy jbenefit jlisted jon jthe jfirst jpage
jof ja jlife jinsurance jpolicy.
Law jof jlarge jnumbers j- jANS✓✓-A jtheory jof jprobability jwhich jstates jthat,
jtypically, jthe jmore jtimes jwe jobserve ja jparticular jevent, jthe jmore jlikely jit jis
jthat jour jobserved jresults jwill japproximate jthe j'true' jprobability jthat jthe jevent
jwill joccur.
Reinsurance j- jANS✓✓-Insurance jthat jone jinsurance jcompany, jknown jas jthe
jdirect jwriter, jpurchases jfrom janother jinsurance jcompany, jknown jas jthe
jreinsurer, jto jtransfer jrisk jon jinsurance jpolicies jthat jthe jdirect jwriter jhas
jissued.
Retention jlimit j- jANS✓✓-The jmaximum jamount jof jinsurance jthat jan jinsurer jis
jwilling jto jcarry jat jits jown jrisk jon jany jone jlife. jThe jdirect jwriter jcedes janything
jabove jthat jlimit jto ja jreinsurer jin ja jreinsurance jtransaction jor jthrough jother
jrisk jtransfer jmechanisms.
Direct jwriter j- jANS✓✓-AKA jceding jcompany; jIn ja jreinsurance jtransaction, jthe
jinsurance jcompany jthat jpurchases jreinsurance.
Reinsurer j- jANS✓✓-In ja jreinsurance jtransaction, jthe jcompany jthat jprovides
jreinsurance jto jthe jdirect jwriter.
Retrocessionaire j- jANS✓✓-A jreinsurance jcompany jthat jaccepts jrisk jceded jto jit
jby janother jreinsurance jcompany.
Underwriter j- jANS✓✓-An jinsurance jemployee jwho jis jresponsible jfor jevaluating
jproposed jrisks.
Physical jhazard j- jANS✓✓-A jphysical jcharacteristic jthat jmight jincrease jthe
jlikelihood jof jloss.
Moral jhazard j- jANS✓✓-A jcharacteristic jthat jexists jwhen jthe jreputation,
jfinancial jposition, jor jcriminal jrecord jof jan japplicant jfor jinsurance jor ja
jproposed jinsured jindicates jthat jthe jperson jmay jact jdishonestly jin jthe
jinsurance jtransaction.
Antiselection j- jANS✓✓-AKA jadverse jselection; jThe jtendency jof jindividuals
jwho jbelieve jthey jhave ja jgreater-than-average jlikelihood jof jloss jto jseek
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