LOMA 281 EXAM BUNDLE100% Correct!!

Risk - ANSWER the possibility of an unexpected result. Premium - ANSWER A specified amount of money an insurer charges in exchange for its agreement to pay a policy benefit when a specific loss occurs. Insurance company - ANSWER A company that provides protection against the risk of financial ...

Which type of whole life insurance policy will best be able to give Arabella lifetime protection without straining her retirement income? Single-premium whole life policy Limited-payment whole life policy Continuous-premium whole life policy - ANSWER B Financial needs life insurance can meet...

waiver of premium for payor benefit - ANSWER insurer waives renewal premiums if the policy owner, rather than the insured, dies or becomes totally disabled (must provide evidence of insurability) Contracts of Indemnity - ANSWER base benefits on the actual amount of the financial loss that results...

Term Life insurance - ANSWER Insurance that provides a policy benefit if the insured dies during a specified period of time. Policy term - ANSWER The specified period of time for which a term life insurance policy provides coverage. Level Term life insurance - ANSWER A plan of term life insura...

What are speculative risks? - ANSWER Risks that involve three outcomes: loss, gain, or no change What are pure risks? - ANSWER Risks that involve no possibility of gain What risks are insurable? - ANSWER Only pure risks Speculative risks involve the possibility of gain so they cannot be ins...

Risk - ANSWER the possibility of an unexpected loss speculative risk - ANSWER can result in a gain, a loss four risk management techniques - ANSWER avoid the risk control the risk accept the risk transfer the risk Parties involved in insurance transaction - ANSWER applicant policyowner i...

Insurance policy - ANSWER A legally enforceable contract between a policyowner who applies for and owns the policy and the insurer that issues the policy Unilateral contract - ANSWER A contract in which only one of the parties makes a legally enforceable promise when entering into the contract. (...

Waiver of premium for disability (WP) Benefit - ANSWER A supplemental life insurance policy benefit under which the insurer promises to give up—to waive—its right to collect premiums that become due while the insured is totally disabled. - satisfies a 3-6 month waiting period: meaning for the f...

Annuity - ANSWER insurance against the risk of outliving one's financial resources annuity contract - ANSWER A contract under which an insurer promises to make a series of periodic payments to a named individual in exchange for a premium or a series of premiums. contract owner - ANSWER The pe...

Assume you're applying for a life insurance policy. During his presentation, the insurance agent makes the following statements. Are they all true? (Select all that apply.) a. People buy insurance to reduce the financial risk they face but not every type of risk is insurable. b. both pure ris...

property - ANSWER A bundle of rights a person has with respect to something. real property - ANSWER Land and whatever is growing on or attached to the land. rights of a life policyowner - ANSWER name the beneficiary, change the beneficiary, transfer ownership to someone else class designati...

Assume that Caryer has life insurance on his own life. Select the box beside each financial need that you think life insurance can meet Paying household expenses (utility bills, food, clothing, etc) Covering outstanding debts (mortgage and car loans, etc) Paying future outstanding medical, hosp...

premiums - ANSWERthe amount paid to the insurer in exchange for the promise to pay benefits when they become due actuaries - ANSWERspecialize in putting a price tag on risk. the risk must be high enough to pay future benefits to customers cover the insurers cost of administering the product ...

Group insurance - ANSWER Life or health insurance coverage for a group of people under one insurance contract Master group insurance contract - ANSWER An insurance contract that insures a number of people Group insured - ANSWER Individual covered by a group policy but is not a party to the gro...