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LOMA 281 Exam @ 2024 Latest Update Questions And Answers Graded A+
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LOMA 281 Exam @ 2024 Latest Update Questions And Answers Graded A+...
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LOMA 281 Exam @ 2024 Latest Update QuestionsAnd Answers Graded A+
waiver of premium for payor benefit - Insurer waives renewal premiums if the policy
owner, rather than the insured, dies or becomes totally disabled (subject to evidence of
insurability)
Contracts of Indemnity - Base benefits on the actual amount of the financial loss that
results from a covered event when it occurs, subject to maximum limits (other than life
insurance)
Valued Policy - An agreement that states the amount of benefit payable in case of the life
insurance policy issue
Retrocessionaire - The reinsurer who accepts totally or partially the reinsurance risk
ceded by another reinsurer
Stock Insurer - Can sell stock
Owned by stockholders
Stockholders have voting rights in the company
Stockholders may receive shares of the operating profits in the form of stock dividends
Mutual Insurer - owned by policyowners
policyowners have membership rights, including voting rights
policyowners may periodically receive a sum of money known as a policy dividend
Fraternal Benefit Society - owned by members of fraternal lodge system
provides social and insurance benefits only to fraternal members and their families
,legally required to have a representative form of government
Solvency Regulation - Answer -assets must be adequate to offset liabilities
-calculation of reserves
-premium to surplus ratio
-type and quality of investments
-annual statement must be filed
-guaranty funds
Market Conduct Regulation - Answer Regulation of the practices of insurers in regard to
four areas of operation: sales practices, underwriting practices, claims practices, and
bad-faith actions.
McCarran-Ferguson Act-Answer says though federal government has authority to
regulate the insurance industry, it would not exercise its right if the insurance industry
was regulated effectively and adequately on the state level.
Dodd-Frank Act-Answer Created the Federal Insurance Office FIO with authority to
monitor the insurance industry
Life and Health Insurance Guaranty Association - State's association covers the
company's benefits up to state-mandated maximums-usually up to $300k-if the insurance
company goes insolvent
Unilateral Contract - A contract in which only one party makes a legally enforceable
promise when entering into the contract
Bilateral Contract - Both parties make legally enforceable promises
Comnomutative contract -Answer parties agree to exchange specified items or services
that are equal in value
, Aleatory contract -Answer one party exchanges something of value for the other party's
conditional promise
Bargaining Contract -Answer both parties set the terms and conditions
Contracts of Adhesion -Answer one party sets the contract terms that the other party
must accept or reject outright
Voidable contract- contract that one party may elect to avoid their duties and
responsibilities under the contract, and the other party must abide by the contract terms
Void contact- a contact that is missing one or more of the legal requirements
Mutual Assent- agreement by all parties in the contract on the offer and acceptance of the
terms
Insurable Interest - Answer Any financial interest in life or property such that, if the life or
property were lost or harmed, the insured would suffer financially
Requirement for a valid contract - Answer - mutual assent
- legally adequate consideration
- lawful purpose
- contractual capacity
surrender benefit - Answer the amount of the cash value that a policyowner is entitled to
receive upon surrender of the policy
Cost of benefits - This is total of all the insurer's possible benefit payments times the
probability that each such benefit will be payable
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