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LOMA 280 EXAM WITH ALL QUESTIONS AND ANSWERS
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LOMA 280 EXAM WITH ALL QUESTIONS AND ANSWERS ...
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LOMA 280 EXAM WITH ALL QUESTIONS AND ANSWERS 401K Plan - ANSWER In the United States, a type of savings plan that allows employees to make contributions on a pre tax basis. (12) absolute assignment - ANSWER An assignment of a life insurance policy under which the policy owner transfers all of his policy ownership rights to the assignee. Contrast with collateral assignment. (9) accelerated death benefit - ANSWER A supplemental life insurance policy benefit which provides that a policy owner may elect to receive all or part of the policy's death benefit before the insured's death if certain conditions are met. Also known as a living benefit (7) acceptance - ANSWER The offeree's unqualified agreement to be bound to the terms of the offer (3) accidental death and dismemberment (AD&D) benefit - ANSWER A supplemental life insurance policy benefit that provides an accidental death benefit and provides a dismemberment benefit payable if an accident causes the insured to lose any two limbs or sight in both eyes (7) accidental death benefit - ANSWER A supplemental life insurance policy benefit that provides a death benefit in addition to the policy's basic death benefit if the insured dies as a result of an accident (7) accumulated value - ANSWER During a deferred annuity's accumulation period, the amount paid for the deferred annuity, plus the investment earnings, minus the amount of any withdrawals and fees. Also known as accumulation value or income value. accumulation period - ANSWER The period between the contract owner's purchase of a deferred annuity and the beginning of the payout period.(10) actively- at-work provision - ANSWER a group insurance policy provision which states that, in order to be eligible for coverage, an employee must be actively at work rather than ill or on leave on the day the insurance coverage is to take effect (11) accumulation at interest dividend option - ANSWER A policy dividend option under which the policy dividends are left on deposit with the insurer to accumulate at interest. (9) activities of daily living (ADLs) - ANSWER The activities of eating, bathing, dressing, continence, toileting, or transferring into or out of a be, chair, or wheelchair. (1 3) antiselection - ANSWER The tendency of individuals who believe they have a greater than likelihood of loss to seek insurance protection to a greater extent than do other individuals. Also known as adverse selection or selection against the insurer (1) applicant - ANSWER The person or business that applies for an insurance policy (1) asset - ANSWER An item of value that a company owns. Examples of assets include cash buildings, and investments. (2) assignee - ANSWER The party to whom life insurance property rights are transferred. (9) assignment - ANSWER An agreement under which an insurance policy owner transfers some or all of his ownership rights in the policy to another party (9) assignment provision - ANSWER A life insurance policy provision which describes the roles of the insurer and the policy owner when the policy is assigned. (9) assignor - ANSWER The policy owner who makes an assignment of a life insurance policy (9) attachment point - ANSWER For stop loss insurance, the total dollar amount of claims that the employer must pay within a stated period of time before the stop loss insurer begins to reimburse the employer. Sometimes referred to as the aggregate deductible (14) attained age - ANSWER The age an insured has reached (attained) on a specified date (5) attained age conversion - ANSWER A conversion of a term life insurance policy to a cash value life insurance policy in which the premium rate for the case value policy is based on the insured's age at the time the policy is converted. Contrast with original age conversion (5) automatic dividend option - ANSWER A specified policy dividend option that the insurer will apply if the policy owner deos not choose an option (9) automatic nonforfeiture benefit - ANSWER A specified policy dividend option that the insurer will apply if a policy owner does not choose an option (8) automatic premium loan (APL) option - ANSWER A cash value life insurance policy non-forfeiture option under which the insurer will automatically pay an overdue premium for the policy owner by making a loan against the policy's cash value as long as the cash value equals or exceeds the amount of the premium due (8) back-end sales charge - ANSWER An amount charged to an annuity contract owner when she withdraws money from a contract. Also known as a surrender charge (10) actuarial assumption - ANSWER The assumed values used in the financial design of a product (4) actuary - ANSWER An expert in financial risk management and the mathematics and modeling of insurance, annuities and financial instruments (4) additional term insurance dividend option - ANSWER A policy dividend option under which the insurer uses each policy dividend to purchase one year term insurance on the insured's life (9) administrative services only (ASO) contract - ANSWER A contract under which an insurer or other organization agrees to provide some or all administrative services for a self insured group health insurance plan (14) aggregate stop loss insurance - ANSWER Stop loss insurance under which the stop loss insurer begins to reimburse the employer for claims when the employer's total claims exceed a stated dollar amount within a stated period of time (14) aleatory contract - ANSWER A contract under which one party provides something of value to another party in exchange for a conditional promise. Contrast with commutative contract (3) allowable expenses - ANSWER Those reasonable and customary expenses that an insured incurred and that are covered under the insured's group medical expense plans (14) Annual Statement - ANSWER An accounting report which every U.S. insurer prepares each calendar year and files with the insurance department in each state in which it operates. (2) annuitant - ANSWER The person whose lifetime is used to determine the amount of benefits payable under an annuity contract. (10) annuity - ANSWER a series of periodic payments(10) 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 series of premiums (10) annuity period - ANSWER The time span between each of the payments in the series of periodic annuity payments (10) bargaining contract - ANSWER A contract in which both parties, asThe benefits of buying summaries with Stuvia:
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