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LOMA 311 MODULE 1 EXAM WITH QUESTIONS AND CORRECT ANSWERS
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LOMA 311 MODULE 1 EXAM WITHQUESTIONS AND CORRECT ANSWERS
correct/False: Administrative law is made up of regulations - ANSWER This
statement is correct. Administrative law is a body of legislation composed of
regulations, and each governmental unit's regulations are put into its administrative
code.
The life insurance sector is so important to so many individuals that it enjoys a
unique level of public trust. Millions of families rely on life insurance and annuity
products to save money and protect themselves from the hazards of dying
prematurely or outliving their assets. Furthermore, the reserves kept by life insurers
are one of the major sources of private funds in the global financial markets.
Stakeholders are the parties who have an interest in how the company does
business.
The stakeholders of a life insurance firm include stockholders (for stock
companies), the board of directors, executives, managers, workers, agents, potential
customers, policy owners, beneficiaries, annuity participants, and regulators,
among others.
Governments rely on the legal system to enact specialized insurance laws and
regulations that protect the public trust. Furthermore, in a business as sophisticated
and essential as the life insurance sector, mistakes and disagreements occur, and the
parties frequently turn to the legal system to resolve issues.
A legal system has two key components: - ANSWER 1. Laws and rules that govern
conduct
2. Legal processes are used to enforce laws and regulations. Laws and regulations
establish principles and standards to enable individuals, groups, and governments
to interact in an orderly manner. The legal process is used to resolve disputes,
provide remedies for victims, and punish those who violate laws.
,The legal system allows individuals and organizations to predict the effects of their
actions with some confidence, manage affairs with a minimum of friction, and
resolve conflicts equitably.
ANSWER: Contract law affects how life insurance conducts business.
- Agency Law
- Property Law
Insurers must take care to avoid fines, lawsuits, and unwanted publicity, which can
hurt the company's brand and earnings.
Business Law for Insurance Professionals - ANSWER gives a basic knowledge of
the legal system as well as legal and regulatory concerns specific to the life
insurance sector.
Sources of law: ANSWER 1. Constitutions
2. Statutes
3. Administrative Regulations
4. Treaties and international accords. In many countries, including the United
States, another main source of law is case law generated by the courts.
Constitution - ANSWER A document or series of documents that establishes the
fundamental principles that regulate the powers and obligations of governments as
well as the rights of citizens. It is a fundamental component of a country's legal
system, designed to be a relatively permanent and primary source of law. A
constitution is often regarded as the supreme law of the land. Any laws deemed to
violate a country's constitution are generally considered invalid.
- The constitution establishes the organizational structure of the government.
,- The US Constitution creates a system of checks and balances. helps to prevent the
concentration of power in one branch.
Three duties that governments perform - ANSWER 1. Create laws.
2. Administer and enforce the laws.
3. Resolve disagreements
Three branches of government - ANSWER: legislative branch.
- Executive Branch
- Judicial Branch
The legislative branch consists of one or more legislative bodies, commonly known
as the legislature or parliament, that are in charge of enacting laws to regulate the
applicable jurisdiction.
- Create laws.
The executive branch consists of a system of administrative agencies--often
referred to as departments or ministries--that are in charge of administering,
enforcing, or carrying out the jurisdiction's laws.
- enforce the law.
The judicial branch of ANSWER comprises of a system of courts that are
responsible for applying and interpreting the jurisdiction's laws and resolving
disputes; additionally, several nations support alternative dispute resolution
options.
- Interpret the laws.
, Parliamentary democracies - ANSWER The legislative part of government,
sometimes referred to as parliament, has ultimate authority to make all laws.
ex- Britain, India, and Singapore.
The executive branch is led by the prime minister.
The prime minister is the leader of the political party (or coalition of parties) that
controls the majority of elected seats in parliament. Upon taking office, the prime
minister appoints a cabinet of advisors.
- The executive branch retains power as long as parliament is confident in its
leadership; if voted out, a new election will be held.
ANSWER: A federal government and a number of lower-level governments share
governmental powers. In other words, a group of sovereign states are unified as a
nation.
- The US is a federation of 50 states.
- The federal constitution is the highest law, and all other legislation must be
consistent.
- Every state has one. The constitution must be congruent with the federal
constitution.
States are responsible for a variety of functions, such as regulating commerce and
professions inside their boundaries, providing public education, and preserving
people's health and safety. States assign some of their governmental authority to
local governmental bodies such as counties and municipalities.
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