LOMA 281 Exam Questions with Correct Answers 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 actua...
LOMA 281 Questions And Correct Answers 20242025(GRADED A+).pdf file:///C:/Users/Pavilion/Downloads/LOMA%20281%20%20Questio
LOMA 281 Questions And Correct Answers
2024/2025(GRADED A+)
1. waiver of premium for payor benefit: insurer waives renewal premiums if the
policy owner, rather than the insured, dies or becomes totally disabled (must
provideevidence of insurability)
2. 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)
3. Valued Contract: life insurance policies which state the benefit payable at the
time of the policy issue
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,LOMA 281 Questions And Correct Answers 20242025(GRADED A+).pdf file:///C:/Users/Pavilion/Downloads/LOMA%20281%20%20Questio
4. Retrocessionaire: The reinsurer that assumes all or part of the reinsurance risk
accepted by another reinsurer
5. Stock Insurer: - can issue shares of stock
- owned by stockholders, who have voting rights in the company
- stockholders may receive shares of operating profits known as stock dividends
6. Mutual Insurer: - owned by policyowners
- policyowners have membership rights (voting rights)
- policyowners may periodically receive an amount of money known as a policy
dividend
7. Fraternal Benefit Society: - owned by members of fraternal lodge system
- provides social and insurance benefits only to fraternal members of their families
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- legally required to have a representative form of government
8. Solvency Regulation: -assets must be sufficient to offset liabilities
-calculation of reserves
-premium to surplus ratio
-investment types and quality
-annual statement must be filed
-guaranty funds
9. Market Conduct Regulation: Regulation of the practices of insurers in regard
to four areas of operation: sales practices, underwriting practices, claims practices,
and bad-faith actions.
10. McCarran-Ferguson Act: states that while the federal government has author-
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ity to regulate the insurance industry, it would not exercise its right if the
insuranceindustry was regulated effectively and adequately on the state level.
11. Dodd-Frank Act: Created the Federal Insurance Office (FIO) with authority to
monitor the insurance industry
12. The Life and Health Insurance Guaranty Association: State's association
covers the company's benefits up to state-mandated maximums (usually up to
$300k) should the insurance company go insolvent
13. Unilateral Contract: contract in which only one party makes a legally enforce-
able promise when entering into the contract
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