LOMA 281 Exam Questions with Correct Answers

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 actual amount of the financial loss that results from a covered event when it occurs, subject to maximum limits (other than life insurance) Valued Contract - Answer-life insurance policies which state the benefit payable at the time of the policy issue Retrocessionaire - Answer-The reinsurer that assumes all or part of the reinsurance risk accepted by another reinsurer Stock Insurer - Answer-- 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 Mutual Insurer - Answer-- owned by policyowners - policyowners have membership rights (voting rights) - policyowners may periodically receive an amount of money known as a policy dividend Fraternal Benefit Society - Answer-- owned by members of fraternal lodge system - provides social and insurance benefits only to fraternal members of their families - legally required to have a representative form of government Solvency Regulation - Answer--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