Loma 281 module 1 l - Study guides, Class notes & Summaries

Financial services industry - ANSWER An industry in which financial institutions help people, businesses, and governments with their asset accumulation, asset management, and asset protection needs Financial institutions - ANSWER A business that owns primarily financial assets, such as stock and bonds, rather than fixed assets, such as equipment and raw materials Depository institution - ANSWER A financial institution that specializes in accepting deposits and making loans

LOMA 281 Module 1 Lesson 1 Exam Questions and Answers

LOMA 281 Module 1 Lesson 1 well answered to pass

Insurance policy - ANSWER A legally enforceable contract between a policyowner who applies for and owns the policy and the insurer that issues the policy Unilateral contract - ANSWER A contract in which only one of the parties makes a legally enforceable promise when entering into the contract. (life insurance) Bilateral contract - ANSWER A contract in which both parties make legally enforceable promises when they enter into the contract

LOMA 281 Module 1 Lesson 1 Questions And Answers Latest |Update| Verified Answers

Risk The Possibility of an unexpected result; could be a loss or gain Speculative Risk 3 possible outcomes: Loss, gain, or no change ex. buying stock Pure Risk No possibility of a gain ex. people dying after they buy stock Is speculative or pure risk insured? Only pure risk Steve is too nervous about losing money in the stock market, so he doesnt invest in stocks. This is an example of Avoiding Risk Mark uses a laptop computer in his business. If he loses the laptop or accidentally damage...

Loma 281 Module 1 Lesson 1 Exam Questions and Answers

Assume you are applying for a life insurance policy. During his presentation, the insurance agent makes the following statements. Are they all true? (Select all that apply) A. People buy insurance to reduce the financial risk they face, but not every type of risk is insurable. B. Both pure risks and speculative risks are insurable. C. Most life insurance policies are valued contracts, which state at the time of policy issue the amount of the benefit payable when the insured person dies. D. Most...

LOMA 281 Module 1 Lesson 2 Questions And Answers Latest |Update| Verified Answers

LOMA 281 Module 1 Lesson 3 Exam