LOMA 291 Exam Questions and Answers With Verified Solutions 2025
What is an ombudsman? - ✔✔An independent, impartial, and confidential professional with expertise in
handling ethics problems
What are the four functions of management? - ✔✔Planning, organizing, directing, and controlling
What is the formula for required rate of return? - ✔✔Risk-free rate + Risk premium = Required Return
What are the three lines of defense in the risk management model? - ✔✔1. Operational management
2. Internal monitoring and oversight
3. Internal Audit
What is omnichannel distribution? - ✔✔Distribution that enables personalized sales to customers
through multiple, integrated communication channels.
What is a trail commission? - ✔✔A percentage of an annuity's accumulated value paid periodically,
usually annually, to the financial professional that sold the annuity.
What is churning? - ✔✔A prohibited sales practice that occurs when a financial professional induces a
client to replace one policy after another, multiple times, so that the financial professional can earn a
series of first-year commissions on the replacements.
What is twisting? - ✔✔A prohibited sales practice that occurs when a financial professional
misrepresents the features of a policy to induce the customer to replace an existing policy.
What is rebating? - ✔✔A sales practice, prohibited in most jurisdictions, in which an insurance financial
professional offers a prospect an inducement, such as a cash payment, to purchase a life insurance
policy or an annuity contract, and the inducement is not offered to all applicants in similar situations and
is not stated in the policy itself.
What is an ombudsman? - ✔✔An independent, impartial, and confidential professional with expertise in
handling ethics problems
What are the four functions of management? - ✔✔Planning, organizing, directing, and controlling
What is the formula for required rate of return? - ✔✔Risk-free rate + Risk premium = Required Return
What are the three lines of defense in the risk management model? - ✔✔1. Operational management
2. Internal monitoring and oversight
3. Internal Audit
What is omnichannel distribution? - ✔✔Distribution that enables personalized sales to customers
through multiple, integrated communication channels.
What is a trail commission? - ✔✔A percentage of an annuity's accumulated value paid periodically,
usually annually, to the financial professional that sold the annuity.
What is churning? - ✔✔A prohibited sales practice that occurs when a financial professional induces a
client to replace one policy after another, multiple times, so that the financial professional can earn a
series of first-year commissions on the replacements.
What is twisting? - ✔✔A prohibited sales practice that occurs when a financial professional
misrepresents the features of a policy to induce the customer to replace an existing policy.
What is rebating? - ✔✔A sales practice, prohibited in most jurisdictions, in which an insurance financial
professional offers a prospect an inducement, such as a cash payment, to purchase a life insurance
policy or an annuity contract, and the inducement is not offered to all applicants in similar situations and
is not stated in the policy itself.
