LOMA 291 Module 1 Exam Questions and Answers With Verified Solutions 2025
A party that has an interest in how a company conducts its business. Also known as a constituent. -
✔✔Stakeholders (consituents)
Compensation that a company may pay to owners upon a vote by the company's board of directors. -
✔✔Dividend
We stockholders expect the company to grow steadily. We expect to earn a reasonable return,
sometimes in the form of dividends. Do you know what a dividend is? Sometimes the board of directors
votes to make a payment to the stockholders. The payment is called a dividend. - ✔✔Stockholder
Here are some factors I considered when I chose to buy a policy from Forthright:
Good company reputation
Policy features
Reasonable charges
Financial strength
Customer service
Forthright provides my personal safety net because of their good reputation and policy features. They
charge me for reasonable expenses and they have the financial strength to be around for the long haul
to pay the policy benefits they promise me and my family. So far, I'm pleased with my policy and the
company's customer service. - ✔✔Policy owner
In insurance sales, any individual—including agents, bank-affiliated sales personnel, and brokers—who is
licensed to sell insurance products, solicit sales, or negotiate insurance contracts.
Why do I place business with Forthright? Here are some reasons:
Forthright's products meet my clients' needs.
Forthright offers competitive compensation on the business I sell.
,Its staff is top notch and provides fast and accurate support.
The company has good ratings, so I trust its ability to meet policy obligations in the future. - ✔✔financial
professional
- stockholder
- policyowner
- financial professional
- employee
- reinsurer
- consultants/vendors
- borrowers
- regulators
- rating agencies
- associations
- trade associations - ✔✔key stakeholders
I value the long-term employment.
I enjoy my coworkers.
I'm proud to work for a reputable company.
I appreciate the salary and benefits. - ✔✔employee values
Insurance that one insurance company, known as the direct writer, purchases from another insurance
company, known as the reinsurer, to transfer all or part of the risk on insurance policies that the direct
writer issued. - ✔✔reinsurance
I'm a public accountant. I provide external audit services to Forthright. Many vendors provide goods and
services to Forthright. - ✔✔consultants/vendors example
I'm a real estate developer. To fund construction projects, I borrow from Forthright Financial. Forthright
lends money as one of its investments. They expect to earn a return, so they keep a close eye on me. -
✔✔Borrowers example
,I conduct in-person examinations of insurance companies that do business in my state. I make sure they
comply with regulations and maintain fair business practices. - ✔✔regulators example
I assign a grade to Forthright Financial and other companies. The grade, called a rating, indicates my
company's opinion of Forthright's overall health and stability. - ✔✔rating agencies example
As a Forthright actuary, I belong to several organizations that set professional standards. Forthright
employs many professionals—actuaries, accountants, auditors, attorneys, underwriters, medical
directors, and others. All of these groups have professional associations. - ✔✔associations example
All of them - - ✔✔Select each group which counts among an insurance company's stakeholders.
a. Financial professionals
b. Reinsurance companies
c. Employees
d. Trade associations
e. Owners of company stock
f. Policyowners
D. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"My company provides backup to Forthright on paying its claims."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
, A. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I need prompt handling of my transactions when I make a withdrawal."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
C. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I value having a good job with reliable income and benefits."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
E. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I need Forthright to offer products that meet my clients' needs so that I can earn an income."
a. Policyowner
b. Stockholder
c. Employee
A party that has an interest in how a company conducts its business. Also known as a constituent. -
✔✔Stakeholders (consituents)
Compensation that a company may pay to owners upon a vote by the company's board of directors. -
✔✔Dividend
We stockholders expect the company to grow steadily. We expect to earn a reasonable return,
sometimes in the form of dividends. Do you know what a dividend is? Sometimes the board of directors
votes to make a payment to the stockholders. The payment is called a dividend. - ✔✔Stockholder
Here are some factors I considered when I chose to buy a policy from Forthright:
Good company reputation
Policy features
Reasonable charges
Financial strength
Customer service
Forthright provides my personal safety net because of their good reputation and policy features. They
charge me for reasonable expenses and they have the financial strength to be around for the long haul
to pay the policy benefits they promise me and my family. So far, I'm pleased with my policy and the
company's customer service. - ✔✔Policy owner
In insurance sales, any individual—including agents, bank-affiliated sales personnel, and brokers—who is
licensed to sell insurance products, solicit sales, or negotiate insurance contracts.
Why do I place business with Forthright? Here are some reasons:
Forthright's products meet my clients' needs.
Forthright offers competitive compensation on the business I sell.
,Its staff is top notch and provides fast and accurate support.
The company has good ratings, so I trust its ability to meet policy obligations in the future. - ✔✔financial
professional
- stockholder
- policyowner
- financial professional
- employee
- reinsurer
- consultants/vendors
- borrowers
- regulators
- rating agencies
- associations
- trade associations - ✔✔key stakeholders
I value the long-term employment.
I enjoy my coworkers.
I'm proud to work for a reputable company.
I appreciate the salary and benefits. - ✔✔employee values
Insurance that one insurance company, known as the direct writer, purchases from another insurance
company, known as the reinsurer, to transfer all or part of the risk on insurance policies that the direct
writer issued. - ✔✔reinsurance
I'm a public accountant. I provide external audit services to Forthright. Many vendors provide goods and
services to Forthright. - ✔✔consultants/vendors example
I'm a real estate developer. To fund construction projects, I borrow from Forthright Financial. Forthright
lends money as one of its investments. They expect to earn a return, so they keep a close eye on me. -
✔✔Borrowers example
,I conduct in-person examinations of insurance companies that do business in my state. I make sure they
comply with regulations and maintain fair business practices. - ✔✔regulators example
I assign a grade to Forthright Financial and other companies. The grade, called a rating, indicates my
company's opinion of Forthright's overall health and stability. - ✔✔rating agencies example
As a Forthright actuary, I belong to several organizations that set professional standards. Forthright
employs many professionals—actuaries, accountants, auditors, attorneys, underwriters, medical
directors, and others. All of these groups have professional associations. - ✔✔associations example
All of them - - ✔✔Select each group which counts among an insurance company's stakeholders.
a. Financial professionals
b. Reinsurance companies
c. Employees
d. Trade associations
e. Owners of company stock
f. Policyowners
D. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"My company provides backup to Forthright on paying its claims."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
, A. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I need prompt handling of my transactions when I make a withdrawal."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
C. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I value having a good job with reliable income and benefits."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
E. - ✔✔In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I need Forthright to offer products that meet my clients' needs so that I can earn an income."
a. Policyowner
b. Stockholder
c. Employee
