LOMA 280 TOP QUESTIONS AND
ANSWERS 2026 PRACTICE TEST
QUESTIONS WITH ACCURATE
ANSWERS
◉ speculative risk.
Answer: Three possible outcomes: loss, gain or no change.
◉ pure risk.
Answer: No possibilty of gain; either loss or no loss
◉ risk management.
Answer: Process by which individuals and businesses identify and assess
the risks they face and take measures to eliminate or reduce their
exposure to those risks.
◉ insurer.
Answer: A company that accepts the risk and makes a promise to pay a
policy benefit if a loss does occur.
◉ policy benefit.
Answer: A specific amount of money an insurer agrees to pay under an
insurance policy when a specific loss occurs.
◉ insurance policy.
, Answer: A written document that contains the terms of the agreement
between the insurer and the owner of the policy. Also known as an
insurance contract.
◉ premium.
Answer: A specified amount of money an insurer charges in exchange
for agreeing to pay a policy benefit when a specified loss occurs.
◉ personal risk.
Answer: The risk of economic loss associated with death, poor health,
injury, and outliving one's economic resources.
◉ life and health insurance company.
Answer: A company that issues and sells products that insure against
finanacial losses that result from personal risks such as death, disability,
illness, accident, and outliving one's savings.
◉ life insurance.
Answer: Insurance that pays a benefit upon the death of a named person.
◉ annuity contract.
Answer: A contract under which an insurer promises to make a series of
periodic payments to a named individual in exchange for a premium or
series of premiums.
ANSWERS 2026 PRACTICE TEST
QUESTIONS WITH ACCURATE
ANSWERS
◉ speculative risk.
Answer: Three possible outcomes: loss, gain or no change.
◉ pure risk.
Answer: No possibilty of gain; either loss or no loss
◉ risk management.
Answer: Process by which individuals and businesses identify and assess
the risks they face and take measures to eliminate or reduce their
exposure to those risks.
◉ insurer.
Answer: A company that accepts the risk and makes a promise to pay a
policy benefit if a loss does occur.
◉ policy benefit.
Answer: A specific amount of money an insurer agrees to pay under an
insurance policy when a specific loss occurs.
◉ insurance policy.
, Answer: A written document that contains the terms of the agreement
between the insurer and the owner of the policy. Also known as an
insurance contract.
◉ premium.
Answer: A specified amount of money an insurer charges in exchange
for agreeing to pay a policy benefit when a specified loss occurs.
◉ personal risk.
Answer: The risk of economic loss associated with death, poor health,
injury, and outliving one's economic resources.
◉ life and health insurance company.
Answer: A company that issues and sells products that insure against
finanacial losses that result from personal risks such as death, disability,
illness, accident, and outliving one's savings.
◉ life insurance.
Answer: Insurance that pays a benefit upon the death of a named person.
◉ annuity contract.
Answer: A contract under which an insurer promises to make a series of
periodic payments to a named individual in exchange for a premium or
series of premiums.
