LOMA 291 Test Questions with 100% Correct
Answers
Stakeholder
A party that has an interest in how a company conducts its business. Also know as a
constituent.
Dividend
Compensation that a company may pay to owners upon a vote by the company's board of
directors
Financial Professional
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
Reinsurance
Insurance that one insurance company, the direct writer, purchases from another insurance
company, reinsurer, to transfer all or part of the risk on insurance policies that the direct
writer issued.
Consultants/Vendors
Provide goods and services (USSI, Larry)
Regulators
Conduct in-person examinations of insurance companies that do business in my state. Makes
sure they comply with regulations and maintain fair business practices.
Four Functions of Management
, planning, leading, organizing, controlling
Planning
Identifying goals, and the strategies and tactics the company will use to achieve goals
Strategies - Long-term, high-level plans for achieving goals
Tactics - activities to support strategies
Organizing
Defining a structures for an organization to enable it to meet its goals.
Function - distinct type of work
Line Functions - department that produces or administers products or services
Support Functions - provides support services
Organizational Structure
- Define employees' primary duties and formal rights to direct the company's resources by
specifying authority, responsibility, and accountability
- Define divisions, departments, and job positions
Organization Chart
Visual display of the lines of authority and responsibility within a company
Directing
Ensuring that employees perform the right activities in the right way. Managerial activities of
directing include
Leading
Motivating
Answers
Stakeholder
A party that has an interest in how a company conducts its business. Also know as a
constituent.
Dividend
Compensation that a company may pay to owners upon a vote by the company's board of
directors
Financial Professional
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
Reinsurance
Insurance that one insurance company, the direct writer, purchases from another insurance
company, reinsurer, to transfer all or part of the risk on insurance policies that the direct
writer issued.
Consultants/Vendors
Provide goods and services (USSI, Larry)
Regulators
Conduct in-person examinations of insurance companies that do business in my state. Makes
sure they comply with regulations and maintain fair business practices.
Four Functions of Management
, planning, leading, organizing, controlling
Planning
Identifying goals, and the strategies and tactics the company will use to achieve goals
Strategies - Long-term, high-level plans for achieving goals
Tactics - activities to support strategies
Organizing
Defining a structures for an organization to enable it to meet its goals.
Function - distinct type of work
Line Functions - department that produces or administers products or services
Support Functions - provides support services
Organizational Structure
- Define employees' primary duties and formal rights to direct the company's resources by
specifying authority, responsibility, and accountability
- Define divisions, departments, and job positions
Organization Chart
Visual display of the lines of authority and responsibility within a company
Directing
Ensuring that employees perform the right activities in the right way. Managerial activities of
directing include
Leading
Motivating
