LOMA 371 EXAM WITH ACCURATE QUESTIONS AND ANSWERS (VERIFIED ANSWERS) | LATEST (2026/2027) UPDATED VERSION | 100% GUARANTEED PASS {JUST RELEASED}

LOMA 371 EXAM WITH ACCURATE
QUESTIONS AND ANSWERS
(VERIFIED ANSWERS) | LATEST
(2026/2027) UPDATED VERSION |
100% GUARANTEED PASS
{JUST RELEASED}



1. Return on Equity (ROE)

(measures operating efficiency) - ANSWER ✓ = Net Income / Owners' Equity

or

= (Revenues - Expenses) / Owners' Equity



2. Required Rate of Return - ANSWER ✓ = Risk-free rate of return + Risk
premium*



(* this serves as the incentive for an investor to pursue a specific investment
opportunity)

,3. Minimum Required Assets - ANSWER ✓ = Minimum Required Reserves +
Minimum Required Capital



4. Credit Risks - ANSWER ✓ default risk

counterparty risk



5. Market Risks - ANSWER ✓ equity risk

interest-rate risk

reinvestment rate risk

liquidity risk

currency risk



6. Underwriting Risks - ANSWER ✓ pricing risk

policyholder behavior risk



7. Operational Risks - ANSWER ✓ distribution risk

human resources risk

technology risk

business process risk

business partner risk

, event risk



8. Other Risks - ANSWER ✓ strategy risk

regulatory risk

competition risk

reputational risk



9. Components of ERM - ANSWER ✓ - A risk control process. (identify, evaluate,
monitor, limit)



- Extreme event management. (reinsurrance)



- A risk accountability framework. (risk committee or CRO)



- A risk management culture. (risk appetite = qualitative and risk
Tolerance = quanTitative)



- Strategic risk management.



10. Investment expenses - ANSWER ✓ - costs of analyzing investment
opportunities