LOMA 280 VERIFIED STUDY GUIDE
Unilateral contract - Answers - Only one party makes the legally
enforceable promises
Bargaining contract - Answers - Both parties as equals set terms and
conditions of the agreement.
Commutative contract - Answers - The parties specify values in advance
that they would exchange, moreover
items and services are exchanged
between parties are of relatively equal
values.
Formal contract - Answers - The type of contract in which the
requirements concerning the form of
agreement are met
E.g:- Lease deed agreement which an
owner and tenant have to enter before
the tenant can occupy the house.
fraternal benefit society - Answers - Fraternal insurers (in US and Canada) generally
issue policies as
open contracts which state that the entire contract consists of the policy and any
attached riders, the fraternal society's charter/constitution/bylaws,
Demutualized insurance company - Answers -
Savings bank life insurance (SBLI) company - Answers -
Sole proprietorship - Answers - Here the 1st party is the owner and the 2nd
party is an employee having the ability & the drive to take over the
business after the owner's death. The 1st party will identify the 2nd
party. The 2nd party, however, may not have sufficient assets to fund
the purchase of the business. In that case, individual LIP is the
common way to fund for him.
Electronic funds transfer method - Answers - The P/Owner authorizes his/her bank to
pay the premiums
automatically on premium due dates.
Universal Life Insurance - Answers - Policies pricing factors, including mortality charges,
the interest rate, and expense charges, are each listed separately in the policy.
, Insurable risk - Answers - loss must occur by chance
Closed contract provision - Answers - Policies pricing factors, including mortality
charges, the interest rate, and expense charges, are each listed separately in the policy.
Premium reduction dividend option - Answers - specifies that policy dividends will be
applied toward the payment of renewal premiums
Dread disease (DD) benefit - Answers - a benefit under which the insurer agrees to pay
a
portion of the policy's face amount to a policy owner if the insurer suffers from one of a
number of specified diseases
Terminal illness (TI) benefit - Answers - TI benefit is a benefit under which the insurer
pays a portion of the policy's death
benefit to the policy owner if the insured suffers from a terminal illness and has a
physician-certified life expectancy of 12 months or less
First -to - die benefit - Answers - Coverage to a couple. If one of them dies then survivor
couple gets the benefit and
coverage terminates.
Mutual assent - Answers -
liquidation - Answers - the process of selling off for cash a business' assets of the
deceased, such as its building, inventory, etc, and using that cash to pay
the business's debts. Any funds remaining are then distributed among the
owners of the business.
interpleader - Answers - a procedure that releases the insurer from liability when the
insurer cannot determine the correct beneficiary for a policy's proceeds, the insurer may
pay such proceeds to a court and ask the court to decide the proper recipient
offer and acceptance - Answers -
Spouse and children insurance rider - Answers - Any child born into the family while the
policy is in force will be covered automatically under the rider when the child reaches
the age of 15days.
join whole life insurance - Answers - Insures the lives of two individuals under the same
policy and provides a death benefit upon the death of one of the insureds
Under the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) - Answers
- Retirement income benefits are provided in one lump sum instead of monthly
payments
Unilateral contract - Answers - Only one party makes the legally
enforceable promises
Bargaining contract - Answers - Both parties as equals set terms and
conditions of the agreement.
Commutative contract - Answers - The parties specify values in advance
that they would exchange, moreover
items and services are exchanged
between parties are of relatively equal
values.
Formal contract - Answers - The type of contract in which the
requirements concerning the form of
agreement are met
E.g:- Lease deed agreement which an
owner and tenant have to enter before
the tenant can occupy the house.
fraternal benefit society - Answers - Fraternal insurers (in US and Canada) generally
issue policies as
open contracts which state that the entire contract consists of the policy and any
attached riders, the fraternal society's charter/constitution/bylaws,
Demutualized insurance company - Answers -
Savings bank life insurance (SBLI) company - Answers -
Sole proprietorship - Answers - Here the 1st party is the owner and the 2nd
party is an employee having the ability & the drive to take over the
business after the owner's death. The 1st party will identify the 2nd
party. The 2nd party, however, may not have sufficient assets to fund
the purchase of the business. In that case, individual LIP is the
common way to fund for him.
Electronic funds transfer method - Answers - The P/Owner authorizes his/her bank to
pay the premiums
automatically on premium due dates.
Universal Life Insurance - Answers - Policies pricing factors, including mortality charges,
the interest rate, and expense charges, are each listed separately in the policy.
, Insurable risk - Answers - loss must occur by chance
Closed contract provision - Answers - Policies pricing factors, including mortality
charges, the interest rate, and expense charges, are each listed separately in the policy.
Premium reduction dividend option - Answers - specifies that policy dividends will be
applied toward the payment of renewal premiums
Dread disease (DD) benefit - Answers - a benefit under which the insurer agrees to pay
a
portion of the policy's face amount to a policy owner if the insurer suffers from one of a
number of specified diseases
Terminal illness (TI) benefit - Answers - TI benefit is a benefit under which the insurer
pays a portion of the policy's death
benefit to the policy owner if the insured suffers from a terminal illness and has a
physician-certified life expectancy of 12 months or less
First -to - die benefit - Answers - Coverage to a couple. If one of them dies then survivor
couple gets the benefit and
coverage terminates.
Mutual assent - Answers -
liquidation - Answers - the process of selling off for cash a business' assets of the
deceased, such as its building, inventory, etc, and using that cash to pay
the business's debts. Any funds remaining are then distributed among the
owners of the business.
interpleader - Answers - a procedure that releases the insurer from liability when the
insurer cannot determine the correct beneficiary for a policy's proceeds, the insurer may
pay such proceeds to a court and ask the court to decide the proper recipient
offer and acceptance - Answers -
Spouse and children insurance rider - Answers - Any child born into the family while the
policy is in force will be covered automatically under the rider when the child reaches
the age of 15days.
join whole life insurance - Answers - Insures the lives of two individuals under the same
policy and provides a death benefit upon the death of one of the insureds
Under the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) - Answers
- Retirement income benefits are provided in one lump sum instead of monthly
payments
