LOMA 280 EXAM SCRIPT 2026 FULL
SOLUTIONS VERIFIED CORRECT
RESPONSES HIGH SCORING
◉ contract of indemnity
Answer: An insurance policy under which the amount of the policy
benefit payable for a covered loss is based on the actual amount of
financial loss that results from the covered event.
◉ valued contract
Answer: An insurance policy that specifies the amount of policy
benefit that will be payable when a covered loss occurs, regardless of
the actual amount of loss that was incurred.
◉ face amount
Answer: The amount of the policy benefit that is payable if the
insured dies while the policy is in force. Also know as face value.
◉ law of large numbers
Answer: A mathematical theory which states that the more times we
observe a particular event, the more likely that our observed results
will approximate the true probability that the event will occur.
, ◉ probability
Answer: The likelihood that a given event will occur in the future.
◉ mortality table
Answer: Charts that indicate the number of people in a large group
who are likely to die at certain ages.
◉ mortality rate
Answer: The rate at which death occurs among a specified group of
people during a specified period.
◉ morbidity rate
Answer: The rate at which sickness and accidents occur among a
given group of people.
◉ reinsurance
Answer: Insurance that one insurance company, known as the direct
writer or ceding company, purchases from another insurance
company to transfer all or part of the risk.
◉ direct writer
Answer: The insurance company that purchases reinsurance to
transfer all or part of the risks on insurance policies the company
issued.
SOLUTIONS VERIFIED CORRECT
RESPONSES HIGH SCORING
◉ contract of indemnity
Answer: An insurance policy under which the amount of the policy
benefit payable for a covered loss is based on the actual amount of
financial loss that results from the covered event.
◉ valued contract
Answer: An insurance policy that specifies the amount of policy
benefit that will be payable when a covered loss occurs, regardless of
the actual amount of loss that was incurred.
◉ face amount
Answer: The amount of the policy benefit that is payable if the
insured dies while the policy is in force. Also know as face value.
◉ law of large numbers
Answer: A mathematical theory which states that the more times we
observe a particular event, the more likely that our observed results
will approximate the true probability that the event will occur.
, ◉ probability
Answer: The likelihood that a given event will occur in the future.
◉ mortality table
Answer: Charts that indicate the number of people in a large group
who are likely to die at certain ages.
◉ mortality rate
Answer: The rate at which death occurs among a specified group of
people during a specified period.
◉ morbidity rate
Answer: The rate at which sickness and accidents occur among a
given group of people.
◉ reinsurance
Answer: Insurance that one insurance company, known as the direct
writer or ceding company, purchases from another insurance
company to transfer all or part of the risk.
◉ direct writer
Answer: The insurance company that purchases reinsurance to
transfer all or part of the risks on insurance policies the company
issued.
