LOMA 281 Module 2 Expected Questions and Verified Answers
(2026-2027)
Question 1.
Insurance that provides a policy benefit if the insured dies during a specified period of
time.
Correct Answer: Term Life insurance
Question 2.
The specified period of time for which a term life insurance policy provides coverage.
Correct Answer: Policy term
Question 3.
A plan of term life insurance that provides a policy benefit that remains the same over the
term of coverage.
Correct Answer: Level Term life insurance
Question 4.
A plan of term life insurance that provides a policy benefit that decrease in amount over
the term of coverage.
Correct Answer: Decreasing term life insurance
Question 5.
A plan of life insurance that provides a policy benefit that starts at one amount and
increases by some specified amount or percentage at stated intervals over the term of
coverage.
Correct Answer: Increasing term life insurance
Question 6.
A plan of decreasing term life insurance designed to provide a benefit amount that
corresponds to the decreasing amount owed on a mortgage loan
Correct Answer: Mortgage insurance
Question 7.
A type of term life insurance designed to pay the balance due on a loan if the borrower
dies before the loan is paid
Correct Answer: Credit life insurance
, Question 8.
A plan of decreasing term life insurance that provides a stated monthly income benefit
amount to the insured's surviving spouse if the insured dies during the term of coverage.
Correct Answer: Family income coverage
Question 9.
A type of term insurance that provides a death benefit if the insured dies during the term
of coverage and that promises a return of premiums if the insured does not die during the
term of coverage.
Correct Answer: Return of premium term insurance
Question 10.
Term life insurance that gives the policyowner the option to continue the policy's coverage
for an additional policy term without providing evidence of insurability.
Correct Answer: Renewable term insurance
Question 11.
Proof that a given person is an insurable risk.
Correct Answer: Evidence of insurability
Question 12.
Term life insurance that gives the policyowner the right to convert the term policy to a
cash value life insurance policy without providing evidence of insurability.
Correct Answer: Convertible term insurance
Question 13.
The specified period of time following policy issue during which the owner of a convertible
term life insurance policy can convert the coverage to cash value life insurance.
Correct Answer: Conversion period
Question 14.
A conversion of a term life insurance policy to a cash value life insurance policy in which
the renewal premium rate is based on the insured's age when the original term life
insurance policy was issued.
Correct Answer: Original age conversion
(2026-2027)
Question 1.
Insurance that provides a policy benefit if the insured dies during a specified period of
time.
Correct Answer: Term Life insurance
Question 2.
The specified period of time for which a term life insurance policy provides coverage.
Correct Answer: Policy term
Question 3.
A plan of term life insurance that provides a policy benefit that remains the same over the
term of coverage.
Correct Answer: Level Term life insurance
Question 4.
A plan of term life insurance that provides a policy benefit that decrease in amount over
the term of coverage.
Correct Answer: Decreasing term life insurance
Question 5.
A plan of life insurance that provides a policy benefit that starts at one amount and
increases by some specified amount or percentage at stated intervals over the term of
coverage.
Correct Answer: Increasing term life insurance
Question 6.
A plan of decreasing term life insurance designed to provide a benefit amount that
corresponds to the decreasing amount owed on a mortgage loan
Correct Answer: Mortgage insurance
Question 7.
A type of term life insurance designed to pay the balance due on a loan if the borrower
dies before the loan is paid
Correct Answer: Credit life insurance
, Question 8.
A plan of decreasing term life insurance that provides a stated monthly income benefit
amount to the insured's surviving spouse if the insured dies during the term of coverage.
Correct Answer: Family income coverage
Question 9.
A type of term insurance that provides a death benefit if the insured dies during the term
of coverage and that promises a return of premiums if the insured does not die during the
term of coverage.
Correct Answer: Return of premium term insurance
Question 10.
Term life insurance that gives the policyowner the option to continue the policy's coverage
for an additional policy term without providing evidence of insurability.
Correct Answer: Renewable term insurance
Question 11.
Proof that a given person is an insurable risk.
Correct Answer: Evidence of insurability
Question 12.
Term life insurance that gives the policyowner the right to convert the term policy to a
cash value life insurance policy without providing evidence of insurability.
Correct Answer: Convertible term insurance
Question 13.
The specified period of time following policy issue during which the owner of a convertible
term life insurance policy can convert the coverage to cash value life insurance.
Correct Answer: Conversion period
Question 14.
A conversion of a term life insurance policy to a cash value life insurance policy in which
the renewal premium rate is based on the insured's age when the original term life
insurance policy was issued.
Correct Answer: Original age conversion
