LOMA 281 MODULE 2 UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS VERIFIED 2027 EDITION
1. Insurance that provides a policy benefit if the insured dies during a specified period of time.
Term Life insurance
2. The specified period of time for which a term life insurance policy provides coverage.
Policy term
3. A plan of term life insurance that provides a policy benefit that remains the same over the term of
coverage.
Level Term life insurance
4. A plan of term life insurance that provides a policy benefit that decrease in amount over the term
of coverage.
Decreasing term life insurance
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.
Increasing term life insurance
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
Mortgage insurance
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
Credit life insurance
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.
Family income coverage
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.
Return of premium term insurance
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.
Renewable term insurance
11. Proof that a given person is an insurable risk.
Evidence of insurability
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.
Convertible term insurance
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.
Conversion period
1
, 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.
Original age conversion
15. Insurance that provides life insurance coverage throughout the insured's lifetime and also
provides a savings element.
Cash value life insurance
16. The savings element of a cash value life insurance policy, which represents the policyowner's
ownership interest in the policy.
Cash value
17. A loan a policyowner receives from an insurer using the cash value of a life insurance policy as
security.
Policy loan
18. The amount, after adjustments for factors such as policy loans, that the owner of a cash value life
insurance policy is entitled to receive upon surrendering the policy.
Cash surrender value
19. A type of limited-payment whole life insurance policy that requires only one premium payment.
Single premium payment
20. A whole life insurance policy for which premiums are payable only until some stated period
expires or until the insured's death, whichever occurs first.
Limited premium payment
21. A whole life insurance policy for which premiums are payable for the life of the policy. AKA
straight life or ordinary life.
Continuous premium payment
22. A whole life insurance policy that functions in the same manner as a traditional whole life policy
except that the policy's annual premium changes after a specified initial period, such as 5,10,15,20
years.
Modified premium whole life insurance
23. A whole life insurance policy under which the amount of insurance decreases by specific
percentages or amounts either when the insured reaches certain stated ages or at the end of stated
time periods.
Modified coverage whole life insurance
24. A plan of whole life insurance that has the same features and benefits as individual whole life,
except that it insures two lives under the same policy; the death benefit is payable when the first
insured dies.
Joint whole life insurance
25. A variation of joint whole life insurance under which the policy benefit is paid only after both
people insured by the policy have died.
Last survivor life insurance
2
ANSWERS VERIFIED 2027 EDITION
1. Insurance that provides a policy benefit if the insured dies during a specified period of time.
Term Life insurance
2. The specified period of time for which a term life insurance policy provides coverage.
Policy term
3. A plan of term life insurance that provides a policy benefit that remains the same over the term of
coverage.
Level Term life insurance
4. A plan of term life insurance that provides a policy benefit that decrease in amount over the term
of coverage.
Decreasing term life insurance
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.
Increasing term life insurance
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
Mortgage insurance
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
Credit life insurance
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.
Family income coverage
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.
Return of premium term insurance
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.
Renewable term insurance
11. Proof that a given person is an insurable risk.
Evidence of insurability
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.
Convertible term insurance
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.
Conversion period
1
, 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.
Original age conversion
15. Insurance that provides life insurance coverage throughout the insured's lifetime and also
provides a savings element.
Cash value life insurance
16. The savings element of a cash value life insurance policy, which represents the policyowner's
ownership interest in the policy.
Cash value
17. A loan a policyowner receives from an insurer using the cash value of a life insurance policy as
security.
Policy loan
18. The amount, after adjustments for factors such as policy loans, that the owner of a cash value life
insurance policy is entitled to receive upon surrendering the policy.
Cash surrender value
19. A type of limited-payment whole life insurance policy that requires only one premium payment.
Single premium payment
20. A whole life insurance policy for which premiums are payable only until some stated period
expires or until the insured's death, whichever occurs first.
Limited premium payment
21. A whole life insurance policy for which premiums are payable for the life of the policy. AKA
straight life or ordinary life.
Continuous premium payment
22. A whole life insurance policy that functions in the same manner as a traditional whole life policy
except that the policy's annual premium changes after a specified initial period, such as 5,10,15,20
years.
Modified premium whole life insurance
23. A whole life insurance policy under which the amount of insurance decreases by specific
percentages or amounts either when the insured reaches certain stated ages or at the end of stated
time periods.
Modified coverage whole life insurance
24. A plan of whole life insurance that has the same features and benefits as individual whole life,
except that it insures two lives under the same policy; the death benefit is payable when the first
insured dies.
Joint whole life insurance
25. A variation of joint whole life insurance under which the policy benefit is paid only after both
people insured by the policy have died.
Last survivor life insurance
2
