LOMA 291 MODULE 1 UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS VERIFIED 2027 EDITION
1. Stakeholders (consituents)
A party that has an interest in how a company conducts its business. Also known as a constituent.
2. Dividend
Compensation that a company may pay to owners upon a vote by the company's board of directors.
3. Stockholder
We stockholders expect the company to grow steadily. We expect to earn a reasonable return, sometimes
in the form of dividends. Do you know what a dividend is? Sometimes the board of directors votes to make
a payment to the stockholders. The payment is called a dividend.
4. Policy owner
Here are some factors I considered when I chose to buy a policy from Forthright: Good company
reputation Policy features Reasonable charges Financial strength Customer service Forthright provides my
personal safety net because of their good reputation and policy features. They charge me for reasonable
expenses and they have the financial strength to be around for the long haul to pay the policy benefits
they promise me and my family. So far, I'm pleased with my policy and the company's customer service.
5. financial professional
In insurance sales, any individual—including agents, bank-affiliated sales personnel, and brokers—who is
licensed to sell insurance products, solicit sales, or negotiate insurance contracts. Why do I place business
with Forthright? Here are some reasons: Forthright's products meet my clients' needs. Forthright offers
competitive compensation on the business I sell. Its staff is top notch and provides fast and accurate
support. The company has good ratings, so I trust its ability to meet policy obligations in the future.
6. key stakeholders
- stockholder - policyowner - financial professional - employee - reinsurer - consultants/vendors -
borrowers - regulators - rating agencies - associations - trade associations
7. employee values
I value the long-term employment. I enjoy my coworkers. I'm proud to work for a reputable company. I
appreciate the salary and benefits.
8. reinsurance
Insurance that one insurance company, known as the direct writer, purchases from another insurance
company, known as the reinsurer, to transfer all or part of the risk on insurance policies that the direct
writer issued.
9. consultants/vendors example
I'm a public accountant. I provide external audit services to Forthright. Many vendors provide goods and
services to Forthright.
10. Borrowers example
I'm a real estate developer. To fund construction projects, I borrow from Forthright Financial. Forthright
lends money as one of its investments. They expect to earn a return, so they keep a close eye on me.
11. regulators example
I conduct in-person examinations of insurance companies that do business in my state. I make sure they
comply with regulations and maintain fair business practices.
1
, 12. rating agencies example
I assign a grade to Forthright Financial and other companies. The grade, called a rating, indicates my
company's opinion of Forthright's overall health and stability.
13. associations example
As a Forthright actuary, I belong to several organizations that set professional standards. Forthright
employs many professionals—actuaries, accountants, auditors, attorneys, underwriters, medical directors,
and others. All of these groups have professional associations.
14. Select each group which counts among an insurance company's stakeholders. a. Financial
professionals b. Reinsurance companies c. Employees d. Trade associations e. Owners of company
stock f. Policyowners
All of them -
15. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "My company provides backup to Forthright on paying its
claims." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
D.
16. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I need prompt handling of my transactions when I make a
withdrawal." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
A.
17. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I value having a good job with reliable income and
benefits." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
C.
18. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I need Forthright to offer products that meet my clients'
needs so that I can earn an income." a. Policyowner b. Stockholder c. Employee d. Reinsurer e.
Financial professional
E.
19. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I need to earn a return on my stock investment in
Forthright." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
B.
20. different stakeholder goals
Declare a stockholder dividend Declare a policyowner dividend Purchase another company Expand into a
new product line company needs to Balance the interests of the different stakeholder groups and
Prioritize each group's interests, if necessary
21. Board of directors
A corporation's governing body, elected by the owners, that makes broad policy decisions to ensure that
stakeholder interests are safeguarded appropriately.
22. governance
A corporate board's accountability, responsibility, and authority to direct an organization to properly fulfill
its missions on behalf of legitimate stakeholders.
2
ANSWERS VERIFIED 2027 EDITION
1. Stakeholders (consituents)
A party that has an interest in how a company conducts its business. Also known as a constituent.
2. Dividend
Compensation that a company may pay to owners upon a vote by the company's board of directors.
3. Stockholder
We stockholders expect the company to grow steadily. We expect to earn a reasonable return, sometimes
in the form of dividends. Do you know what a dividend is? Sometimes the board of directors votes to make
a payment to the stockholders. The payment is called a dividend.
4. Policy owner
Here are some factors I considered when I chose to buy a policy from Forthright: Good company
reputation Policy features Reasonable charges Financial strength Customer service Forthright provides my
personal safety net because of their good reputation and policy features. They charge me for reasonable
expenses and they have the financial strength to be around for the long haul to pay the policy benefits
they promise me and my family. So far, I'm pleased with my policy and the company's customer service.
5. financial professional
In insurance sales, any individual—including agents, bank-affiliated sales personnel, and brokers—who is
licensed to sell insurance products, solicit sales, or negotiate insurance contracts. Why do I place business
with Forthright? Here are some reasons: Forthright's products meet my clients' needs. Forthright offers
competitive compensation on the business I sell. Its staff is top notch and provides fast and accurate
support. The company has good ratings, so I trust its ability to meet policy obligations in the future.
6. key stakeholders
- stockholder - policyowner - financial professional - employee - reinsurer - consultants/vendors -
borrowers - regulators - rating agencies - associations - trade associations
7. employee values
I value the long-term employment. I enjoy my coworkers. I'm proud to work for a reputable company. I
appreciate the salary and benefits.
8. reinsurance
Insurance that one insurance company, known as the direct writer, purchases from another insurance
company, known as the reinsurer, to transfer all or part of the risk on insurance policies that the direct
writer issued.
9. consultants/vendors example
I'm a public accountant. I provide external audit services to Forthright. Many vendors provide goods and
services to Forthright.
10. Borrowers example
I'm a real estate developer. To fund construction projects, I borrow from Forthright Financial. Forthright
lends money as one of its investments. They expect to earn a return, so they keep a close eye on me.
11. regulators example
I conduct in-person examinations of insurance companies that do business in my state. I make sure they
comply with regulations and maintain fair business practices.
1
, 12. rating agencies example
I assign a grade to Forthright Financial and other companies. The grade, called a rating, indicates my
company's opinion of Forthright's overall health and stability.
13. associations example
As a Forthright actuary, I belong to several organizations that set professional standards. Forthright
employs many professionals—actuaries, accountants, auditors, attorneys, underwriters, medical directors,
and others. All of these groups have professional associations.
14. Select each group which counts among an insurance company's stakeholders. a. Financial
professionals b. Reinsurance companies c. Employees d. Trade associations e. Owners of company
stock f. Policyowners
All of them -
15. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "My company provides backup to Forthright on paying its
claims." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
D.
16. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I need prompt handling of my transactions when I make a
withdrawal." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
A.
17. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I value having a good job with reliable income and
benefits." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
C.
18. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I need Forthright to offer products that meet my clients'
needs so that I can earn an income." a. Policyowner b. Stockholder c. Employee d. Reinsurer e.
Financial professional
E.
19. In each of the following questions, select the person who would most likely make each statement
about his or her interests as a stakeholder. "I need to earn a return on my stock investment in
Forthright." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional
B.
20. different stakeholder goals
Declare a stockholder dividend Declare a policyowner dividend Purchase another company Expand into a
new product line company needs to Balance the interests of the different stakeholder groups and
Prioritize each group's interests, if necessary
21. Board of directors
A corporation's governing body, elected by the owners, that makes broad policy decisions to ensure that
stakeholder interests are safeguarded appropriately.
22. governance
A corporate board's accountability, responsibility, and authority to direct an organization to properly fulfill
its missions on behalf of legitimate stakeholders.
2
