LOMA 320 EXAM GUIDE QUESTIONS AND ANSWERS 100% VERIFIED GRADED A 2024

13-month lapse rate - A lapse rate for insurance policies that is based on the proportion of new policies on which no part of any required second-year premium has been paid addressable television advertising. - A form of television advertising available through cable television subscribers that delivers different ads or groups of ads to different audiences based on demographics, customer behavior, or geographic location Advertisements of Life Insurance and Annuities Model Regulation - In the United States, a model law developed by the National Association of Insurance Commissioners that requires insurers to disclose to the public all relevant information in their advertisements of insurance and annuity contracts and establishes minimum standards of accuracy and fairness. Also known as Model Advertisements Regulation. advertising - A form of nonpersonal communication about a company or its products and services that is generated and paid for by an identified sponsor and transmitted by the media. advertising agency - An organization that provides its clients with a variety of advertising-related services including developing advertising themes, selecting appropriate media, and creating, producing, and placing advertisements. advertising campaign - A coordinated series of advertisements designed to promote a product, product line, or the company itself. advocacy advertising - A form, of institutional advertising that presents an industry's, company's or organization's position on an issue important to the public. affiliated agent. - An agent who sells primarily the products of a single company. affinity group - A group or association that consists of people who share a common bond, background, or interest agency agreement. /agency contract. - A written agreement between an agent and an insurance company that outlines the agent's role, compensation, and responsibilities to the insurance company aggregator. - An internet intermediary that lists products from several different companies on a single web site. artificial intelligence. (AI) - An area of computer science that emphasizes the creation of intelligent machines that work and react like humans AIDA model. - A commonly used response hierarchy which defines four possible responses customers may display as a result of exposure to promotions: (1) attention, or awareness, (2) interest, (3), desire, and (4) action. aided recall test - A type of recall test in which customers are given information to jog their memories, or recall, of a particular advertisement. all-you-can-afford method - A method of establishing a promotion budget in which the budget is based on the amount of available funds. anchoring and adjustment - A heuristic often used in insurance purchases in which customers focus on one initial attribute of a product and fail to adequately adjust other variables based on this anchor. attitude test - A post-testing method that measures and compares customers' views and beliefs before and after their exposure to an advertisement. availability bias - In behavioral economics, the tendency in decision making to use only information that is easy to find. banding. - A method of providing discounts in which a company creates a number of contiguous bands based on the face amount of a policy and charges different premium rates for each band bank insurance - The distribution of insurance products to bank customers through a bank-affiliated insurer or insurance agency. Sometimes referred to as bancassurance. banner ad - A small, clickable advertisement that appears on web pages. Visitors who click on an ad are automatically directed by the browser to the advertiser's web site. Also known as a display ad. barrier to entry - A business practice or condition in a market that hinders new companies from entering the market. behavioristic segmentation - A method of dividing the total market for a product according to consumers' behavior toward a product or company. benchmarking. - A quality management process which consists of (1) identifying the best outcomes that other companies have achieved for a specific process or activity and the practices that produced those outcomes, and (2) implementing the best practices to equal or surpass the best outcomes. benefit segmentation - A method of dividing the total market for a product according to which benefits prospective consumers seek in a product or service. bottom-up approach to budgeting - An approach to budgeting whereby marketing managers communicate to senior management (1) the amount of resources they need to execute a marketing plan and (2) when they need these resources. Senior managers then allocate funds for the various elements in the marketing mix and for ongoing marketing department tasks brand - A name, number, term, sign, symbol, design, or combination of these elements used to identify one or more of a company's products and to differentiate these products from competing products. brand awareness / brand recognition - The recognition of a brand or brand name by potential buyers and the ability to associate with the product in question brand insistence - A customer's unwillingness to accept any substitute for the preferred brand. brand mark - An element of a brand that consists of a symbol, design, distinctive coloring, unusual type style, or combination of these elements that can be recognized but can't be spoken. Also known as a logo or logotype. brand name. - An element of a brand that consists of a word, letter, or group of words or letters that can be vocalized. brand preference - A customer's choice of a particular product, when available, over competing products, but the willingness to accept a substitute product when the preferred product is not available. branding. - The process through which a company creates an identity, or brand, for a product, product line, or company. brokerage general agency (BGA) - An independent firm that works for an insurance company and sells one or more insurance products to select agents or brokers. broker-dealer - A type of financial institution that buys and sells securities either for itself or for its customers and provides information and advice to customers regarding the purchase and sale of securities