©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
LOMA 291 Module 2 Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Omnichannel distribution - Answer✔allows customers to choose how they wish to engage with
insurer, lets companies create personalized interactions with customers/business partners
Worksite marketing - Answer✔distributing voluntary benefits to people at their place of work
Location-selling systems - Answer✔may be in businesses like department stores, big box stores,
grocery stores, funeral homes, Can be staffed by financial professionals, self-service options
Distribution systems - Answer✔used by insurance companies to connect products or services
with customers who might want or need them
Direct distribution system - Answer✔customer buys directly from insurer or through member of
insurer's direct sales force
Career agents (captive agent) - Answer✔agent under full-time contract with an insurer to sell
primarily that insurance company's products
Multiple-line exclusive agents (MLEAs) - Answer✔agent who sells products for one insurance
company, with majority of sales being property-casualty products
Intermediary distribution system - Answer✔insurance company relies on other individuals and
orgs. To sell product to customer
Direct-to-consumer (D2C) sales - Answer✔non face-to-face distribution programs, directed by
insurance company, insurance company encourages purchase of its products by marketing
directly to customers, or customer can contact company
agency operations units - Answer✔support direct sales force, Make sure strategic
goals/objectives of unit are consistent with insurer's goals
Make policies and procedures for unit operations in compliance with regulatory requirements
Set performance standards
Home office services, customer service
1
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
First-year commission - Answer✔designed to generate sales, rates for insurance policies range
from 40-90% of policy's first-year premium
Renewal commission - Answer✔rates lower than first-year, 2-5% premiums received, paid only
on policies that stay in force, designed to motivate quality business
Service fee - Answer✔small % of premiums (1-2%) that is payable after renewal commissions
have ceased, insurer pays this, Paid to the agent who is currently providing service to the
customer, even if it's not the agent that sold the policy
Trail commission - Answer✔% of annuity's accumulated value paid periodically (usually
annually) to financial professional that sold the annuity
Churning - Answer✔agent makes client replace one policy after another, so they can get first-
year commissions on the replacements
Twisting - Answer✔agent misrepresents features of policy to make customer replace existing
policy
Rebating - Answer✔agent offers prospect of inducement (cash value) to buy policy that isn't
offered to all applicants in similar situations and isn't stated in the policy itself
Independent agents - Answer✔agents whose activities aren't dictated by a single insurance
company
Personal-producing general agents (PPGAs) - Answer✔enter agent contracts with 1+ insurers,
sell more than 1 insurer's products, experienced financial professionals, largely responsible for
their own office space and other expenses, require little training other than on specific products
Independent distribution network (independent marking organization (IMO), brokerage general
agent (BGA) - Answer✔independent agent doesn't do business directly with insurance
company, they submit business to the company through additional intermediary
Broker-dealer - Answer✔financial institution that buys and sells securities (stocks, bonds,
mutual funds) either for itself or for its customers Have to be SEC registered and member of
FINRA
Registered representatives (registered reps) - Answer✔people who work for a broker-dealer
selling securities and are FINRA registered
Registered investment advisers (RIAs) - Answer✔give advice on investing in securities, larger
firms (>$100M client assets) register with SEC, smaller firms register with state securities
authorities
Platform employees - Answer✔sell simple life products - term - refer clients with complex
financial needs to financial consultants
2
LOMA 291 Module 2 Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Omnichannel distribution - Answer✔allows customers to choose how they wish to engage with
insurer, lets companies create personalized interactions with customers/business partners
Worksite marketing - Answer✔distributing voluntary benefits to people at their place of work
Location-selling systems - Answer✔may be in businesses like department stores, big box stores,
grocery stores, funeral homes, Can be staffed by financial professionals, self-service options
Distribution systems - Answer✔used by insurance companies to connect products or services
with customers who might want or need them
Direct distribution system - Answer✔customer buys directly from insurer or through member of
insurer's direct sales force
Career agents (captive agent) - Answer✔agent under full-time contract with an insurer to sell
primarily that insurance company's products
Multiple-line exclusive agents (MLEAs) - Answer✔agent who sells products for one insurance
company, with majority of sales being property-casualty products
Intermediary distribution system - Answer✔insurance company relies on other individuals and
orgs. To sell product to customer
Direct-to-consumer (D2C) sales - Answer✔non face-to-face distribution programs, directed by
insurance company, insurance company encourages purchase of its products by marketing
directly to customers, or customer can contact company
agency operations units - Answer✔support direct sales force, Make sure strategic
goals/objectives of unit are consistent with insurer's goals
Make policies and procedures for unit operations in compliance with regulatory requirements
Set performance standards
Home office services, customer service
1
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
First-year commission - Answer✔designed to generate sales, rates for insurance policies range
from 40-90% of policy's first-year premium
Renewal commission - Answer✔rates lower than first-year, 2-5% premiums received, paid only
on policies that stay in force, designed to motivate quality business
Service fee - Answer✔small % of premiums (1-2%) that is payable after renewal commissions
have ceased, insurer pays this, Paid to the agent who is currently providing service to the
customer, even if it's not the agent that sold the policy
Trail commission - Answer✔% of annuity's accumulated value paid periodically (usually
annually) to financial professional that sold the annuity
Churning - Answer✔agent makes client replace one policy after another, so they can get first-
year commissions on the replacements
Twisting - Answer✔agent misrepresents features of policy to make customer replace existing
policy
Rebating - Answer✔agent offers prospect of inducement (cash value) to buy policy that isn't
offered to all applicants in similar situations and isn't stated in the policy itself
Independent agents - Answer✔agents whose activities aren't dictated by a single insurance
company
Personal-producing general agents (PPGAs) - Answer✔enter agent contracts with 1+ insurers,
sell more than 1 insurer's products, experienced financial professionals, largely responsible for
their own office space and other expenses, require little training other than on specific products
Independent distribution network (independent marking organization (IMO), brokerage general
agent (BGA) - Answer✔independent agent doesn't do business directly with insurance
company, they submit business to the company through additional intermediary
Broker-dealer - Answer✔financial institution that buys and sells securities (stocks, bonds,
mutual funds) either for itself or for its customers Have to be SEC registered and member of
FINRA
Registered representatives (registered reps) - Answer✔people who work for a broker-dealer
selling securities and are FINRA registered
Registered investment advisers (RIAs) - Answer✔give advice on investing in securities, larger
firms (>$100M client assets) register with SEC, smaller firms register with state securities
authorities
Platform employees - Answer✔sell simple life products - term - refer clients with complex
financial needs to financial consultants
2
