LOMA 291 Questions and Answers 100%
Solved
Operational risk A broad category of risks resulting from external events or poor internal
processes and controls, people or systems
Business process risk An operational risk resulting from inefficient or failed internal
processes, controls, people, technology or systems
Event risk An operational risk from catastrophic events such as earthquakes, hurricanes,
political unrest, airplane crashes, fraud, technology failures, etc
Control function Management activity directed toward ensuring that an organization's
mission and objectives are accomplished effectively, efficiently and according to plan
Steering controls A control established at the beginning of a process that describes how a
company intends to implement the process and avoid pitfalls
,Concurrent controls A control that takes the form of checks and balances built into a
process and that is applied during the process
Feedback controls A control that takes the form of checks and corrections that are applied
to a process at the end of the process cycle
Risk management A systematic application of management policies, procedures, and
practices to identify, quantify, model, offset and limit the impact of unexpected outcomes,
consistent w organizational objectives
Hedging A risk management strategy that involves balancing one risk w a complementary
risk that will ideally offset the original risk
Enterprise Risk Management (ERM) Risk management that takes an organization wide
view of risk and manages risk in a coordinated approach across the organization
Three lines of defense A risk management model structured in three parts: operational
management, internal monitoring and oversight functions, and internal audits
,Omnichannel distribution A form of distribution that enables personalized sales to
customers through multiple integrated communication channels
Distribution system The method an insurance company uses to connect its products or
services w the potential customers who might want or need them
Intermediary distribution system A system in which the insurance company relies on
external individuals and organizations to connect w the customer
Direct sales force Financial professionals directed by an insurer who distribute the
insurer's products
Direct distribution system A distribution system in which the insurance company owns the
distribution system and communicates directly w the customer
Agent A company employee or independent contractor who is authorized to act on behalf
of an insurance company in selling insurance products
, Career agent (captive agent) An agent who is under a full time contract w an insurer to
sell primarily that insurance company's life, health and annuity products
Multiple line exclusive agents (MLEAs) An agent who sells life insurance, health
insurance, annuities and property casualty products for one insurance company w the majority of
sales being property casualty products
Salaried sales representatives A company employee who is paid a salary for making
insurance sales and providing sales support
Group representative Salaried insurance company employees specifically trained in the
techniques of marketing and servicing group products
Direct to consumer sales (D2C) Non face to face distribution programs directed by the
insurance company
Agency operations unit The unit in an insurance company that supports and services the
insurer's direct sales force
Solved
Operational risk A broad category of risks resulting from external events or poor internal
processes and controls, people or systems
Business process risk An operational risk resulting from inefficient or failed internal
processes, controls, people, technology or systems
Event risk An operational risk from catastrophic events such as earthquakes, hurricanes,
political unrest, airplane crashes, fraud, technology failures, etc
Control function Management activity directed toward ensuring that an organization's
mission and objectives are accomplished effectively, efficiently and according to plan
Steering controls A control established at the beginning of a process that describes how a
company intends to implement the process and avoid pitfalls
,Concurrent controls A control that takes the form of checks and balances built into a
process and that is applied during the process
Feedback controls A control that takes the form of checks and corrections that are applied
to a process at the end of the process cycle
Risk management A systematic application of management policies, procedures, and
practices to identify, quantify, model, offset and limit the impact of unexpected outcomes,
consistent w organizational objectives
Hedging A risk management strategy that involves balancing one risk w a complementary
risk that will ideally offset the original risk
Enterprise Risk Management (ERM) Risk management that takes an organization wide
view of risk and manages risk in a coordinated approach across the organization
Three lines of defense A risk management model structured in three parts: operational
management, internal monitoring and oversight functions, and internal audits
,Omnichannel distribution A form of distribution that enables personalized sales to
customers through multiple integrated communication channels
Distribution system The method an insurance company uses to connect its products or
services w the potential customers who might want or need them
Intermediary distribution system A system in which the insurance company relies on
external individuals and organizations to connect w the customer
Direct sales force Financial professionals directed by an insurer who distribute the
insurer's products
Direct distribution system A distribution system in which the insurance company owns the
distribution system and communicates directly w the customer
Agent A company employee or independent contractor who is authorized to act on behalf
of an insurance company in selling insurance products
, Career agent (captive agent) An agent who is under a full time contract w an insurer to
sell primarily that insurance company's life, health and annuity products
Multiple line exclusive agents (MLEAs) An agent who sells life insurance, health
insurance, annuities and property casualty products for one insurance company w the majority of
sales being property casualty products
Salaried sales representatives A company employee who is paid a salary for making
insurance sales and providing sales support
Group representative Salaried insurance company employees specifically trained in the
techniques of marketing and servicing group products
Direct to consumer sales (D2C) Non face to face distribution programs directed by the
insurance company
Agency operations unit The unit in an insurance company that supports and services the
insurer's direct sales force
