LOMA 281 Module 2 Exam 2025
Questions and Answers
Term Life insurance - ✔✔Insurance that provides a policy benefit if the insured dies
during a specified period of time.
Policy term - ✔✔The specified period of time for which a term life insurance policy
provides coverage.
Level Term life insurance - ✔✔A plan of term life insurance that provides a policy
benefit that remains the same over the term of coverage.
Decreasing term life insurance - ✔✔A plan of term life insurance that provides a policy
benefit that decrease in amount over the term of coverage.
Increasing term life insurance - ✔✔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.
Mortgage insurance - ✔✔A plan of decreasing term life insurance designed to provide a
benefit amount that corresponds to the decreasing amount owed on a mortgage loan
Credit life insurance - ✔✔A type of term life insurance designed to pay the balance due
on a loan if the borrower dies before the loan is paid
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, Family income coverage - ✔✔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.
Return of premium term insurance - ✔✔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.
Renewable term insurance - ✔✔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.
Evidence of insurability - ✔✔Proof that a given person is an insurable risk.
Convertible term insurance - ✔✔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.
Conversion period - ✔✔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.
Original age conversion - ✔✔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.
Cash value life insurance - ✔✔Insurance that provides life insurance coverage
throughout the insured's lifetime and also provides a savings element.
Cash value - ✔✔The savings element of a cash value life insurance policy, which
represents the policyowner's ownership interest in the policy.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
Questions and Answers
Term Life insurance - ✔✔Insurance that provides a policy benefit if the insured dies
during a specified period of time.
Policy term - ✔✔The specified period of time for which a term life insurance policy
provides coverage.
Level Term life insurance - ✔✔A plan of term life insurance that provides a policy
benefit that remains the same over the term of coverage.
Decreasing term life insurance - ✔✔A plan of term life insurance that provides a policy
benefit that decrease in amount over the term of coverage.
Increasing term life insurance - ✔✔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.
Mortgage insurance - ✔✔A plan of decreasing term life insurance designed to provide a
benefit amount that corresponds to the decreasing amount owed on a mortgage loan
Credit life insurance - ✔✔A type of term life insurance designed to pay the balance due
on a loan if the borrower dies before the loan is paid
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, Family income coverage - ✔✔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.
Return of premium term insurance - ✔✔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.
Renewable term insurance - ✔✔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.
Evidence of insurability - ✔✔Proof that a given person is an insurable risk.
Convertible term insurance - ✔✔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.
Conversion period - ✔✔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.
Original age conversion - ✔✔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.
Cash value life insurance - ✔✔Insurance that provides life insurance coverage
throughout the insured's lifetime and also provides a savings element.
Cash value - ✔✔The savings element of a cash value life insurance policy, which
represents the policyowner's ownership interest in the policy.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
