LOMA 311 Module 1 Exam 2025
Questions and Answers
True/False: Regulations make up the body of law known as administrative law -
✔✔This statement is true. Regulations make up the body of law known as
administrative law, and the regulations of each governmental unit are compiled into
that jurisdiction's administrative code
the life Insurance industry is of such importance to so many people that it occupies a
special position of public trust. Millions of families rely on life insurance and annuity
products for savings and financial protection against the risks of dying too soon or
outliving assets. Also, the reserves held by life insurers are one of the largest sources of
private funds in the world's financial markets
stakeholders - ✔✔the parties who have an interest in how the company conducts its
business.
a life insurance company's stakeholders include stockholders (for stock companies), the
board of directors, executives, managers, employees, agents, potential customers, policy
owners, beneficiaries, annuity participants, and regulators, among others
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,governments rely on the legal system to put in place specific insurance laws and
regulations that safeguard this public trust. Also, in a business as complex and
important as the life insurance industry mistakes and disagreements happen and the
parties often turn to the legal system to solve disputes
a legal system includes two major components: - ✔✔1. laws and regulations that
regulate conduct
2. legal processes to enforce those laws and regulations. The laws and regulations
provide guidelines and rules to help peoples, combines, and governments interact in an
orderly way. legal process are used to resolve disputes, provide remedies for victims,
and punish those who break laws
Legal system enables - ✔✔individuals and organizations to anticipate the outcomes of
their actions with some certainty, manage affairs with a minimum of conflict, and
resolve disputes fairly
laws that affect how life insurers conduct business - ✔✔- contract law
- agency law
- property law
Insurers must be careful to avoid - ✔✔fines, lawsuits, and negative publicity, which can
harm the company reputation and profits
Business Law for insurance professionals - ✔✔provides a basic knowledge of the legal
system as well as legal and regulatory issues unique to the life insurance industry
Sources of law - ✔✔1. Constitutions
2. Statutes
3. administrative regulations
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
,4. treaties and international agreements. In many countries, including the US, another
primary source of law is case law created by the Courts
Constitution - ✔✔A document or group of documents that sets out the fundamental
principles that determine the powers and duties of the governments and the rights of
the people. It is a basic part of a country's legal system and is intended to be a relatively
permanent and primary source of law. A constitution typically is considered the
supreme law of the land. any laws found to violate a country's constitution generally
are invalid
- constitution establishes the organization structure of the government
- the us constitution establishes a system of checks and balances. helps prevent
concentration of power in one branch
three functions that governments carry out - ✔✔1. create laws
2. Administer and enforce laws
3. resolve disputes
three branches of government - ✔✔- legislative branch
- executive branch
- judicial branch
legislative branch - ✔✔consist of one or more legislative bodies,- often referred to as the
legislature or parliament-- responsible for enacting laws to govern the applicable
jurisdiction
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, - create laws
The executive branch - ✔✔consists of a system of administrative agencies--often
referred to as departments or ministries-- that are responsible for administering,
enforcing or carrying out the jurisdiction's laws
- enforce the laws
The Judicial branch - ✔✔consists of a system of courts that are responsible for applying
and interpreting the jurisdiction's laws and for resolving disputes; in addition, many
countries promote alternative dispute resolution methods
- interpret the laws
Parliamentary democracies - ✔✔the legislative branch of government, usually known as
parliament, has ultimate authority for making all laws.
ex- Britain, India , singapore
executive branch led by prime minister.
The prime minister - ✔✔The individual who heads the political party--or coalition of
parties--that holds a majority of elected seats in the parliament. Upon taking office, the
prime minister names a cabinet of individuals who serve as advisors
- executive branch hold power as long as parliament has confident how it is being led if
voted out new election to be led
Federal System - ✔✔in which a federal government and a number of lower-level
governments share governmental powers in other words, a group of sovereign states
are unified as a nation
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
Questions and Answers
True/False: Regulations make up the body of law known as administrative law -
✔✔This statement is true. Regulations make up the body of law known as
administrative law, and the regulations of each governmental unit are compiled into
that jurisdiction's administrative code
the life Insurance industry is of such importance to so many people that it occupies a
special position of public trust. Millions of families rely on life insurance and annuity
products for savings and financial protection against the risks of dying too soon or
outliving assets. Also, the reserves held by life insurers are one of the largest sources of
private funds in the world's financial markets
stakeholders - ✔✔the parties who have an interest in how the company conducts its
business.
a life insurance company's stakeholders include stockholders (for stock companies), the
board of directors, executives, managers, employees, agents, potential customers, policy
owners, beneficiaries, annuity participants, and regulators, among others
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,governments rely on the legal system to put in place specific insurance laws and
regulations that safeguard this public trust. Also, in a business as complex and
important as the life insurance industry mistakes and disagreements happen and the
parties often turn to the legal system to solve disputes
a legal system includes two major components: - ✔✔1. laws and regulations that
regulate conduct
2. legal processes to enforce those laws and regulations. The laws and regulations
provide guidelines and rules to help peoples, combines, and governments interact in an
orderly way. legal process are used to resolve disputes, provide remedies for victims,
and punish those who break laws
Legal system enables - ✔✔individuals and organizations to anticipate the outcomes of
their actions with some certainty, manage affairs with a minimum of conflict, and
resolve disputes fairly
laws that affect how life insurers conduct business - ✔✔- contract law
- agency law
- property law
Insurers must be careful to avoid - ✔✔fines, lawsuits, and negative publicity, which can
harm the company reputation and profits
Business Law for insurance professionals - ✔✔provides a basic knowledge of the legal
system as well as legal and regulatory issues unique to the life insurance industry
Sources of law - ✔✔1. Constitutions
2. Statutes
3. administrative regulations
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
,4. treaties and international agreements. In many countries, including the US, another
primary source of law is case law created by the Courts
Constitution - ✔✔A document or group of documents that sets out the fundamental
principles that determine the powers and duties of the governments and the rights of
the people. It is a basic part of a country's legal system and is intended to be a relatively
permanent and primary source of law. A constitution typically is considered the
supreme law of the land. any laws found to violate a country's constitution generally
are invalid
- constitution establishes the organization structure of the government
- the us constitution establishes a system of checks and balances. helps prevent
concentration of power in one branch
three functions that governments carry out - ✔✔1. create laws
2. Administer and enforce laws
3. resolve disputes
three branches of government - ✔✔- legislative branch
- executive branch
- judicial branch
legislative branch - ✔✔consist of one or more legislative bodies,- often referred to as the
legislature or parliament-- responsible for enacting laws to govern the applicable
jurisdiction
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, - create laws
The executive branch - ✔✔consists of a system of administrative agencies--often
referred to as departments or ministries-- that are responsible for administering,
enforcing or carrying out the jurisdiction's laws
- enforce the laws
The Judicial branch - ✔✔consists of a system of courts that are responsible for applying
and interpreting the jurisdiction's laws and for resolving disputes; in addition, many
countries promote alternative dispute resolution methods
- interpret the laws
Parliamentary democracies - ✔✔the legislative branch of government, usually known as
parliament, has ultimate authority for making all laws.
ex- Britain, India , singapore
executive branch led by prime minister.
The prime minister - ✔✔The individual who heads the political party--or coalition of
parties--that holds a majority of elected seats in the parliament. Upon taking office, the
prime minister names a cabinet of individuals who serve as advisors
- executive branch hold power as long as parliament has confident how it is being led if
voted out new election to be led
Federal System - ✔✔in which a federal government and a number of lower-level
governments share governmental powers in other words, a group of sovereign states
are unified as a nation
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
