LOMA 281 Module 1 Exam 2026
Questions and Answers
Risk - Answer -the possibility of an unexpected result.
Premium - Answer -A specified amount of money an insurer charges in exchange
for its agreement to pay a policy benefit when a specific loss occurs.
Insurance company - Answer -A company that provides protection against the risk
of financial loss caused by specific events.
Life insurance - Answer -A type of insurance under which the insurer promises to
pay a death benefit upon the death of a named person.
Annuity - Answer -A financial product by which an insurer, in return for receiving
a premium, promises to make periodic payments to a named person or entity.
Applicant - Answer -The person or entity that applies for an insurance policy.
Policyowner - Answer -The person or entity that owns the issued policy.
Insured - Answer -The person whose life or health the policy insures.
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, Beneficiary - Answer -The person named to receive the policy benefit if the
insured event occurs.
Third party policy - Answer -A policy one person purchases that insures the life of
another person.
Speculative risks - Answer -A risk that involves three possible outcomes: loss,
gain, or no change.
Pure risk - Answer -A risk that involves no possibility of gain; either a loss occurs
or no loss occurs.
Contracts of indemnity - Answer -Health insurance; An insurance policy under
which the amount of the policy benefit payable for a covered loss is based on the
actual amount of financial loss that results from the loss, as determined at the time
of the loss.
Valued contract - Answer -Life insurance; An insurance policy that specifies the
amount of the policy benefit that will be payable when a covered loss occurs,
regardless of the actual amount of the loss the was incurred.
Face amount - Answer -the amount of the policy benefit listed on the first page of a
life insurance policy.
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Questions and Answers
Risk - Answer -the possibility of an unexpected result.
Premium - Answer -A specified amount of money an insurer charges in exchange
for its agreement to pay a policy benefit when a specific loss occurs.
Insurance company - Answer -A company that provides protection against the risk
of financial loss caused by specific events.
Life insurance - Answer -A type of insurance under which the insurer promises to
pay a death benefit upon the death of a named person.
Annuity - Answer -A financial product by which an insurer, in return for receiving
a premium, promises to make periodic payments to a named person or entity.
Applicant - Answer -The person or entity that applies for an insurance policy.
Policyowner - Answer -The person or entity that owns the issued policy.
Insured - Answer -The person whose life or health the policy insures.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Beneficiary - Answer -The person named to receive the policy benefit if the
insured event occurs.
Third party policy - Answer -A policy one person purchases that insures the life of
another person.
Speculative risks - Answer -A risk that involves three possible outcomes: loss,
gain, or no change.
Pure risk - Answer -A risk that involves no possibility of gain; either a loss occurs
or no loss occurs.
Contracts of indemnity - Answer -Health insurance; An insurance policy under
which the amount of the policy benefit payable for a covered loss is based on the
actual amount of financial loss that results from the loss, as determined at the time
of the loss.
Valued contract - Answer -Life insurance; An insurance policy that specifies the
amount of the policy benefit that will be payable when a covered loss occurs,
regardless of the actual amount of the loss the was incurred.
Face amount - Answer -the amount of the policy benefit listed on the first page of a
life insurance policy.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
