LOMA 280 Exam Questions and Answers Fully Solved Latest Version 2025-2026
Unilateral contract - Answers Only one party makes the legally
enforceable promises
Bargaining contract - Answers Both parties as equals set terms and
conditions of the agreement.
Commutative contract - Answers The parties specify values in advance
that they would exchange, moreover
items and services are exchanged
between parties are of relatively equal
values.
Formal contract - Answers The type of contract in which the
requirements concerning the form of
agreement are met
E.g:- Lease deed agreement which an
owner and tenant have to enter before
the tenant can occupy the house.
fraternal benefit society - Answers Fraternal insurers (in US and Canada) generally issue policies
as
open contracts which state that the entire contract consists of the policy and any
attached riders, the fraternal society's charter/constitution/bylaws,
Demutualized insurance company - Answers
Savings bank life insurance (SBLI) company - Answers
Sole proprietorship - Answers Here the 1st party is the owner and the 2nd
party is an employee having the ability & the drive to take over the
business after the owner's death. The 1st party will identify the 2nd
party. The 2nd party, however, may not have sufficient assets to fund
, the purchase of the business. In that case, individual LIP is the
common way to fund for him.
Electronic funds transfer method - Answers The P/Owner authorizes his/her bank to pay the
premiums
automatically on premium due dates.
Universal Life Insurance - Answers Policies pricing factors, including mortality charges, the
interest rate, and expense charges, are each listed separately in the policy.
Insurable risk - Answers loss must occur by chance
Closed contract provision - Answers Policies pricing factors, including mortality charges, the
interest rate, and expense charges, are each listed separately in the policy.
Premium reduction dividend option - Answers specifies that policy dividends will be applied
toward the payment of renewal premiums
Dread disease (DD) benefit - Answers a benefit under which the insurer agrees to pay a
portion of the policy's face amount to a policy owner if the insurer suffers from one of a
number of specified diseases
Terminal illness (TI) benefit - Answers TI benefit is a benefit under which the insurer pays a
portion of the policy's death
benefit to the policy owner if the insured suffers from a terminal illness and has a
physician-certified life expectancy of 12 months or less
First -to - die benefit - Answers Coverage to a couple. If one of them dies then survivor couple
gets the benefit and
coverage terminates.
Mutual assent - Answers
liquidation - Answers the process of selling off for cash a business' assets of the
deceased, such as its building, inventory, etc, and using that cash to pay
the business's debts. Any funds remaining are then distributed among the
owners of the business.
interpleader - Answers a procedure that releases the insurer from liability when the insurer
Unilateral contract - Answers Only one party makes the legally
enforceable promises
Bargaining contract - Answers Both parties as equals set terms and
conditions of the agreement.
Commutative contract - Answers The parties specify values in advance
that they would exchange, moreover
items and services are exchanged
between parties are of relatively equal
values.
Formal contract - Answers The type of contract in which the
requirements concerning the form of
agreement are met
E.g:- Lease deed agreement which an
owner and tenant have to enter before
the tenant can occupy the house.
fraternal benefit society - Answers Fraternal insurers (in US and Canada) generally issue policies
as
open contracts which state that the entire contract consists of the policy and any
attached riders, the fraternal society's charter/constitution/bylaws,
Demutualized insurance company - Answers
Savings bank life insurance (SBLI) company - Answers
Sole proprietorship - Answers Here the 1st party is the owner and the 2nd
party is an employee having the ability & the drive to take over the
business after the owner's death. The 1st party will identify the 2nd
party. The 2nd party, however, may not have sufficient assets to fund
, the purchase of the business. In that case, individual LIP is the
common way to fund for him.
Electronic funds transfer method - Answers The P/Owner authorizes his/her bank to pay the
premiums
automatically on premium due dates.
Universal Life Insurance - Answers Policies pricing factors, including mortality charges, the
interest rate, and expense charges, are each listed separately in the policy.
Insurable risk - Answers loss must occur by chance
Closed contract provision - Answers Policies pricing factors, including mortality charges, the
interest rate, and expense charges, are each listed separately in the policy.
Premium reduction dividend option - Answers specifies that policy dividends will be applied
toward the payment of renewal premiums
Dread disease (DD) benefit - Answers a benefit under which the insurer agrees to pay a
portion of the policy's face amount to a policy owner if the insurer suffers from one of a
number of specified diseases
Terminal illness (TI) benefit - Answers TI benefit is a benefit under which the insurer pays a
portion of the policy's death
benefit to the policy owner if the insured suffers from a terminal illness and has a
physician-certified life expectancy of 12 months or less
First -to - die benefit - Answers Coverage to a couple. If one of them dies then survivor couple
gets the benefit and
coverage terminates.
Mutual assent - Answers
liquidation - Answers the process of selling off for cash a business' assets of the
deceased, such as its building, inventory, etc, and using that cash to pay
the business's debts. Any funds remaining are then distributed among the
owners of the business.
interpleader - Answers a procedure that releases the insurer from liability when the insurer
