LOMA 291 MODULE 2 QUESTIONS & ANSWERS
Omnichannel distribution - Answer -A form of distribution that enables personalized
sales to customers through multiple, integrated communication channels.
Common ways to engage with customers - Answer -- Face to Face
- Phone
- Direct Mail or Email
- Online
- Print and Broadcast Media
- Worksite Marketing
- Location Selling
Face to Face - Answer -Financial professionals commonly meet face-to-face with
potential customers, often referred to as prospects. Financial professionals follow a
fairly typical sales process during a series of meetings.
During these face-to-face meetings, the financial professional:
Identifies the prospect's financial needs
Develops a proposal that recommends one or more insurance products to meet the
identified needs
Presents the proposal to the prospect in hopes of completing a sale
If the sale is successful, assists the customer in applying for the product, submits the
application to the insurer, and, in some instances, delivers the policy to the customer
Prospects - Answer -A potential customer for an insurer's products or services.
Phone - Answer -Insurers and financial professionals can use telephones to share
information with customers and prospects. Sometimes, the customer will initiate the
contact...
Direct Mail or Email - Answer -An insurer or financial professional using direct mail or
email distributes insurance sales materials through a mail service directly to a list of
prospective customers. These mailings can be physical letters, brochures, or flyers
mailed to the prospect or emails sent to a distribution list. The target market for direct
mail might be readers of a particular publication or holders of a particular credit card.
For paper mail, the sales materials usually consist of an introduction letter, a brochure
that describes a particular product, an insurance or annuity application, or an inquiry
form the customer can use to request further information about the product. For email,
the insurer provides links to similar items on the insurer's website.
Online - Answer -Most insurers' websites provide information and self-service options
and promote products that can satisfy needs. Insurers also advertise their products
,through third-party websites and social media. Consumers using these websites may
contact the company by telephone, email, or web chat to ask questions or purchase a
product. Often, insurers put these consumers in contact with a financial professional.
Financial professionals may also use websites and social media to engage with
customers directly.
Print and Broadcast Media - Answer -An insurer or financial professional may use
printed publications, such as magazines or newspapers, to describe a particular product
and generate interest in that product. Insurers can try to reach a particular target market
by printing advertisements in newspapers in certain geographical areas or in magazines
that appeal to certain demographics. For example, an advertisement for an annuity
product designed for people age 62 or older might appear in a magazine for retired
people.
An insurer can use radio, television, or video streaming sites to disseminate an
advertising message over a wide area to a large, generally undifferentiated audience.
However, selecting certain programs or times of the day in which to advertise does
allow an insurer some selectivity. For example, a life insurance product might be
advertised on television between the hours of 8 and 10 p.m. when newly married
couples or young parents are likely watching television.
Worksite Marketing - Answer -Financial professionals sometimes engage in worksite
marketing to distribute voluntary benefits. Usually, the employer collaborates with the
financial professional to promote voluntary benefits to employees.
Examples of voluntary benefits
include:
Life insurance
Disability insurance
Accident insurance
Critical illness insurance
Long-term care insurance
ID theft protection
Legal services
Financial counseling
Worksite Marketing definition - Answer -A method for distributing voluntary benefits to
people at their place of work.
Voluntary Benefits - Answer -Individual or group insurance or other financial products
offered through an employer, but paid for by the covered employee, usually through
payroll deduction.
Location selling - Answer -Some insurance companies also sell insurance products
through a method known as location-selling. These locations can be staffed by a
financial professional or offer self-service options for customers.
,Location-selling systems may be located in businesses such as department stores, big
box stores, grocery stores, and funeral homes.
Location selling system - Answer -A method for distributing insurance products that is
designed to generate customer-initiated sales at an office or information kiosk in a store,
shopping mall, or other non-insurance business establishment.
Which of the following enables personalized sales to customers through multiple,
integrated communication channels?
a. Omnichannel distribution
b. Worksite marketing
c. Location-selling - Answer -A. - Omnichannel distribution is the term generally used
for distribution that enables personalized sales to customers through multiple, integrated
communication channels.
Which of the following are examples of products that can be offered as voluntary
benefits? Choose all that apply.
Life insurance
Disability income insurance
Accident insurance
Critical illness insurance
Long-term care insurance - Answer -All of them- All of the above benefits are examples
of voluntary benefits. Some financial professionals engage in worksite marketing to
distribute these benefits.
Submit
The first step in a series of face-to-face meetings with a prospect is for the financial
professional to present the proposal in hopes of completing the sale.
a. True
b. False - Answer -B. - One of the first steps in engaging face-to-face with a prospect is
for the financial professional to identify the prospect's financial needs. A competent and
ethical financial professional normally would not present a proposal without first
understanding the prospect's needs.
distribution systems - Answer -The method an insurance company uses to connect its
products or services with the potential customers who might want or need them.
Direct distribution system - Answer -A distribution system in which the insurance
company owns the distribution system and communicates directly with the customer.
Intermediary distribution system - Answer -A system in which the insurance company
relies on external individuals and organizations to connect with the customer.
direct sales force - Answer -Financial professionals directed by an insurer who
distribute the insurer's products.
, agent - Answer -A company employee or independent contractor who is authorized to
act on behalf of an insurance company in selling insurance products.
agency contract - Answer -A written agreement that outlines the agent's role and
responsibilities and the agent's compensation.
Career agent - Answer -An agent who is under a full-time contract with an insurer to
sell primarily that insurance company's life, health, and annuity products. Also known as
a captive agent.
Multiple-line exclusive agents (MLEAs) - Answer -An agent who sells life insurance,
health insurance, annuities, and property-casualty products for one insurance company,
with the majority of sales being property-casualty products.
salaried sales representatives - Answer -A company employee who is paid a salary for
making insurance sales and providing sales support.
group representatives - Answer -Salaried insurance company employees specifically
trained in the techniques of marketing and servicing group products.
direct to consumer (D2C) sales - Answer -Non-face-to-face distribution programs
directed by the insurance company.
response rate - Answer -The percentage of targeted customers who respond to a
direct-to-consumer sales approach.
Companies use different types of professionals to sell their products. Can you
distinguish among them?
Brian Delange maintains his own office where he sells a variety of products—annuities
and life, health, and p/c insurance—for XYZ Insurance Group. Brian is a
a. Career agent
b. Multiple-line exclusive agent
c. Salaried sales representative - Answer -B. - Brian is most likely a multiple-line
exclusive agent, which is an agent who sells life insurance, health insurance, annuities,
and property-casualty products for one insurance company, with the majority of sales
being property-casualty products.
Companies use different types of professionals to sell their products. Can you
distinguish among them?
Lucy Champion has a contract with ABC Life and sells primarily that company's life,
health, and annuity products to individual clients. Lucy is a
Omnichannel distribution - Answer -A form of distribution that enables personalized
sales to customers through multiple, integrated communication channels.
Common ways to engage with customers - Answer -- Face to Face
- Phone
- Direct Mail or Email
- Online
- Print and Broadcast Media
- Worksite Marketing
- Location Selling
Face to Face - Answer -Financial professionals commonly meet face-to-face with
potential customers, often referred to as prospects. Financial professionals follow a
fairly typical sales process during a series of meetings.
During these face-to-face meetings, the financial professional:
Identifies the prospect's financial needs
Develops a proposal that recommends one or more insurance products to meet the
identified needs
Presents the proposal to the prospect in hopes of completing a sale
If the sale is successful, assists the customer in applying for the product, submits the
application to the insurer, and, in some instances, delivers the policy to the customer
Prospects - Answer -A potential customer for an insurer's products or services.
Phone - Answer -Insurers and financial professionals can use telephones to share
information with customers and prospects. Sometimes, the customer will initiate the
contact...
Direct Mail or Email - Answer -An insurer or financial professional using direct mail or
email distributes insurance sales materials through a mail service directly to a list of
prospective customers. These mailings can be physical letters, brochures, or flyers
mailed to the prospect or emails sent to a distribution list. The target market for direct
mail might be readers of a particular publication or holders of a particular credit card.
For paper mail, the sales materials usually consist of an introduction letter, a brochure
that describes a particular product, an insurance or annuity application, or an inquiry
form the customer can use to request further information about the product. For email,
the insurer provides links to similar items on the insurer's website.
Online - Answer -Most insurers' websites provide information and self-service options
and promote products that can satisfy needs. Insurers also advertise their products
,through third-party websites and social media. Consumers using these websites may
contact the company by telephone, email, or web chat to ask questions or purchase a
product. Often, insurers put these consumers in contact with a financial professional.
Financial professionals may also use websites and social media to engage with
customers directly.
Print and Broadcast Media - Answer -An insurer or financial professional may use
printed publications, such as magazines or newspapers, to describe a particular product
and generate interest in that product. Insurers can try to reach a particular target market
by printing advertisements in newspapers in certain geographical areas or in magazines
that appeal to certain demographics. For example, an advertisement for an annuity
product designed for people age 62 or older might appear in a magazine for retired
people.
An insurer can use radio, television, or video streaming sites to disseminate an
advertising message over a wide area to a large, generally undifferentiated audience.
However, selecting certain programs or times of the day in which to advertise does
allow an insurer some selectivity. For example, a life insurance product might be
advertised on television between the hours of 8 and 10 p.m. when newly married
couples or young parents are likely watching television.
Worksite Marketing - Answer -Financial professionals sometimes engage in worksite
marketing to distribute voluntary benefits. Usually, the employer collaborates with the
financial professional to promote voluntary benefits to employees.
Examples of voluntary benefits
include:
Life insurance
Disability insurance
Accident insurance
Critical illness insurance
Long-term care insurance
ID theft protection
Legal services
Financial counseling
Worksite Marketing definition - Answer -A method for distributing voluntary benefits to
people at their place of work.
Voluntary Benefits - Answer -Individual or group insurance or other financial products
offered through an employer, but paid for by the covered employee, usually through
payroll deduction.
Location selling - Answer -Some insurance companies also sell insurance products
through a method known as location-selling. These locations can be staffed by a
financial professional or offer self-service options for customers.
,Location-selling systems may be located in businesses such as department stores, big
box stores, grocery stores, and funeral homes.
Location selling system - Answer -A method for distributing insurance products that is
designed to generate customer-initiated sales at an office or information kiosk in a store,
shopping mall, or other non-insurance business establishment.
Which of the following enables personalized sales to customers through multiple,
integrated communication channels?
a. Omnichannel distribution
b. Worksite marketing
c. Location-selling - Answer -A. - Omnichannel distribution is the term generally used
for distribution that enables personalized sales to customers through multiple, integrated
communication channels.
Which of the following are examples of products that can be offered as voluntary
benefits? Choose all that apply.
Life insurance
Disability income insurance
Accident insurance
Critical illness insurance
Long-term care insurance - Answer -All of them- All of the above benefits are examples
of voluntary benefits. Some financial professionals engage in worksite marketing to
distribute these benefits.
Submit
The first step in a series of face-to-face meetings with a prospect is for the financial
professional to present the proposal in hopes of completing the sale.
a. True
b. False - Answer -B. - One of the first steps in engaging face-to-face with a prospect is
for the financial professional to identify the prospect's financial needs. A competent and
ethical financial professional normally would not present a proposal without first
understanding the prospect's needs.
distribution systems - Answer -The method an insurance company uses to connect its
products or services with the potential customers who might want or need them.
Direct distribution system - Answer -A distribution system in which the insurance
company owns the distribution system and communicates directly with the customer.
Intermediary distribution system - Answer -A system in which the insurance company
relies on external individuals and organizations to connect with the customer.
direct sales force - Answer -Financial professionals directed by an insurer who
distribute the insurer's products.
, agent - Answer -A company employee or independent contractor who is authorized to
act on behalf of an insurance company in selling insurance products.
agency contract - Answer -A written agreement that outlines the agent's role and
responsibilities and the agent's compensation.
Career agent - Answer -An agent who is under a full-time contract with an insurer to
sell primarily that insurance company's life, health, and annuity products. Also known as
a captive agent.
Multiple-line exclusive agents (MLEAs) - Answer -An agent who sells life insurance,
health insurance, annuities, and property-casualty products for one insurance company,
with the majority of sales being property-casualty products.
salaried sales representatives - Answer -A company employee who is paid a salary for
making insurance sales and providing sales support.
group representatives - Answer -Salaried insurance company employees specifically
trained in the techniques of marketing and servicing group products.
direct to consumer (D2C) sales - Answer -Non-face-to-face distribution programs
directed by the insurance company.
response rate - Answer -The percentage of targeted customers who respond to a
direct-to-consumer sales approach.
Companies use different types of professionals to sell their products. Can you
distinguish among them?
Brian Delange maintains his own office where he sells a variety of products—annuities
and life, health, and p/c insurance—for XYZ Insurance Group. Brian is a
a. Career agent
b. Multiple-line exclusive agent
c. Salaried sales representative - Answer -B. - Brian is most likely a multiple-line
exclusive agent, which is an agent who sells life insurance, health insurance, annuities,
and property-casualty products for one insurance company, with the majority of sales
being property-casualty products.
Companies use different types of professionals to sell their products. Can you
distinguish among them?
Lucy Champion has a contract with ABC Life and sells primarily that company's life,
health, and annuity products to individual clients. Lucy is a
