LOMA 361 - CHAPTER 8 EXAM
QUESTIONS AND ANSWERS. VERIFIED
2026.
Asset valuation reserve (AVR) - ANS For life insurance companies in the United States, a
reserve that minimizes the effects of both realized and unrealized gains and losses on an
insurer's invested assets when those gains and losses are related to the credit quality of the
assets a risk known as credit risk-or fluctuations in the prices of securities-a risk known as equity
risk.
commission - ANS Monetary compensation paid to an agent; usually expressed as a
percentage of the gross premiums paid by customers.
contractual payments - ANS Payments on supplementary contracts.
credit risk - ANS In the context of the asset valuation reserve, the risk that a financial
obligation will not be paid.
deposit-type contract - ANS Under statutory accounting principles, a contract that does not
expose the insurer to mortality risk or morbidity risk.
dividend accumulations - ANS Dividends that a policyowner elects to leave on deposit at
interest with the insurer.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2026.
Asset valuation reserve (AVR) - ANS For life insurance companies in the United States, a
reserve that minimizes the effects of both realized and unrealized gains and losses on an
insurer's invested assets when those gains and losses are related to the credit quality of the
assets a risk known as credit risk-or fluctuations in the prices of securities-a risk known as equity
risk.
commission - ANS Monetary compensation paid to an agent; usually expressed as a
percentage of the gross premiums paid by customers.
contractual payments - ANS Payments on supplementary contracts.
credit risk - ANS In the context of the asset valuation reserve, the risk that a financial
obligation will not be paid.
deposit-type contract - ANS Under statutory accounting principles, a contract that does not
expose the insurer to mortality risk or morbidity risk.
dividend accumulations - ANS Dividends that a policyowner elects to leave on deposit at
interest with the insurer.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.