LOMA 291 MODULE 1 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
A party that has an interest in how a company conducts its business. Also known
as a constituent.
Answer:
Stakeholders (consituents)
Question:
Dividend
Answer:
Compensation that a company may pay to owners upon a vote by the company's
board of directors.
Question:
We stockholders expect the company to grow steadily. We expect to earn a
reasonable return, sometimes in the form of dividends. Do you know what a
dividend is? Sometimes the board of directors votes to make a payment to the
stockholders. The payment is called a dividend.
Answer:
Stockholder
Question:
Here are some factors I considered when I chose to buy a policy from Forthright:
Good company reputation
Policy features
Reasonable charges
Financial strength
Customer service
Forthright provides my personal safety net because of their good reputation and
policy features. They charge me for reasonable expenses and they have the
financial strength to be around for the long haul to pay the policy benefits they
promise me and my family. So far, I'm pleased with my policy and the company's
customer service.
Answer:
Policy owner
Question:
In insurance sales, any individual—including agents, bank-affiliated sales
personnel, and brokers—who is licensed to sell insurance products, solicit sales,
or negotiate insurance contracts.
Why do I place business with Forthright? Here are some reasons:
Forthright's products meet my clients' needs.
Forthright offers competitive compensation on the business I sell.
Its staff is top notch and provides fast and accurate support.
,The company has good ratings, so I trust its ability to meet policy obligations in
the future.
Answer:
financial professional
Question:
key stakeholders
Answer:
- stockholder
- policyowner
- financial professional
- employee
- reinsurer
- consultants/vendors
- borrowers
- regulators
- rating agencies
- associations
- trade associations
Question:
employee values
Answer:
I value the long-term employment.
I enjoy my coworkers.
I'm proud to work for a reputable company.
I appreciate the salary and benefits.
Question:
reinsurance
Answer:
Insurance that one insurance company, known as the direct writer, purchases from
another insurance company, known as the reinsurer, to transfer all or part of the
risk on insurance policies that the direct writer issued.
Question:
consultants/vendors example
Answer:
I'm a public accountant. I provide external audit services to Forthright. Many
vendors provide goods and services to Forthright.
Question:
Borrowers example
Answer:
I'm a real estate developer. To fund construction projects, I borrow from
Forthright Financial. Forthright lends money as one of its investments. They expect
to earn a return, so they keep a close eye on me.
, Question:
regulators example
Answer:
I conduct in-person examinations of insurance companies that do business in my
state. I make sure they comply with regulations and maintain fair business
practices.
Question:
rating agencies example
Answer:
I assign a grade to Forthright Financial and other companies. The grade, called a
rating, indicates my company's opinion of Forthright's overall health and stability.
Question:
associations example
Answer:
As a Forthright actuary, I belong to several organizations that set professional
standards. Forthright employs many professionals—actuaries, accountants,
auditors, attorneys, underwriters, medical directors, and others. All of these
groups have professional associations.
Question:
Select each group which counts among an insurance
company's stakeholders.
a. Financial professionals
b. Reinsurance companies
c. Employees
d. Trade associations
e. Owners of company stock
f. Policyowners
Answer:
All of them -
Question:
In each of the following questions, select the person who
would most likely make each statement about his or her
interests as a stakeholder.
"My company provides backup to Forthright on paying its
claims."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
Answer:
D.
AND CORRECT ANSWERS
Question:
A party that has an interest in how a company conducts its business. Also known
as a constituent.
Answer:
Stakeholders (consituents)
Question:
Dividend
Answer:
Compensation that a company may pay to owners upon a vote by the company's
board of directors.
Question:
We stockholders expect the company to grow steadily. We expect to earn a
reasonable return, sometimes in the form of dividends. Do you know what a
dividend is? Sometimes the board of directors votes to make a payment to the
stockholders. The payment is called a dividend.
Answer:
Stockholder
Question:
Here are some factors I considered when I chose to buy a policy from Forthright:
Good company reputation
Policy features
Reasonable charges
Financial strength
Customer service
Forthright provides my personal safety net because of their good reputation and
policy features. They charge me for reasonable expenses and they have the
financial strength to be around for the long haul to pay the policy benefits they
promise me and my family. So far, I'm pleased with my policy and the company's
customer service.
Answer:
Policy owner
Question:
In insurance sales, any individual—including agents, bank-affiliated sales
personnel, and brokers—who is licensed to sell insurance products, solicit sales,
or negotiate insurance contracts.
Why do I place business with Forthright? Here are some reasons:
Forthright's products meet my clients' needs.
Forthright offers competitive compensation on the business I sell.
Its staff is top notch and provides fast and accurate support.
,The company has good ratings, so I trust its ability to meet policy obligations in
the future.
Answer:
financial professional
Question:
key stakeholders
Answer:
- stockholder
- policyowner
- financial professional
- employee
- reinsurer
- consultants/vendors
- borrowers
- regulators
- rating agencies
- associations
- trade associations
Question:
employee values
Answer:
I value the long-term employment.
I enjoy my coworkers.
I'm proud to work for a reputable company.
I appreciate the salary and benefits.
Question:
reinsurance
Answer:
Insurance that one insurance company, known as the direct writer, purchases from
another insurance company, known as the reinsurer, to transfer all or part of the
risk on insurance policies that the direct writer issued.
Question:
consultants/vendors example
Answer:
I'm a public accountant. I provide external audit services to Forthright. Many
vendors provide goods and services to Forthright.
Question:
Borrowers example
Answer:
I'm a real estate developer. To fund construction projects, I borrow from
Forthright Financial. Forthright lends money as one of its investments. They expect
to earn a return, so they keep a close eye on me.
, Question:
regulators example
Answer:
I conduct in-person examinations of insurance companies that do business in my
state. I make sure they comply with regulations and maintain fair business
practices.
Question:
rating agencies example
Answer:
I assign a grade to Forthright Financial and other companies. The grade, called a
rating, indicates my company's opinion of Forthright's overall health and stability.
Question:
associations example
Answer:
As a Forthright actuary, I belong to several organizations that set professional
standards. Forthright employs many professionals—actuaries, accountants,
auditors, attorneys, underwriters, medical directors, and others. All of these
groups have professional associations.
Question:
Select each group which counts among an insurance
company's stakeholders.
a. Financial professionals
b. Reinsurance companies
c. Employees
d. Trade associations
e. Owners of company stock
f. Policyowners
Answer:
All of them -
Question:
In each of the following questions, select the person who
would most likely make each statement about his or her
interests as a stakeholder.
"My company provides backup to Forthright on paying its
claims."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional
Answer:
D.
