LOMA 281 Module 1 Questions and Answers Latest Update 2027
Question 1.
the possibility of an unexpected result.
Correct Answer: Risk
Question 2.
A specified amount of money an insurer charges in exchange for its agreement to pay a
policy benefit when a specific loss occurs.
Correct Answer: Premium
Question 3.
A company that provides protection against the risk of financial loss caused by specific
events.
Correct Answer: Insurance company
Question 4.
A type of insurance under which the insurer promises to pay a death benefit upon the
death of a named person.
Correct Answer: Life insurance
Question 5.
A financial product by which an insurer, in return for receiving a premium, promises to
make periodic payments to a named person or entity.
Correct Answer: Annuity
Question 6.
The person or entity that applies for an insurance policy.
Correct Answer: Applicant
Question 7.
The person or entity that owns the issued policy.
Correct Answer: Policyowner
, Question 8.
The person whose life or health the policy insures.
Correct Answer: Insured
Question 9.
The person named to receive the policy benefit if the insured event occurs.
Correct Answer: Beneficiary
Question 10.
A policy one person purchases that insures the life of another person.
Correct Answer: Third party policy
Question 11.
A risk that involves three possible outcomes: loss, gain, or no change.
Correct Answer: Speculative risks
Question 12.
A risk that involves no possibility of gain; either a loss occurs or no loss occurs.
Correct Answer: Pure risk
Question 13.
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.
Correct Answer: Contracts of indemnity
Question 14.
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.
Correct Answer: Valued contract
Question 15.
the amount of the policy benefit listed on the first page of a life insurance policy.
Correct Answer: Face amount
Question 1.
the possibility of an unexpected result.
Correct Answer: Risk
Question 2.
A specified amount of money an insurer charges in exchange for its agreement to pay a
policy benefit when a specific loss occurs.
Correct Answer: Premium
Question 3.
A company that provides protection against the risk of financial loss caused by specific
events.
Correct Answer: Insurance company
Question 4.
A type of insurance under which the insurer promises to pay a death benefit upon the
death of a named person.
Correct Answer: Life insurance
Question 5.
A financial product by which an insurer, in return for receiving a premium, promises to
make periodic payments to a named person or entity.
Correct Answer: Annuity
Question 6.
The person or entity that applies for an insurance policy.
Correct Answer: Applicant
Question 7.
The person or entity that owns the issued policy.
Correct Answer: Policyowner
, Question 8.
The person whose life or health the policy insures.
Correct Answer: Insured
Question 9.
The person named to receive the policy benefit if the insured event occurs.
Correct Answer: Beneficiary
Question 10.
A policy one person purchases that insures the life of another person.
Correct Answer: Third party policy
Question 11.
A risk that involves three possible outcomes: loss, gain, or no change.
Correct Answer: Speculative risks
Question 12.
A risk that involves no possibility of gain; either a loss occurs or no loss occurs.
Correct Answer: Pure risk
Question 13.
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.
Correct Answer: Contracts of indemnity
Question 14.
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.
Correct Answer: Valued contract
Question 15.
the amount of the policy benefit listed on the first page of a life insurance policy.
Correct Answer: Face amount
