LOMA 281 Module 1 Questions And Correct Answers 20242025 (G... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
LOMA 281 Module 1 Questions And Correct Answers
2024/2025 (GRADED A+)
1. Risk: the possibility of an unexpected result.
2. Premium: A specified amount of money an insurer charges in exchange for its
agreement to pay a policy benefit when a specific loss occurs.
3. Insurance company: A company that provides protection against the risk of
financial loss caused by specific events.
4. Life insurance: A type of insurance under which the insurer promises to pay a
death benefit upon the death of a named person.
5. Annuity: A financial product by which an insurer, in return for receiving a
1/5
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,LOMA 281 Module 1 Questions And Correct Answers 20242025 (G... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
premi-um, promises to make periodic payments to a named person or entity.
6. Applicant: The person or entity that applies for an insurance policy.
7. Policyowner: The person or entity that owns the issued policy.
8. Insured: The person whose life or health the policy insures.
9. Beneficiary: The person named to receive the policy benefit if the insured event
occurs.
10. Third party policy: A policy one person purchases that insures the life of
another person.
11. Speculative risks: A risk that involves three possible outcomes: loss, gain, or
no change.
12. Pure risk: A risk that involves no possibility of gain; either a loss occurs or no
2/5
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,LOMA 281 Module 1 Questions And Correct Answers 20242025 (G... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
loss occurs.
13. Contracts of indemnity: 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.
14. Valued contract: 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.
15. Face amount: the amount of the policy benefit listed on the first page of a
lifeinsurance policy.
16. Law of large numbers: A theory of probability which states that, typically, the
more times we observe a particular event, the more likely it is that our observed
3/5
3 of 18 01/09/2024, 13
LOMA 281 Module 1 Questions And Correct Answers
2024/2025 (GRADED A+)
1. Risk: the possibility of an unexpected result.
2. Premium: A specified amount of money an insurer charges in exchange for its
agreement to pay a policy benefit when a specific loss occurs.
3. Insurance company: A company that provides protection against the risk of
financial loss caused by specific events.
4. Life insurance: A type of insurance under which the insurer promises to pay a
death benefit upon the death of a named person.
5. Annuity: A financial product by which an insurer, in return for receiving a
1/5
1 of 18 01/09/2024, 13
,LOMA 281 Module 1 Questions And Correct Answers 20242025 (G... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
premi-um, promises to make periodic payments to a named person or entity.
6. Applicant: The person or entity that applies for an insurance policy.
7. Policyowner: The person or entity that owns the issued policy.
8. Insured: The person whose life or health the policy insures.
9. Beneficiary: The person named to receive the policy benefit if the insured event
occurs.
10. Third party policy: A policy one person purchases that insures the life of
another person.
11. Speculative risks: A risk that involves three possible outcomes: loss, gain, or
no change.
12. Pure risk: A risk that involves no possibility of gain; either a loss occurs or no
2/5
2 of 18 01/09/2024, 13
,LOMA 281 Module 1 Questions And Correct Answers 20242025 (G... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
loss occurs.
13. Contracts of indemnity: 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.
14. Valued contract: 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.
15. Face amount: the amount of the policy benefit listed on the first page of a
lifeinsurance policy.
16. Law of large numbers: A theory of probability which states that, typically, the
more times we observe a particular event, the more likely it is that our observed
3/5
3 of 18 01/09/2024, 13
