LOMA 281 Exam Questions and Answers
100% Solved | Graded A+
401(k) plan - ✔✔In the United States, a type of retirement plan that allows
employees to make contributions on a pre-tax basis.
absolute assignment - ✔✔An assignment of a life insurance policy under
which the policyowner transfers all policy ownership rights to the assignee.
Contrast with collateral assignment.
accelerated death benefit - ✔✔A supplemental life insurance policy benefit
which provides that a policyowner may elect to receive all or part of the
policy's death benefit before the insured's death if certain conditions are
met. Also known as a living benefit.
accidental death and dismemberment (AD&D) benefit - ✔✔A supplemental
life insurance policy benefit that provides an accidental death benefit and
provides a dismemberment benefit payable to the insured if an accident
causes the insured to lose any two limbs or the sight in both eyes.
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,accidental death benefit - ✔✔A supplemental life insurance policy benefit
that provides a death benefit in addition to the policy's basic death benefit if
the insured dies as a result of an accident.
accumulation at interest dividend option - ✔✔A policy dividend option under
which the policy dividends are left on deposit with the insurer to accumulate
at interest.
accumulation period - ✔✔The period between the contract owner's
purchase of a deferred annuity and the beginning of the payout period.
accumulation value - ✔✔During a deferred annuity's accumulation period,
the amount paid for the deferred annuity, plus the investment earnings,
minus the amount of any withdrawals and fees.
actively-at-work provision - ✔✔A group insurance policy provision which
states that, in order to be eligible for coverage, an employee must be
actively at work—rather than ill or on leave—on the day the insurance
coverage is to take effect.
activities of daily living (ADLs) - ✔✔The activities of eating, bathing,
dressing, continence, toileting, or transferring into or out of a bed, chair, or
wheelchair.
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,actuary - ✔✔An expert in financial risk management and the mathematics
and modeling of insurance, annuities, and financial instruments.
additional term insurance dividend option - ✔✔A policy dividend option
under which the insurer uses each policy dividend as a net single premium
to purchase one-year term insurance on the insured's life.
Affordable Care Act (ACA) - ✔✔In the U.S., a law that requires insurance
companies to accept all applicants for medical expense coverage and
restricts insurers from basing premium rates on preexisting conditions.
aleatory contract - ✔✔A contract under which one party provides
something of value to another party in exchange for a conditional promise.
annuitant - ✔✔The person whose lifetime is used to determine the amount
of benefits payable under an annuity contract.
annuity - ✔✔A financial product under which an insurer promises to make a
series of periodic payments to a named person or entity in exchange for a
premium or series of premiums.
annuity contract - ✔✔A contract under which an insurer promises to make
a series of periodic payments to a named individual in exchange for a
premium or a series of premiums.
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, annuity period - ✔✔The time span between each of the payments in the
series of periodic income payments .
antiselection - ✔✔The tendency of individuals who believe they have a
greater-than-average likelihood of loss to seek insurance protection to a
greater extent than do other individuals.
asset - ✔✔An item of value that a company owns. Examples of assets
include cash, buildings, and investments.
assignee - ✔✔The party to whom life insurance property rights are
transferred.
assignment - ✔✔An agreement under which an insurance policyowner
transfers some or all of his ownership rights in the policy to another party.
assignment provision - ✔✔A life insurance policy provision which describes
the roles of the insurer and the policyowner when the policy is assigned.
assignor - ✔✔The policyowner who makes an assignment of a life
insurance policy.
attained age - ✔✔The age an insured has reached (attained) on a specified
date.
attained age conversion - ✔✔A conversion of a term life insurance policy to
a cash value life insurance policy in which the premium rate for the cash
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
100% Solved | Graded A+
401(k) plan - ✔✔In the United States, a type of retirement plan that allows
employees to make contributions on a pre-tax basis.
absolute assignment - ✔✔An assignment of a life insurance policy under
which the policyowner transfers all policy ownership rights to the assignee.
Contrast with collateral assignment.
accelerated death benefit - ✔✔A supplemental life insurance policy benefit
which provides that a policyowner may elect to receive all or part of the
policy's death benefit before the insured's death if certain conditions are
met. Also known as a living benefit.
accidental death and dismemberment (AD&D) benefit - ✔✔A supplemental
life insurance policy benefit that provides an accidental death benefit and
provides a dismemberment benefit payable to the insured if an accident
causes the insured to lose any two limbs or the sight in both eyes.
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,accidental death benefit - ✔✔A supplemental life insurance policy benefit
that provides a death benefit in addition to the policy's basic death benefit if
the insured dies as a result of an accident.
accumulation at interest dividend option - ✔✔A policy dividend option under
which the policy dividends are left on deposit with the insurer to accumulate
at interest.
accumulation period - ✔✔The period between the contract owner's
purchase of a deferred annuity and the beginning of the payout period.
accumulation value - ✔✔During a deferred annuity's accumulation period,
the amount paid for the deferred annuity, plus the investment earnings,
minus the amount of any withdrawals and fees.
actively-at-work provision - ✔✔A group insurance policy provision which
states that, in order to be eligible for coverage, an employee must be
actively at work—rather than ill or on leave—on the day the insurance
coverage is to take effect.
activities of daily living (ADLs) - ✔✔The activities of eating, bathing,
dressing, continence, toileting, or transferring into or out of a bed, chair, or
wheelchair.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,actuary - ✔✔An expert in financial risk management and the mathematics
and modeling of insurance, annuities, and financial instruments.
additional term insurance dividend option - ✔✔A policy dividend option
under which the insurer uses each policy dividend as a net single premium
to purchase one-year term insurance on the insured's life.
Affordable Care Act (ACA) - ✔✔In the U.S., a law that requires insurance
companies to accept all applicants for medical expense coverage and
restricts insurers from basing premium rates on preexisting conditions.
aleatory contract - ✔✔A contract under which one party provides
something of value to another party in exchange for a conditional promise.
annuitant - ✔✔The person whose lifetime is used to determine the amount
of benefits payable under an annuity contract.
annuity - ✔✔A financial product under which an insurer promises to make a
series of periodic payments to a named person or entity in exchange for a
premium or series of premiums.
annuity contract - ✔✔A contract under which an insurer promises to make
a series of periodic payments to a named individual in exchange for a
premium or a series of premiums.
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, annuity period - ✔✔The time span between each of the payments in the
series of periodic income payments .
antiselection - ✔✔The tendency of individuals who believe they have a
greater-than-average likelihood of loss to seek insurance protection to a
greater extent than do other individuals.
asset - ✔✔An item of value that a company owns. Examples of assets
include cash, buildings, and investments.
assignee - ✔✔The party to whom life insurance property rights are
transferred.
assignment - ✔✔An agreement under which an insurance policyowner
transfers some or all of his ownership rights in the policy to another party.
assignment provision - ✔✔A life insurance policy provision which describes
the roles of the insurer and the policyowner when the policy is assigned.
assignor - ✔✔The policyowner who makes an assignment of a life
insurance policy.
attained age - ✔✔The age an insured has reached (attained) on a specified
date.
attained age conversion - ✔✔A conversion of a term life insurance policy to
a cash value life insurance policy in which the premium rate for the cash
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
