LOMA 311 EXAM QUESTIONS ANSWERED CORRECTLY & GRADED A+

LOMA 311 EXAM QUESTIONS ANSWERED CORRECTLY & GRADED A+ Financing statement - Answer-A document that is filed with a specified state or local govt official to record the existence of a security interest in identified property of a debtor Preemption - Answer-A legal doctrine that holds some matters are of such National importance that the federal laws override conflicting state laws McCarran-Ferguson Act - Answer-Gives the states primary authority to regulate insurance as long as congress finds such state regulation to be adequate Annual statement - Answer-A comprehensive financial report that must be filed by insurers with the NAIC and all states they are licensed in by March 1st of each year National council of insurance regulators (NCOIL) - Answer-An organization primarily made up of state legislators who are members of legislative insurance committees Admitted assets - Answer-Assets that an insurer may include on its Annual Statement. All others are known as nonadmitted assets Risk based capital (RBC) ratio requirements - Answer-Enable regulators to evaluate the adequacy of an insurer's capital compared to the riskiness of its operations Receivership (conservatorship) - Answer-The state takes control of and administers the insurer's assets and liabilities. The receiver is responsible for formulating a plan to conserve and control assets, meeting the insurer's obligations Guaranty association - Answer-An organization that operates to protect policyowners, insureds, beneficiaries, annuitants, payees and assignees against losses that might result from a life of health insurer's impairment or insolvency Gramm-Leach-Bliley Act (GLBA) - Answer-A us federal law that permits financial firms to affiliate in ways that result in a more competitive and integrated financial services industry Dodd-Frank Wall Street Reform and Consumer Protection Act - Answer-A US federal law that provides oversight of the financial services industry and improves accountability and transparency and protects consumers from abusive practices Systemically important financial institutions - Answer-Institutions banks and non banks, including insurers whose failure could pose a risk to the financial system Entire contract provision - Answer-Defines the documents that constitute the contract between the insurer and the policyowner Grace period provision - Answer-Allows the policyowner to pay a renewal premium within a specified period of time after a premium due date Incontestability provision - Answer-Denies the insurer the right to avoid the contract on the grounds of a material misrepresentation in the application after the contract has been in force for a stated period of time Misstatement of age or sex provision - Answer-Describes how the insurer may adjust the policy benefit or premium if the application incorrectly stated the insured's age or sex Settlement options provision - Answer-Grants the policyowner or beneficiary several choices as to how the insurer will pay the policy proceeds Policy loan provision - Answer-Gives the owner of a cash value life insurance policy the right to take out a loan for an amount that does not exceed the policy's net cash value less one year's interest on the loan Nonforfeiture provision - Answer-Describes the options available to the owner of a cash value life insurance policy if it lapses or the policyowner decides to surrender the policy Policy dividends provision - Answer-Describes the ways an owner of a participating policy may receive policy dividends Free look provision - Answer-Gives the policyowner a period of time (usually 10 days) following policy delivery to cancel the policy and receive a refund of all premiums paid Reinstatement provision - Answer-Describes the conditions the policyowner must meet to reinstate the policy after a lapse System for electronic rate and form filing (serff) - Answer-An electronic filing system maintained by the NAIC that allows insurers to review each participating insurance department's policy filing requirements Interstate insurance production regulation commission (IIPRC) - Answer-Multistate public entity that operates alongside the state insurance departments Reciprocity - Answer-An agreement between two states under which each state gives residents of the other state certain privileges Uniform Electronic Transactions Act (UETA) - Answer-Model law adopted by national conference of commissions on uniform state laws (NCCUSL) to provide for the effectiveness of electronic signatures Age Discrimination in Employment Act (ADEA) - Answer-Act that prohibits discrimination in employment for persons age 40 and over. Permits employers to reduce level of certain group life insurance benefits so that the cost to the employer of providing these benefits to older workers is no more than it costs to provide full benefits to younger workers Constructive delivery - Answer-A legally adequate delivery of a life insurance policy that occurs when the insurer parts with control of the policy and intends to be bound to the terms of the contract Closed contract - Answer-A contract for which only those terms and conditions that are printed in - or attached to - the contract are considered to be part of the contract Open contract - Answer-A contract that identifies the documents that constitute the contract between the parties, but all the enumerated documents are not necessarily attached to the contract. Issued by fraternal insurers