©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:11PM.
LOMA 291 Exam Questions And Answers
2025 Update.
What is an ombudsman? - Answer✔An independent, impartial, and confidential professional
with expertise in handling ethics problems
What are the four functions of management? - Answer✔Planning, organizing, directing, and
controlling
What is the formula for required rate of return? - Answer✔Risk-free rate + Risk premium =
Required Return
What are the three lines of defense in the risk management model? - Answer✔1. Operational
management
2. Internal monitoring and oversight
3. Internal Audit
What is omnichannel distribution? - Answer✔Distribution that enables personalized sales to
customers through multiple, integrated communication channels.
What is a trail commission? - Answer✔A percentage of an annuity's accumulated value paid
periodically, usually annually, to the financial professional that sold the annuity.
What is churning? - Answer✔A prohibited sales practice that occurs when a financial
professional induces a client to replace one policy after another, multiple times, so that the
financial professional can earn a series of first-year commissions on the replacements.
What is twisting? - Answer✔A prohibited sales practice that occurs when a financial
professional misrepresents the features of a policy to induce the customer to replace an
existing policy.
What is rebating? - Answer✔A sales practice, prohibited in most jurisdictions, in which an
insurance financial professional offers a prospect an inducement, such as a cash payment, to
purchase a life insurance policy or an annuity contract, and the inducement is not offered to all
applicants in similar situations and is not stated in the policy itself.
1
LOMA 291 Exam Questions And Answers
2025 Update.
What is an ombudsman? - Answer✔An independent, impartial, and confidential professional
with expertise in handling ethics problems
What are the four functions of management? - Answer✔Planning, organizing, directing, and
controlling
What is the formula for required rate of return? - Answer✔Risk-free rate + Risk premium =
Required Return
What are the three lines of defense in the risk management model? - Answer✔1. Operational
management
2. Internal monitoring and oversight
3. Internal Audit
What is omnichannel distribution? - Answer✔Distribution that enables personalized sales to
customers through multiple, integrated communication channels.
What is a trail commission? - Answer✔A percentage of an annuity's accumulated value paid
periodically, usually annually, to the financial professional that sold the annuity.
What is churning? - Answer✔A prohibited sales practice that occurs when a financial
professional induces a client to replace one policy after another, multiple times, so that the
financial professional can earn a series of first-year commissions on the replacements.
What is twisting? - Answer✔A prohibited sales practice that occurs when a financial
professional misrepresents the features of a policy to induce the customer to replace an
existing policy.
What is rebating? - Answer✔A sales practice, prohibited in most jurisdictions, in which an
insurance financial professional offers a prospect an inducement, such as a cash payment, to
purchase a life insurance policy or an annuity contract, and the inducement is not offered to all
applicants in similar situations and is not stated in the policy itself.
1
