LOMA 291 Module 1 Exam 2025
Questions and Answers
Stakeholders (consituents) - ANSWER✔✔-A party that has an interest in how a
company conducts its business. Also known as a constituent.
Dividend - ANSWER✔✔-Compensation that a company may pay to owners upon a
vote by the company's board of directors.
Stockholder - ANSWER✔✔-We stockholders expect the company to grow steadily. We
expect to earn a reasonable return, sometimes in the form of dividends. Do you know
what a dividend is? Sometimes the board of directors votes to make a payment to the
stockholders. The payment is called a dividend.
Policy owner - ANSWER✔✔-Here are some factors I considered when I chose to buy a
policy from Forthright:
Good company reputation
Policy features
Reasonable charges
Financial strength
Customer service
Forthright provides my personal safety net because of their good reputation and policy
features. They charge me for reasonable expenses and they have the financial strength
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,to be around for the long haul to pay the policy benefits they promise me and my
family. So far, I'm pleased with my policy and the company's customer service.
financial professional - ANSWER✔✔-In insurance sales, any individual—including
agents, bank-affiliated sales personnel, and brokers—who is licensed to sell insurance
products, solicit sales, or negotiate insurance contracts.
Why do I place business with Forthright? Here are some reasons:
Forthright's products meet my clients' needs.
Forthright offers competitive compensation on the business I sell.
Its staff is top notch and provides fast and accurate support.
The company has good ratings, so I trust its ability to meet policy obligations in the
future.
key stakeholders - ANSWER✔✔-- stockholder
- policyowner
- financial professional
- employee
- reinsurer
- consultants/vendors
- borrowers
- regulators
- rating agencies
- associations
- trade associations
employee values - ANSWER✔✔-I value the long-term employment.
I enjoy my coworkers.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
,I'm proud to work for a reputable company.
I appreciate the salary and benefits.
reinsurance - ANSWER✔✔-Insurance that one insurance company, known as the direct
writer, purchases from another insurance company, known as the reinsurer, to transfer
all or part of the risk on insurance policies that the direct writer issued.
consultants/vendors example - ANSWER✔✔-I'm a public accountant. I provide
external audit services to Forthright. Many vendors provide goods and services to
Forthright.
Borrowers example - ANSWER✔✔-I'm a real estate developer. To fund construction
projects, I borrow from Forthright Financial. Forthright lends money as one of its
investments. They expect to earn a return, so they keep a close eye on me.
regulators example - ANSWER✔✔-I conduct in-person examinations of insurance
companies that do business in my state. I make sure they comply with regulations and
maintain fair business practices.
rating agencies example - ANSWER✔✔-I assign a grade to Forthright Financial and
other companies. The grade, called a rating, indicates my company's opinion of
Forthright's overall health and stability.
associations example - ANSWER✔✔-As a Forthright actuary, I belong to several
organizations that set professional standards. Forthright employs many professionals—
actuaries, accountants, auditors, attorneys, underwriters, medical directors, and others.
All of these groups have professional associations.
Select each group which counts among an insurance company's stakeholders.
a. Financial professionals
b. Reinsurance companies
c. Employees
d. Trade associations
e. Owners of company stock
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, f. Policyowners - ANSWER✔✔-All of them -
In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"My company provides backup to Forthright on paying its claims."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional - ANSWER✔✔-D.
In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I need prompt handling of my transactions when I make a withdrawal."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional - ANSWER✔✔-A.
In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I value having a good job with reliable income and benefits."
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
Questions and Answers
Stakeholders (consituents) - ANSWER✔✔-A party that has an interest in how a
company conducts its business. Also known as a constituent.
Dividend - ANSWER✔✔-Compensation that a company may pay to owners upon a
vote by the company's board of directors.
Stockholder - ANSWER✔✔-We stockholders expect the company to grow steadily. We
expect to earn a reasonable return, sometimes in the form of dividends. Do you know
what a dividend is? Sometimes the board of directors votes to make a payment to the
stockholders. The payment is called a dividend.
Policy owner - ANSWER✔✔-Here are some factors I considered when I chose to buy a
policy from Forthright:
Good company reputation
Policy features
Reasonable charges
Financial strength
Customer service
Forthright provides my personal safety net because of their good reputation and policy
features. They charge me for reasonable expenses and they have the financial strength
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,to be around for the long haul to pay the policy benefits they promise me and my
family. So far, I'm pleased with my policy and the company's customer service.
financial professional - ANSWER✔✔-In insurance sales, any individual—including
agents, bank-affiliated sales personnel, and brokers—who is licensed to sell insurance
products, solicit sales, or negotiate insurance contracts.
Why do I place business with Forthright? Here are some reasons:
Forthright's products meet my clients' needs.
Forthright offers competitive compensation on the business I sell.
Its staff is top notch and provides fast and accurate support.
The company has good ratings, so I trust its ability to meet policy obligations in the
future.
key stakeholders - ANSWER✔✔-- stockholder
- policyowner
- financial professional
- employee
- reinsurer
- consultants/vendors
- borrowers
- regulators
- rating agencies
- associations
- trade associations
employee values - ANSWER✔✔-I value the long-term employment.
I enjoy my coworkers.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
,I'm proud to work for a reputable company.
I appreciate the salary and benefits.
reinsurance - ANSWER✔✔-Insurance that one insurance company, known as the direct
writer, purchases from another insurance company, known as the reinsurer, to transfer
all or part of the risk on insurance policies that the direct writer issued.
consultants/vendors example - ANSWER✔✔-I'm a public accountant. I provide
external audit services to Forthright. Many vendors provide goods and services to
Forthright.
Borrowers example - ANSWER✔✔-I'm a real estate developer. To fund construction
projects, I borrow from Forthright Financial. Forthright lends money as one of its
investments. They expect to earn a return, so they keep a close eye on me.
regulators example - ANSWER✔✔-I conduct in-person examinations of insurance
companies that do business in my state. I make sure they comply with regulations and
maintain fair business practices.
rating agencies example - ANSWER✔✔-I assign a grade to Forthright Financial and
other companies. The grade, called a rating, indicates my company's opinion of
Forthright's overall health and stability.
associations example - ANSWER✔✔-As a Forthright actuary, I belong to several
organizations that set professional standards. Forthright employs many professionals—
actuaries, accountants, auditors, attorneys, underwriters, medical directors, and others.
All of these groups have professional associations.
Select each group which counts among an insurance company's stakeholders.
a. Financial professionals
b. Reinsurance companies
c. Employees
d. Trade associations
e. Owners of company stock
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, f. Policyowners - ANSWER✔✔-All of them -
In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"My company provides backup to Forthright on paying its claims."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional - ANSWER✔✔-D.
In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I need prompt handling of my transactions when I make a withdrawal."
a. Policyowner
b. Stockholder
c. Employee
d. Reinsurer
e. Financial professional - ANSWER✔✔-A.
In each of the following questions, select the person who would most likely make each
statement about his or her interests as a stakeholder.
"I value having a good job with reliable income and benefits."
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
